Flutter, the owner of Paddy Power, has announced that its long-serving chief executive, Peter Jackson, will step down at the end of September after eight years in the role. The company also reduced its sales and earnings forecasts for the year.
Leadership Transition
Dan Taylor, who currently heads Flutter's international business, will succeed Mr Jackson. The leadership change comes as the gambling giant navigates a period of adjustment in its key US market.
Mr Jackson has led the group through a major expansion in the US, driven by its FanDuel sportsbook business. The company, which also owns Betfair and SkyBet, said it would miss its earnings guidance for the year, impacted by declining US sales and increased investment in the region.
Financial Impact
Flutter now expects earnings before interest, tax, depreciation, and amortization (Ebitda) to be around $2.655 billion (£1.97 billion), $210 million below previous expectations. The shortfall is partly due to investment aimed at strengthening its US proposition and improving momentum in the FanDuel business.
Group adjusted Ebitda fell by 45% to $508 million (£377 million) in the first half of the year. US revenues dropped by 6% to $1.68 billion (£1.25 billion), with a 15% decline in its sportsbook arm. The company attributed the weakness to a comparison with a period last year that had been boosted by “adverse” sports results.
Market Context
The US weakness comes amid rapid growth from American prediction markets such as Polymarket and Kalshi. Despite this, total group revenues increased by 3% to $4.3 billion (£3.2 billion) for the six-month period, supported by 10% growth in its international market.
Flutter, listed in New York, told shareholders that early trading in the third quarter was “ahead of expectations,” helped by “good” engagement during the World Cup knockout stages and “slightly favourable” results. However, it still expects revenues to be $395 million (£293.2 million) below previous forecasts, at $17.91 billion (£13.29 billion) for the year.
Mr Jackson said: “Looking ahead, I feel confident we are positioning the business optimally and we are on a trajectory to deliver sustainable, long-term value for our shareholders.”
