Flutter Issues Strong 2025 Guidance Backed by FanDuel Growth

Posted on: March 4, 2025, 06:08h. 

Last updated on: March 5, 2025, 11:00h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Flutter forecasts sizable 2025 EBITDA, revenue growth
  • US operations could represent close to half of 2025 sales

Flutter Entertainment (NYSE: FLUT) announced impressive 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA), and revenue guidance on Tuesday — outlooks that accompanied the gaming company’s fourth-quarter results.

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The Flutter logo as seen in an investor deck. The company is forecasting strong 2025 EBITDA and sales supported in part by FanDuel. (Image: Flutter Entertainment)

The FanDuel parent said it expects 2025 adjusted EBITDA of $2.94 billion to $3.38 billion on revenue of $15.48 billion to $16.38 billion. Highlighting the strength of FanDuel, Flutter forecast existing US state EBITDA of $1.28 billion to $1.72 billion on sales of $7.47 billion to $7.97 billion. The operator cautioned that the fourth-quarter debut of online sports betting in Missouri and a similar launch in Alberta, Canada early next year could pinch revenue and EBITDA by $40 million and $90 million, respectively.

FanDuel remains America’s number one sportsbook with its leading product maintaining a clear structural revenue margin advantage over competitors,” said CEO Peter Jackson in a statement. “At the same time, excellent execution secured a new number one spot for FanDuel Casino in iGaming.”

The Dublin-based gaming company owns 95% of FanDuel with regional casino operator Boyd Gaming (NYSE: BYD) controlling the other 5%. Fox Corporation (NASDAQ: FOX) has an option to acquire 18.6% of the sportsbook giant.

FanDuel Flexing in the US

Data confirm that FanDuel, which represents half of the US online sports betting duopoly, is the dominant internet gaming company in the states.

In the final three months of 2024, FanDuel market share as measured by gross gaming revenue (GGR) was 36%. That was comprised of 43% sportsbook GGR and 26% iGaming GGR market share. FanDuel’s fourth-quarter net gaming revenue (NGR) was 49% for the sportsbook sides of its business, according to Flutter.

Those are scary numbers for most FanDuel rivals not named DraftKings, and underscore the difficulty competitors face when it comes to cracking that duopoly. That task could be even harder this year as FanDuel is already showing signs of momentum, helped in part by the Super Bowl.

“We have had a great start to 2025, including record levels of customer engagement for the Super Bowl where FanDuel had 3 million active customers placing 17.7 million bets with $470 million wagered on the day,” said Jackson in the press release.

Starting with the current quarter, Flutter will deliver financial results in two segments — one comprised of FanDuel and the other representing the company’s Australia, UK, and other international units.

Flutter’s Fantastic Finances

Flutter’s balance sheet is in excellent shape, particularly when measured against other gaming companies with significant land-based operations. The company said its net cash provided by operating activities jumped by approximately $700 million in 2024 as its leverage ratio declined to 2.2x from 3.1x at the end of 2023.

Flutter’s stout cash position paved the way for it to buy back $121 million worth of its shares in the fourth quarter as it eyes 2025 repurchase activity of up to $1 billion under the $5 billion buyback plan it announced last September.

As of Dec. 31, 2024, Flutter had $1.53 billion in cash and cash equivalents and $48 million in restricted cash. Both figures are well ahead of the $1.49 billion and $22 million seen at the end of 2023.