Flutter, the owner of Paddy Power and Betfair, has revised its profit guidance upwards despite falling short of analyst predictions in Q1 2025.
The gambling behemoth's quarterly results revealed that it did not meet revenue and profit expectations due to a series of favourite wins during the US March Madness college basketball series, as reported by .
Bank of America had projected Flutter's revenue at $3.8bn (£3bn) and adjusted operating profit at $688m. However, the actual figures were $3.7bn and $616m respectively, representing an increase of eight per cent and 20 per cent from Q1 2024.
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This news led to a more than two per cent drop in Flutter's share price, which has fallen over 14 per cent since the beginning of 2025. Despite this, the group was able to raise its profit expectations as previous forecasts did not include the acquisitions of Snaitech and NSX or changes in exchange rates.
Flutter increased its revenue forecast for 2025 by $1.2bn, although it reduced its US revenue forecast by $280m. Nevertheless, this would still mean a 123 per cent growth for Fanduel, the company's US arm.
Flutter also slightly increased its operating profit estimate for 2025 to $3.2bn. The group now boasts 14.9m monthly players, up from 13.7m in Q1 2024.
"I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the group," said Flutter CEO Peter Jackson.
"Fanduel continues to win in the US, retaining leadership positions in both online sports betting and Igaming, while we saw a positive performance within International, where our scale and the competitive advantages of our Flutter Edge have been enhanced by the acquisition of Snai in Italy."