Flutter reports $297 million in net profit for Q2 following U.S. relocation

Flutter Entertainment, the owner of Paddy Power and FanDuel, has raised its full-year guidance after reporting its first financial results since relocating its headquarters and primary stock market listing to the United States.

For the quarter ending June 30, Flutter’s net profit soared to $297 million, more than quadrupling from the same period last year. Revenue increased by 20% year-on-year to $3.61 billion, while average monthly players (AMPs), a key metric for gambling companies, saw a 17% rise. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) also climbed 17% to $738 million.

The company announced sustained growth in both profits and user numbers, driven by its strategic focus on expanding its presence in the U.S. market. Flutter shares jumped as much as 12 percent in after-hours trading in New York.

"Flutter delivered another strong quarter, beating consensus and increasing our revenue and adjusted EBITDA guidance as we continued to capitalize on our global scale," said CEO Peter Jackson in a statement. "The returns we are seeing give us the confidence to continue driving customer acquisition in the second half, building a bigger business, which bodes well for 2025 and beyond."

Flutter’s growing shift to the U.S. market has seen success, especially through its established FanDuel brand. U.S. revenue during the quarter reached approximately $1.5 billion, with AMPs in the region increasing by 27% compared to the previous year.

This growth is expected to continue as more U.S. states legalize gambling, with 38 states already allowing sports betting since the U.S. Supreme Court lifted a nationwide ban in 2018.

As a result of its performance in Q2, Flutter has revised its full-year guidance upward. The company now expects U.S. revenue to be between $6.05 billion and $6.35 billion, with adjusted EBITDA ranging from $680 million to $800 million. For its operations outside the U.S., Flutter anticipates revenue between $7.85 billion and $8.15 billion, with adjusted EBITDA expected to be in the range of $1.69 billion to $1.85 billion.

In the UK and Ireland, Flutter reported an 18% increase in revenue, driven by a 12% rise in sports betting and a 25% growth in its online gaming business. The company noted that the European Football Championship, commonly referred to as the Euros, had a positive impact on sportsbook revenue, which benefited from a 170 basis point increase in net revenue margin.

The company attributed the improved margins to the growing popularity of "same game parlay" wagers, which allow multiple bets on a single game, as well as favorable sports results during the quarter, particularly during the Euros.

However, Flutter also reported an increase in operating expenses. The cost of sales rose by 23% to $1.84 billion, while technology, research, and development expenses grew by 23% to $216 million. Sales and marketing expenses increased by 12% to $746 million as the company continued to invest in customer acquisition and brand building.