FLUTTER ENTERTAINMENT (FLTR) – Gaming & Leisure
| Price: £162.35 -8.9% | P/E: n/a |
| Market Cap: £31.2bn | Yield: n/a |
Flutter, the world’s largest online gambling group which includes the Betfair, Paddy Power and SkyBetting brands, as well as PokerStars and FanDuel, disappointed the market today by lowering its 2025 and 2026 profit forecasts.
On the one hand, the firm has been on the wrong end of a long streak of sports results which have handed punters healthy payouts, while on the other it has decided to invest aggressively in the fast-growing ‘events contracts’ market.
Events contracts let people bet on the probability of specific events happening, including the outcome of elections and events related to the economy, for example.
Our View
Flutter cut its profit guidance from $3.3 billion to $2.9 billion in August. Today’s cut means another $40 million to $50 million reduction for 2025 and a reduction of $200 million to $300 million in its 2026 outlook.
This a business with no earnings and no dividend, a valuation north of £30 billion, which makes it vulnerable to bad news, and a highly volatile share price, so frankly it’s only suitable for investors with a high tolerance for risk.
The events contract market is growing fast, but whether the firm needs to spend so heavily just to be ‘in with the in crowd’ is debatable, especially if it can’t guarantee being a top-tier player.
Read the press release here: https://www.flutter.com/investors/
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