Flutter Entertainment Q2 Results Show Strong FanDuel Performance

Flutter Entertainment’s latest quarterly report tells a story of growth and some financial trade-offs. The company behind FanDuel and Betfair is attracting more players and taking in more money — but some accounting adjustments have cut into the bottom line.

Good to know

• Flutter’s Q2 revenue hit $4.2 billion, up 16% year over year.
• FanDuel remains the top sportsbook in the United States.
• Adjusted earnings jumped 25% despite a drop in net profit.

The April–June period saw Flutter’s average monthly players climb 11% to roughly 16 million worldwide. In the U.S., about 3.5 million people were active on FanDuel each month, up 2% from last year. Sports betting handle in the country rose 7% to $11.7 billion, while total U.S. revenue grew 17% to nearly $1.8 billion.

Profit Hit From FanDuel Valuation Changes

Even with higher revenue, net profit fell sharply — down 88% from the same quarter last year to $37 million. That drop was linked to an $81 million non-cash charge tied to changes in FanDuel’s valuation.

Fox Corp. still holds an option to buy 18.6% of FanDuel for about $4.5 billion, and shifts in the fair value of that option can swing Flutter’s results. In Q2 last year, those swings added a $91 million gain; this year, it meant a loss.

The valuation picture also shifted after Flutter bought back the final 5% of FanDuel from Boyd Gaming Corp. for roughly $1.755 billion. Flutter now values the U.S. sportsbook at about $31 billion — well above the level implied by the Fox option price.

Strong Performance in Betting and iGaming

When excluding valuation impacts, Flutter’s adjusted EBITDA rose 25% to $919 million. CEO Peter Jackson noted that U.S. results got a boost from better sports outcomes compared to earlier quarters.

“Following the last two quarters with very unfavorable sports results in the US, Q2 saw favorable outcomes, with June in particular delivering the highest gross revenue margin month on record of 16.3%,” Jackson said. “This, alongside very strong iGaming growth, helped deliver total US revenue growth of 17%.”

FanDuel’s top market position is a key driver for Flutter’s U.S. business, keeping it ahead of rival DraftKings.

Watching the Prediction Market Space

Like its competitors, Flutter is keeping an eye on potential changes in U.S. regulations for prediction markets. Jackson said the company’s experience running the Betfair Exchange — which operates similarly to event contracts — gives it an advantage if rules change.

“The event contracts landscape continues to develop at pace,” he said. “We have two decades’ experience of operating the world’s largest betting exchange, the Betfair Exchange, which shares similar characteristics with event contracts, and this will help inform our views. We are closely monitoring regulatory developments, and are assessing the opportunities and potential participation strategies this may present for FanDuel.”

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