Flutter Entertainment Seeks World Cup Lift After Revenue Miss
Flutter Entertainment, the global betting giant behind brands such as Paddy Power, Betfair, Sky Bet, and FanDuel, has reported full-year figures for 2025 that fell short of market expectations, sending its shares tumbling. The group is now looking to the upcoming FIFA World Cup as a pivotal opportunity to drive growth and recover from this setback.
Financial Performance and Market Reaction
The company announced revenues of 16.4 billion US dollars (approximately £12.2 billion) for 2025, marking a 17% increase from the previous year. However, this figure missed its most recent forecast of 16.7 billion dollars (£12.4 billion) and represented a downgrade from an earlier guidance of 17.3 billion dollars (£12.8 billion) issued in November.
Following the results, which were released after market close on Thursday, Flutter's shares in London plummeted by as much as 13% in Friday morning trading. This decline reflects investor disappointment amid broader concerns in the US market about the rising popularity of prediction markets, such as Kalshi and Polymarket, which could impact traditional gambling operators.
In terms of profitability, Flutter swung to a pre-tax loss of 121 million dollars (£89.7 million) in 2025, down from a profit of 16 million dollars (£11.9 million) in 2024. Despite this, underlying earnings showed resilience, rising 27% to 832 million dollars (£616.5 million).
Future Outlook and Challenges
Looking ahead, Flutter has projected revenues of 18.4 billion dollars (£13.6 billion) for 2026, which would represent a growth slowdown to 12%. This forecast is lower than market expectations and comes amid several headwinds.
- International sales growth, including the UK business, is expected to decelerate to 13% from 19% in 2025.
- Underlying earnings are predicted to edge up by just 1% in 2026, partly due to Britain's recent increase in online gambling taxes.
- The group has implemented "robust" plans to mitigate the impact of these higher taxes in the UK.
In a related move, Paddy Power announced last October the closure of 57 betting shops across the UK and Ireland, putting nearly 250 jobs at risk. Flutter employs over 28,500 staff globally, with 11% of its workforce based in the US.
World Cup as a Strategic Opportunity
Amid these challenges, Flutter is placing significant emphasis on the FIFA World Cup, set to begin on June 11 in North America. The company describes the tournament as a "great opportunity" to boost customer acquisition and deploy innovative products across more fixtures than ever before.
Peter Jackson, Chief Executive of Flutter, stated: "With a pivotal calendar of global sporting and iGaming moments ahead, including the World Cup, we are focused on capturing the full breadth of these opportunities in 2026 and beyond." He added that the group's global footprint, particularly in the US where the tournament is primarily held, positions it well to capitalise on this event.
The expanded World Cup format is seen as a critical focal point for driving engagement and growth, offering Flutter a chance to leverage its scale and technology to enhance profitability in a dynamic market.
