DUBLIN (Reuters) – Flutter, the world’s largest online betting company, said on Tuesday it expects profits at its fast-growing U.S. brand FanDuel to fall sharply in 2024 after American football players endured an unprecedented winning streak.
Bookmakers tend to suffer when the favorites win, and Flutter said the NFL season to date has been the most favorable for customers since the US sports betting ban was lifted in 2018, with the highest win rate for NFL favorites in nearly 20 years.
The company estimates U.S. revenue to be approximately $370 million below the midpoint of its previous guidance (about $5.78 billion) and adjusted U.S. earnings to be approximately $205 million below the previous midpoint (about $505 million).
Flutter’s U.S.-listed shares fell 1.7% in extended trading.
The Irish company said it had fared better in recent weeks elsewhere, where a series of more favorable sports results for bookmakers meant it now estimates full-year revenue in 2024 and adjusted EBITDA outside the US to be around 1% and 2%. % higher than in the USA. the middle of his previous leadership.
The company previously projected that adjusted EBITDA for its non-U.S. brands, including Paddy Power (LON:), Betfair and Sportsbet.
Flutter also said the temporary nature of the results did not affect the long-term forecast he presented in September, which said the booming U.S. market would account for nearly half of the expected doubling of profits by 2027.