Flutter Entertainment Reports 8% Revenue Growth to $3.665 Billion in Q1 2025

Flutter Entertainment plc reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $3.665 billion, an 8% rise from $3.397 billion in the same period last year. The company achieved a net income of $335 million, a substantial turnaround from a net loss of $177 million in the prior year. This improvement was reflected in the net income margin, which increased to 9.1% from a negative margin of 5.2%. Adjusted EBITDA also saw a notable increase of 20%, rising to $616 million from $514 million, with an adjusted EBITDA margin of 16.8%, up from 15.1%.

The company's U.S. segment was a key driver of growth, with revenue increasing by 18% to $1.666 billion, supported by a rise in average monthly players (AMPs) to 4.312 million. This growth was attributed to the scaling of operations and strong performance in existing states, despite some unfavorable sports results during the NCAA "March Madness" tournament. In contrast, the International segment's revenue grew modestly by 1% to $1.999 billion, with a 4% increase in iGaming revenue offsetting a 2% decline in sportsbook revenue.

Operationally, Flutter reported an increase in AMPs across its platforms, totaling 14.880 million, up from 13.722 million year-over-year. The company also noted a strategic realignment of its reporting segments, now categorized as U.S. and International, which reflects its evolving business structure. The International segment continues to operate in over 100 countries, with significant contributions from markets such as the UK, Italy, and Australia.

In terms of strategic developments, Flutter completed the acquisition of Pluto (Italia) S.p.A., the parent company of Snaitech, for approximately €2.3 billion ($2.6 billion) on April 30, 2025. This acquisition is expected to enhance Flutter's position in the Italian market and will be included in the International segment from the second quarter of 2025. Additionally, Flutter has entered into a bridge credit agreement to finance this acquisition, further solidifying its commitment to growth in key markets.

Looking ahead, Flutter remains optimistic about its growth trajectory, particularly in the U.S. market, where regulatory changes continue to create opportunities for expansion. The company is focused on leveraging its competitive advantages and enhancing its product offerings to drive sustainable revenue growth. However, Flutter also acknowledges the potential impact of regulatory changes and market conditions on its operations, emphasizing the importance of strategic investments and operational efficiencies to navigate these challenges.