Dual-listed Flutter Entertainment PLC (FLUT) (GB:FLTR) has trimmed its U.S. revenue guidance for 2024, citing the impact of a surge in winning bets by NFL gamblers. The company now expects its U.S. revenue to be approximately $5.78 billion in 2024, compared to the previous guidance of $6.05 billion to $6.25 billion. Meanwhile, Flutter also reduced its U.S. adjusted EBITDA forecast to fall between $465 million and $545 million from the previous range of $670 million to $750 million. Following the update, Flutter’s NYSE-listed shares fell by 1.28%, and its shares in London lost 0.92%.
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Flutter Entertainment owns well-known brands like Paddy Power, PokerStars, Betfair, etc. The company derives most of its profits from the U.S. and relocated its primary listing to the NYSE in May 2024.
Flutter Takes a Hit Amid NFL Betting Boom
According to Flutter’s update, the latest NFL season (2024/2025) has been the most favorable for customers since the U.S. lifted its sports betting ban in 2018. Additionally, the season saw the highest number of favorites winning in almost 20 years. Notably, bookmakers typically face losses when favorites win.
The favorable outcomes for customers resulted in an estimated negative impact of $438 million on gross gaming revenue (GGR). This led to a revenue decrease of about $390 million and a reduction in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of around $260 million between November 12 and December 31.
Flutter Sees Strong UK Momentum
On the other hand, Flutter reported strong momentum in the UK, particularly in the UK’s English Premier League. As a result, it expects a 1% rise in its 2024 revenue and a 2% increase in adjusted EBITDA for non-U.S. operations compared to previous guidance.
Are Flutter Shares a Good Buy?
According to TipRanks consensus, FLTR stock has received a Strong Buy rating based on 18 Buy recommendations. The Flutter share price target is 24,856.08p, which is 21.07% above the current level.
