Flutter Entertainment reported second-quarter earnings that missed Wall Street expectations, prompting a significant stock decline and leadership transition. The company posted earnings per share of 49 cents against analyst estimates of 60 cents per share, though revenue slightly exceeded projections at $4.33 billion compared to the expected $4.26 billion. In response to the weaker-than-expected results, Flutter cut its full-year adjusted earnings guidance for its U.S. business to $760 million, representing a 22% reduction from prior guidance. Shares declined more than 11% following the announcement.
The struggling performance reflected challenges at FanDuel, Flutter’s core U.S. sportsbook operation, which has lost market share dominance over the past year. Outgoing CEO Peter Jackson attributed part of the decline to external factors, including a less compelling NFL schedule and weak player narratives in the prior year. However, he acknowledged that Flutter also miscalibrated its customer strategy by reducing promotional offerings and generosity, entering the current year with a smaller sportsbook than intended.
Flutter is now shifting course with a substantial investment strategy aimed at reversing the decline. The company plans to deploy approximately $270 million in additional EBITDA into U.S. operations during the second half of the year, with emphasis on enhanced rewards programs, increased promotions, and improved customer protections. Promotional spending will rise closer to 6% of handle, exceeding previous plans but below some analyst concerns about reaching 7%.
Initial results from the turnaround efforts show encouraging signs, with FanDuel’s loyalty program reaching 70% of customers during the quarter and scheduled for nationwide availability by football season. Sports engagement metrics demonstrated improvements, including a 26% increase in NBA Finals active bettors per game and strong MLB performance. Flutter is also expanding through prediction markets, relocating sports and novelty contracts from CME to Crypto.com to access a broader product catalog and faster launch capabilities before football season.
Peter Jackson is stepping down as CEO effective October 1, to be replaced by Dan Taylor, currently leading Flutter’s international business. Taylor previously assumed oversight of FanDuel operations in May following the departure of that unit’s CEO. Jackson credited Taylor with helping shape the current strategy and positioned him to restore execution and convert renewed customer engagement into sustainable growth.
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