Flutter Entertainment Stock Falls As FanDuel Parent Cuts Guidance

Flutter Entertainment Plc FLUT shares are trading lower in Tuesday’s after-hours session after the company cut near-term guidance due to a period of “very unfavorable” sports results.

What Happened: After the market close on Tuesday, FanDuel parent company Flutter Entertainment announced that strong U.S. customer momentum has been offset by unfavorable betting outcomes.

From Nov. 12, 2024, to Dec. 31, 2024, customer-friendly results accounted for an estimated adverse gross gaming revenue impact of $438 million, as well as estimated reductions in revenue of approximately $390 million. Flutter noted that adjusted EBITDA also took a hit of approximately $260 million.

As a result, the company now expects 2024 revenue of approximately $5.78 billion, down from previous guidance of $6.05 billion to $6.25 billion. Fourth-quarter revenue is now expected to be approximately $1.59 billion. Full-year adjusted EBITDA is expected to come in at approximately $505 million, down from previous guidance of $670 million to $750 million. Fourth-quarter adjusted EBITDA is now expected to be approximately $161 million.

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“The 2024/2025 NFL season to date has been the most customer-friendly since the launch of online sports betting with the highest rate of favorites winning in nearly 20 years,” the company said.

“The transitory nature of these results has no impact on the underlying assumptions and guidance expectations communicated at our Investor Day in September, and we remain confident in the growth drivers and long-term growth trajectory set out at the Investor Day.”

Outside of the U.S., Flutter is expected to exceed midpoints of guidance due to favorable sports results in the English Premier League. The company now expects 2024 revenue to be 1% higher than the midpoint of previous guidance and 2024 adjusted EBITDA to be approximately 2% higher.

Flutter is scheduled to report fourth-quarter earnings on March 4. The company noted that it will provide formal guidance for 2025 at that time.

FLUT Price Action: Flutter Entertainment shares were down 1.93% after hours, trading at $247 at the time of publication Tuesday, according to Benzinga Pro.

Photo: Shutterstock.