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State of Play’s TL;DR
- Flutter said CEO Peter Jackson will step down during the FanDuel parent’s Q2 earnings report.
- On Wednesday, Flutter cut full-year guidance and said it would focus more on prediction markets in the US.
Flutter Entertainment announced during this week’s second-quarter earnings report that Peter Jackson will step down as chief executive in October. Jackson has led Flutter since 2018. Dan Taylor, head of its international business, will take over.
On Wednesday, the parent company of FanDuel cut full-year guidance and said it would spend more in the US to compete with prediction markets.
The leadership change landed alongside a weaker near-term outlook for the gambling group, which said heavier spending on bonuses, promotions, and loyalty schemes would hurt “near-term profitability.” Flutter shares fell more than 7% in early trading.
Flutter to focus on US interests
Flutter cut the midpoint of its full-year revenue guidance by $395 million to $17.9 billion. It also cut the midpoint of its full-year EBITDA guidance by $210 million to $2.66 billion.
According to the company, the lower outlook reflects a decision to invest more aggressively in the US market. Jackson said Flutter should focus on growing player numbers in response to “current market dynamics.”
FanDuel holds 39% of the US sports betting market.
Flutter has been expanding its prediction market efforts while also acknowledging slower-than-expected traction in that segment. The company admitted that progress in growing FanDuel Predicts had been “slower than planned.”
Flutter started offering prediction wagers through a partnership with CME Group in December. It said it is moving sports wagers to Crypto.com to offer a prediction market version of accumulators, or parlays.
Revenue beat estimates, but player numbers declined
Flutter said revenue for the three months to June rose to $4.33 billion, up from $4.19 billion a year earlier and above analyst expectations. But the average number of monthly players fell 11% to 14.3 million.
The company also pointed to stronger-than-expected early third-quarter trading, helped by engagement during the knockout stages of the World Cup. Players wagered more than $3 billion during the tournament.
Flutter said it expects $50 million in revenue from market making in 2026 and said it has “world-class pricing and risk management capabilities.”
Based on reporting by the Financial Times.
