Flutter Entertainment PLC (NYSE:FLUT), the world’s leading online sports betting and iGaming operator, stock plunges 11.59% (As on November 13, 12:25:47 AM UTC-4, Source: Google Finance) after the company reported third-quarter adjusted earnings that significantly exceeded analyst expectations, despite customer-friendly sports results impacting revenue. Flutter’s performance was driven by strong iGaming growth of 35% YoY, which helped offset the impact of customer-friendly sports results. The company’s average monthly players increased 9% to 14.1 million, reflecting solid user engagement across its platforms. The company also announced the launch of “FanDuel Predicts” in December, a new prediction market product that will include sports in states without access to regulated sports betting. This expansion represents a significant growth opportunity for Flutter in untapped markets. Net cash provided by operating activities and free cash flow in Q3 declined by 28% and 78% respectively, due to the Boyd payment

Moreover, US revenue +9% year-over-year led by strong, product-driven iGaming revenue growth of 44%. Sportsbook AMP growth accelerated to 5% (Q2: -4%). Sportsbook revenue was -5% year-over-year due to the temporary impacts of sports results, and very high levels of uneconomic generosity from sportsbook competitors at NFL season start, leading to Q3 Adjusted EBITDA of $51m, -12% year-over-year. In response, increased FanDuel investment during Q4 has been effective, with year-over-year handle growth +10% Q4 to date, and the NBA season off to a strong start. International revenue +21% and adjusted EBITDA of $505m, +10% year-over-year including the benefit of M&A. Organic Sportsbook revenue -6% due to the impacts of a strong European Football Championships (“Euros”) and bookmaker friendly results in the prior year

FLUT in the third quarter of FY25 has reported the adjusted earnings per share of $1.64, beating the analysts’ estimates for the adjusted earnings per share of 79 cents. The company had reported the adjusted revenue growth of 17 percent to $3.79 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $3.89 billion. Group Q3 adjusted EBITDA grew 6% and adjusted EBITDA margin declined 130bps.

Looking ahead, Flutter updated its full-year 2025 guidance, now expecting group revenue of $16.69 billion and adjusted EBITDA of $2.915 billion, representing 19% and 24% YoY growth respectively. The company lowered its US revenue forecast to $7.17 billion from previous guidance of $7.47 billion, citing continued customer-friendly sports results and increased investment in its FanDuel Predicts platform.