Flutter's Q4 2024 EPS falling short of forecasts can be attributed to unfavorable sports results in the quarter. Although the company had a strong performance in Q3 2024, with a 27% revenue increase to $3.25 billion and a surge in sports betting and iGaming operations, the fourth quarter was negatively impacted by unexpected losses in sports betting12.
- Impact of Unfavorable Sports Results: The company's U.S. segment, which saw a 51% revenue growth in Q3, experienced a decline in performance in Q4 due to unexpected losses in sports betting. This was due to some NFL sports results that caught bookmakers by surprise, resulting in parlays (a type of bet) paying off for bettors, rather than the bookies3.
- Overall Performance: Despite the setback in Q4, Flutter's full-year 2024 guidance was raised, driven by the strong performance in Q3. The company's revenue grew by 27% to $3.25 billion, and adjusted EPS reached $0.43, which beat analyst estimates2. This indicates that the impact of unfavorable sports results in Q4 was partially offset by the robust performance in previous quarters.
In conclusion, while Flutter's Q4 2024 EPS fell short of forecasts due to unfavorable sports results, the company's overall full-year performance remained strong, reflecting its strategic market expansions and product innovations.
3/28/2025 11:17am
