Investing.com — Shares of Flutter Entertainment (NYSE: FLUT) tumbled 4.7%, while DraftKings Inc. (NASDAQ: NASDAQ:DKNG) fell 1.5% in sympathy, following an update from Flutter Entertainment on the impact of U.S. sports results on its fourth quarter 2024 trading. The company, a global leader in online sports betting and iGaming, experienced a period of very unfavorable U.S. sports results, primarily from NFL Parlay and Same Game Parlay outcomes, which were the most customer friendly in nearly two decades.
Flutter’s update revealed that these results led to an estimated adverse gross gaming revenue (GGR) impact of $438 million, with estimated reductions in revenue of approximately $390 million and Adjusted EBITDA of approximately $260 million for the period from November 12 to December 31, 2024. Consequently, U.S. revenue for 2024 is now estimated to be around $370 million lower than the previous guidance midpoint, at approximately $5.78 billion. U.S. Adjusted EBITDA is also estimated to be about $205 million less than the previous guidance midpoint, at approximately $505 million.
Despite these setbacks, the company stated that the transitory nature of these results does not affect the underlying assumptions and guidance expectations communicated during its Investor Day in September. Flutter remains confident in its long-term growth trajectory.
For the fourth quarter, U.S. revenue is expected to be about $1.59 billion, and U.S. Adjusted EBITDA is estimated at $161 million, reflecting an overall estimated adverse Q4 sports results impact totaling $643 million in GGR, $550 million in revenue, and $360 million in Adjusted EBITDA. However, outside of the U.S., continued good momentum, especially in the UK and Ireland with favorable sports results in the English Premier League, means that 2024 revenue and Adjusted EBITDA for the group ex-U.S. are estimated to be approximately 1% and 2% higher than the mid-points of previous guidance.
Flutter plans to provide a more detailed update with its scheduled Q4 earnings on March 4, 2025, along with formal guidance for 2025.
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