Flutter CEO Peter Jackson on Q2 earnings and raising FY guidance

Key Concepts

• Earnings Per Share (EPS)
• Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
• FanDuel (FD)
• iGaming (Online Casino Games)
• Sports Betting
• Same Game Parlay
• Market Access
• State Taxes
• Black Market
• Sporting Integrity
• International Expansion
• Acquisition (Sisal, MaxBet)
• Guidance (Financial Forecast)

Second Quarter Results and Guidance

• Flutter Entertainment announced strong Q2 results, beating expectations on both top and bottom lines.
  • Adjusted EPS: $2.95 (vs. street expectation of $2.08).
  • Revenue: $4.2 billion (vs. street expectation of $4.13 billion).
  • Adjusted EBITDA: Also a beat.
• Full-year guidance was raised due to strong momentum.
• Overall business is up 25%, adjusted EBITDA is up 25% year-over-year.

FanDuel Performance

• FanDuel is the number one player in sports betting and iGaming.
• iGaming has been very strong, with revenues up 37% year-over-year.
• Strong products driving iGaming growth:
  • Exclusive games on the platform.
  • New FanDuel Reward Club.
  • New jackpots feature.

Sports Outcomes and Profitability

• Sports outcomes are unpredictable, which is part of the appeal.
• Q2 saw more underdogs winning, which generally benefits FanDuel in the US market.
• Example: Rory McIlroy's performance at the Masters was good for FanDuel US, but less so for the UK business.
• "One of the brilliant things about watching sport is it's completely unpredictable and that's what makes it so exciting to watch."

Boyd Gaming Stake Acquisition

• Flutter acquired Boyd Gaming's 5% stake in FanDuel.
• This acquisition reset market access levels at favorable terms for Flutter.
• The acquisition puts a mark on the value of the FanDuel business.
• Flutter believes they got an attractive valuation and is pleased with the market access fees established for future years.

State Taxes

• Increased state taxes are a headwind, particularly in Illinois.
• Illinois tax changes are expected to negatively impact recreational users and potentially drive business to the black market.
• Favorable market access deals with Boyd have helped offset some of the tax increases for 2025.
• "We think that the taxes that they've bought in will have a really sort of negative impact on the very recreational, super casual users and, you know, if we're not careful, we'll see that some of that business go to the black market and that's terrible from a sporting integrity perspective."

International Expansion

• International business is performing well.
• Acquisition of Sisal in Italy has made Flutter the number one player in that market.
• PokerStars Italian customers were migrated onto the core platform.
• Strong growth in Turkey and India.
• Acquisition of MaxBet in Brazil provides a position in that fast-growing market.
• "We're a very diversified business internationally...there's a lot to like about our global business outside of America where there's big opportunities."

Conclusion

Flutter Entertainment delivered a strong second quarter, driven by growth in FanDuel's iGaming and sports betting offerings, as well as successful international expansion. The acquisition of Boyd Gaming's stake in FanDuel and strategic market access deals are helping to mitigate the impact of rising state taxes. The company is optimistic about its future prospects and has raised its full-year guidance.