Paddy Power owner Flutter warns of hit to profits after customers win big on US sports events
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Paddy Power and FanDuel owner, Flutter, has issued a warning about a potential blow to its sales and profits due to a series of successful bets placed by customers on US sports events. The company disclosed late Tuesday night that the current NFL American football season has been the "most customer friendly" since the inception of online sports betting, noting the highest rate of favourites winning in nearly 20 years. Flutter, which also owns Betfair and Skybet, reported its largest single-day loss on the NFL series in the quarter on December 30, when the Detroit Lions' 40-34 victory over the San Francisco 49ers cost the company $74m (£59m).
The firm anticipates revenues to be impacted by approximately $390m (£313m) and underlying earnings by $260m (£209m) between November 12 and December 31 due to the "very unfavourable US sports results". It projected that gross gaming revenue – a crucial performance indicator showing the amount wagered minus that paid out in winnings – would be around $438m (£351m) lower over the period. Flutter revised its outlook for the US business in 2024, stating revenues would now be around $370m (£297m) lower than the previous guidance of around $5.78bn (£4.6bn) and underlying US earnings would be around $205m (£164m) lower than the $505m (£405m) previously forecast.
Shares in the firm tumbled 3% in Wednesday morning's trade. Flutter revealed that throughout the 2024 NFL season up until the end of December, out of the first 256 games, there were 184 winning favourites – that's about 72% – with the figure rising to 77% for favourites triumphing in the last quarter.
