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Flutter Entertainment posted second-quarter revenue of $4.33 billion, up 3.3% year over year and above analyst estimates of $4.24 billion, but the FanDuel parent said heavier U.S. investment continued to pressure profitability.
Adjusted EBITDA came in at $508 million, ahead of expectations of $484.5 million. Still, adjusted earnings per share were $0.49, below the $0.55 analysts expected, while operating margin fell to -3.3% from 9.3% a year earlier.
Management said increased U.S. promotional spending and the expansion of its Rewards Club loyalty program weighed on near-term earnings.
Peter Jackson said, “We recognize that this weighs on near-term earnings, but we’re convinced it’s the right thing to do to maximize long-term shareholder value.”
U.S. sportsbook investment remains the key pressure point
Flutter said its updated outlook reflects continued investment in its U.S. sportsbook proposition and slower expected U.S. market growth. Rob Coldrake described that as “investment to strengthen our proposition and accelerate FanDuel sportsbook momentum.”
For players and industry watchers, the main takeaway is that Flutter is still prioritizing customer acquisition, retention, and product strength in the U.S. even as that reduces short-term profitability.
The company also highlighted prediction-market and market-making expansion, including FanDuel Predicts and integration with Crypto.com. The update matters because it shows Flutter continuing to broaden its product mix beyond its core sportsbook and gaming operations.
CEO transition and cost-saving plan add to the quarter’s significance
Flutter also announced a leadership change. Peter Jackson will step down as CEO at the end of September, with Dan Taylor set to succeed him.
Alongside that transition, the company said it is launching a new phase of its cost transformation plan targeting an additional $500 million in gross savings by 2029.
Outside the U.S., Flutter pointed to strong execution in markets including Italy and Turkey. It also said regulatory and tax pressure in the UK and Brazil are part of the backdrop for its guidance.
The next key items for readers to watch are the September CEO handover and whether Flutter’s U.S. investment strategy improves FanDuel’s momentum without further weighing on margins. As always, any changes in betting products or platform strategy are worth following carefully and approaching responsibly.
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Source: As reported by theglobeandmail.com.
