Online sports betting firm Flutter (FLTR) swung to a loss for FY25 and issued disappointing guidance for FY26. The shares slid 11% to £80.80, taking losses for 2026 to more than 40% and leaving them at a three-year low.
| Share price: £80.80 (-11%) | PE: n/a |
| Market cap: £14.4bn | Yield: n/a |
Double disappointment
Group revenue for FY25 was $16.38 billion, up 17% on FY24 but below the most recent guidance of $16.69 billion. Meanwhile, EBITDA was $2.84 billion, up 21% but again below the last official guidance of $2.91 billion.
At the bottom line, Flutter swung from a net profit of $162 million to a loss of $407 million. The firm pinned the loss on a non-cash impairment charge of $556 million due to regulation changes in the Indian market.
So far this year, the firm said it had seen lower levels of customer engagement in the crucial US market. This was compounded by ‘less compelling player narratives in the closing stages of the NFL season’.
Therefore, it forecast revenue of $18.4 billion for FY26, up 12% on FY25 but well below the $19.4 billion consensus. EBITDA is seen at $2.97 billion, up 4% on FY25 but still some way below the $3.6 billion consensus.
Flutter cut its FY25 sales and earnings guidance twice last year, in August and November, and still it hasn’t delivered. Whether this says something about US consumers’ willingness to spend on discretionary goods and services or about Flutter’s offering who knows.
What we can say is we aren’t, and never have been, fans of gambling stock. The fall from grace this year has been pretty spectacular so no doubt there will be some bargain-hunting though.
Read the press release here: https://flutter.com/investors/investor-hub/results-reports/
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