The parent company of betting platform FanDuel, Flutter, has seen a hit to its profit after some big upsets in the NFL season led to a winning streak for customers
The New York-listed owner published a trading announcement on Tuesday (January 7) which shared an update on the short-term US sports results impact.
“Following our Q3 earnings report on November 12, continued strong US player momentum has been offset by a period of very unfavorable US sports results across the remainder of November and in December, primarily on NFL Parlay and Same Game Parlay outcomes.
“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.”
Due to this, the company has estimated its US revenue for 2024 to be $370m lower than its previous guidance midpoint at approximately $5.78bn.
“After incremental one-off cost mitigation, 2024 US Adjusted EBITDA is estimated to be approximately $205m lower than the previous guidance midpoint at approximately $505m (previous guidance $670m – $750m).”
The 2024/2024 NFL season, which has been favorable to punters, will end in early January.
Flutter single biggest loss in the quarter amounted to $74mn
Outside of the US, Flutter details “continued good momentum in UK in particular with favorable sports results in the English Premier League.”
This means the betting company now estimates “2024 revenue and Adjusted EBITDA will be approximately 1% and 2% higher than the mid-point of our previous guidance provided at Q3.”
According to The Financial Times, the company said up to the end of December, the favorite had won 184 of the first 256 games of the season. 77 percent of the heavier-backed teams won during the company’s fourth reporting quarter.
The biggest single loss during the quarter is reported to have happened on Monday, December 30, when the Detroit Lions 40-34 win over the San Francisco 49ers cost the company a huge $74mn.
A more in-depth update will be provided with Flutter’s Q4 earnings on March 4, 2025.
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