01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc's Form 10-Q for the quarter ended March 31, 2025 reports revenue of $3,665 milliona, up from $3,397 million a year earlier, with net income of $335 million versus a net loss of $177 million in the prior-year quarter.
Operating profit rose to $223 millionb from $124 million. The swing to net income was driven largely by other income of $216 million, mainly a $205 million fair value gain on the Fox Option liability, compared with a $174 million expense in the prior-year period. Adjusted EBITDA increased to $616 million from $514 million, with Adjusted EBITDA Margin of 16.8%.
The U.S. segment drove growth, with revenue up 18% to $1,666 million and Adjusted EBITDA rising to $161 millionc from $26 million. The International segment's revenue was broadly flat at $1,999 million, and its Adjusted EBITDA was $518 million. Cash position and capital allocation: cash and cash equivalents were $1,537 million at March 31, 2025.
Operating cash flow was $188 milliond, down from $337 million, reflecting a $220 million outflow in player deposit liabilities and a $210 million outflow in other liabilities. The company repurchased 890,999 shares in the quarter under its $5 billion 2024 Share Repurchase Program. Long-term debt principal was $6,873 million including accrued interest.
The filing reports that disclosure controls were not effective due to material weaknesses that had not been remediated as of March 31, 2025. Subsequent events are significant.
On April 30, 2025, the company completed the acquisition of Pluto (Italia) S.p.A., the holding company of Snaitech S.p.A., for approximately €2.3 billion ($2.6 billion). It also entered into a €2.5 billion bridge credit facility to fund the acquisition, and the NSX (Brazil) acquisition was expected to close in May 2025.
02—Key points
Key Highlights
- Revenue rose to $3,665 million from $3,397 million, and net income was $335 million versus a net loss of $177 million in the prior-year quarter.
- Net income was boosted by a $205 million fair value gain on the Fox Option liability, which moved other income to $216 million from a $174 million expense.
- Adjusted EBITDA grew to $616 million from $514 million, with Adjusted EBITDA Margin at 16.8% versus 15.1%.
- U.S. segment revenue increased 18% to $1,666 million and Adjusted EBITDA rose to $161 million from $26 million; International revenue was $1,999 million, up 1%.
- Operating cash flow declined to $188 million from $337 million, and cash and cash equivalents were $1,537 million at March 31, 2025.
- Subsequent to quarter end, Flutter completed the approximately $2.6 billion acquisition of Snaitech on April 30, 2025 and signed a €2.5 billion bridge credit facility to fund it.
- Material weaknesses in internal control over financial reporting were not remediated as of March 31, 2025, and disclosure controls were concluded to be not effective.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Flutter Entertainment kept $0.09.
- Revenue$3.67B100.0%
- Cost of revenue−$1.96B53.4%
- Gross profit$1.71B46.6%
- Operating costs−$1.49B40.5%
- Operating income$223.0M6.1%
- Interest, other & tax$112.0M3.1%
- Net income$335.0M9.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.67B$3.40B | +7.9% |
| Cost of Revenue | $1.96B$1.79B | +9.1% |
| Gross Profit | $1.71B$1.60B | +6.5% |
| R&D Expenses | $215.00M$190.00M | +13.2% |
| Operating Income | $223.00M$124.00M | +79.8% |
| Interest Expense | $103.00M$126.00M | −18.3% |
| Net Income | $335.00M-$177.00M | +289.3% |
| EPS (Basic) | $1.59$-1.10 | +244.5% |
| EPS (Diluted) | $1.57$-1.10 | +242.7% |
| Shares Outstanding (Basic) | 178.00M178.00M | 0.0% |
| Shares Outstanding (Diluted) | 180.00M178.00M | +1.1% |
05—Questions
Frequently Asked Questions
Why did net income swing from a loss to a profit?
Operating profit increased to $223 million from $124 million, but the larger driver was other income of $216 million, primarily a $205 million fair value gain on the Fox Option liability, compared with a $184 million loss on that liability in the prior-year quarter.
How did the U.S. and International segments perform?
U.S. revenue grew 18% to $1,666 million, with Adjusted EBITDA of $161 million versus $26 million. International revenue rose 1% to $1,999 million, and its Adjusted EBITDA was $518 million, down from $524 million.
What acquisitions and financing were announced after quarter end?
On April 30, 2025, Flutter completed the acquisition of Pluto (Italia) S.p.A., which owns Snaitech, for about €2.3 billion ($2.6 billion). On April 29, 2025, it entered into a bridge credit agreement for a €2.5 billion senior secured first lien term loan, maturing April 29, 2026 with two six-month extension options. The NSX acquisition in Brazil was expected to close in May 2025.
Is the company generating less cash from operations?
Yes. Net cash from operating activities was $188 million compared with $337 million in the prior-year period. The filing attributes the decline mainly to a $220 million outflow in player deposit liabilities due to timing of sports events and a $210 million outflow in other liabilities, including a retention bonus payment related to the Singular acquisition.
What control and legal risks does the filing disclose?
The company states that disclosure controls were not effective as of March 31, 2025, because material weaknesses identified in the 2024 Annual Report had not been remediated. In India, the DGGI has issued GST notices to Junglee and PokerStars India, with a total of ₹198.5 billion ($2.3 billion) cited, and no liability has been accrued while the Supreme Court considers the matter.
06—Continue