International agreements propel Flutter's projected revenue and sales expansion announced for the year 2025
Posted on: May 7, 2025, 06:30h.
Last updated on: May 8, 2025, 10:04h.
Todd Shriber @etfgodfather | Financial | Gaming Business | Mergers and Acquisitions | Flutter Eyeing Massive 2025 Earnings Boost with International Acquisitions, FanDuel Still a Growth Beast
Step aside, naysayers! Flutter Entertainment (NYSE: FLUT) is forecasting a staggering 2025, with sizable earnings and revenue growth on the horizon.
The gambling behemoth has boldly predicted 2025 EBITDA of $3.18 billion on revenue of $17.08 billion, a 35% and 22% increase from the previous year, respectively. However, if you exclude the recent acquisitions of Italy's Snai and Brazilian sportsbook operator NSX, those numbers climb to an impressive 14% boost in EBITDA and a whopping 30% surge in sales[1][2].
Why all the fuss? Well, Flutter just wrapped up its Snai purchase at the end of April and is close to sealing the NSX deal too. Last fall, the global gaming titan dropped a cool $350 million in cash for a 56% stake in NSX, Brazil's fourth-largest iGaming operator. The NSX acquisition will catapult Flutter's presence in South America's economic heavyweight[1][2].
FYI, NSX is already peddling profits. Combined, these acquisitions are expected to add a cool $120 million to Flutter's 2025 EBITDA and $1.07 billion in revenue to their bottom line[2].
FanDuel: U.S. Market MVP
To simplify reporting, Flutter shook things up in Q4 by separating its US business, essentially FanDuel, and its international operations for the first time ever. The Hail Mary pass? Demonstrating FanDuel's dominance.
The Q1 results showed NFL-worthy gameplay - with the US business flaunting EBITDA of $1.4 billion on turnover of $7.72 billion[1]. Although these numbers fall below Wall Street's lofty expectations, it's all thanks to a little friendly customer behavior in Q1 2025[1].
As a bonus, Flutter's gleaming crystal ball foresees the launch of online sports betting in Missouri and Alberta, Canada in the coming years, which could potentially pinch the company's revenue and EBITDA by $40 million and $90 million, respectively[1]. But hey, Flutter's CEO, Peter Jackson, thinks their biz is juiced up enough to withstand the impact of a US recession - or even trade tensions[1][3].
"Our business is resilient," Jackson mused in a letter to investors. "For example, during previous periods of consumer pressure in our International markets, we saw no discernible impact on our businesses." Talk about a bonafide game-changer![1]
Weathering the Storm: Tariffs and Prediction Markets
With Flutter shifting its primary listing to NYC and FanDuel pumping up the broader investment thesis, market moguls have a keen eye on the US[4]. Flutter is closely monitoring state tax schemes and the new competition from prediction market operators, just in case they decide to take a dive in the US[4].
Jackson recently highlighted the importance of states balancing their revenue demands against consumer pricing and gaming companies' investment pledges[4]. That said, Flutter has the know-how to compete in the prediction market space if it chooses to go there in the future[4].
"We are also closely monitoring the developments around futures markets and the potential direct and indirect opportunities for FanDuel," wrote Jackson. "We already operate what we believe is the world's largest betting exchange, the Betfair Exchange, and we have vast experience in this space."[4]
Flutter has already dropped $230 million on stock repurchases this year, and they plan to hit the $1 billion mark by year-end[1]. As of Q1, Flutter had $1.53 billion in cash and cash equivalents[1]. Let's roll the dice and see what the rest of the year holds!
Enrichment Data:
Current Status of Flutter Entertainment's Growth and Acquisitions:
Snai Acquisition: Flutter completed the acquisition of Snaitech S.p.A. (Snai), a major Italian operator, on April 29, 2025. This acquisition enhances Flutter's position in Italy, increasing its online market share to approximately 30%[3][4]. The deal is expected to add operational synergies and expand customer acquisition opportunities[3]. Snai's strong retail presence complements Flutter's existing operations in Italy, a market with substantial online growth potential[3].
- NSX Acquisition: Flutter acquired a 56% stake in NSX, a Brazilian sportsbook operator, for $350 million. The acquisition is aimed at enhancing Flutter's exposure in Latin America's largest economy. NSX is already profitable and is expected to be fully integrated soon[2][4].
Impact on 2025 Earnings and Revenue:
- Revenue and EBITDA Growth: The acquisitions of Snai and NSX are projected to add $1.07 billion in revenue and $120 million in adjusted EBITDA to Flutter's 2025 results[4].
Strategic Positioning:
Flutter's strategic acquisitions are part of its broader strategy to invest in leadership positions in attractive international markets. The company is leveraging its Flutter Edge technology to enhance customer experiences and achieve cost synergies[3][4]. CEO Peter Jackson highlighted the importance of these acquisitions in enhancing Flutter's competitive advantages and driving growth[4].
- The NSX acquisition, projected to boost Flutter's 2025 earnings by $120 million and revenue by $1.07 billion, will significantly increase Flutter's presence in South America's economic heavyweight, setting the stage for further international growth.
- In the realm of sports betting and iGaming, Flutter Entertainment (NYSE: FLUT) aims to supplant skeptics by engineering a substantial earnings surge in 2025 through strategic acquisitions like that of Brazilian sportsbook operator NSX.
- 2025 is predicted to be a transformative year for Flutter Entertainment, as the company grapples with the expansion of iGaming in significant markets such as South America and potential new competition from prediction market operators, all while exhibiting remarkable financial resilience.
- In the ever-evolving world of mergers and acquisitions, Flutter Entertainment showcases its forward-thinking strategy, acquiring key players like Italy's Snai and Brazilian sportsbook operator NSX, heightening the company's influential presence in the sports betting and iGaming industry.
- By exercising its financial prowess through acquisitions, Flutter Entertainment is poised to amass sizable earnings and revenue in 2025, foreshadowing an impressive growth trajectory for the global gaming titan.
