LONDON (ShareCast) - (Sharecast News) - Shares in gaming and gambling giant Flutter Entertainment came under pressure on Thursday, after adverse US sports results weighed on first-quarter numbers.
The owner of Paddy Power, FanDuel, Sportsbet and Sky Betting & Gaming, among others, posted an 8% jump in group revenues, to $3.7bn, in the three months to March end.

Within that, US revenues jumped 18% year-on-year, to $1.67bn, while international posted a 1% uptick at $2.0bn.

Group adjusted earnings per share surged 51% at $1.59.

However, Wall Street has been expecting group revenues closer to $3.9bn and adjusted EPS of $1.95.

In the US, Flutter enjoyed a strong Super Bowl before being hit by a slew of customer-friendly college basketball results during the March season.

As at 1000 BST, Flutter's London-listed shares were trading 2% lower at 17,910p. In the US, the stock was down 2% in pre-market trading.

Flutter, which has its registered head office in Dublin, switched its primary listing to New York last year, in line with its market-leading position in the US.

Peter Jackson, chief executive, said February's Super Bowl LIX had delivered "record-breaking volumes, customer engagement and sports outcomes for FanDuel".

But he continued: "Overall, however, US sports results were customer friendly in the first quarter, driven primarily by an unprecedented number of winning favourites during March Madness.

"The nature of sports results means that over time, outcomes will naturally fluctuate around the average. It is these ups and downs that makes sports so exciting and drives engagement."

The group tweaked its full-year guidance in light of the unfavourable US sports results.

But that was offset by an expected boost to revenues from favourable currency movements and contributions from the acquisition of Italy's Snai - which completed on 30 April - and Brazil's NSX, which is due to close this month.

Flutter now expects 2025 revenues to come in between $16.63bn and $17.53bn, compared to its previous range of $15.48bn to $16.38bn.

Group adjusted earnings before interest, tax, amortisation and depreciation and amortisation are forecast to come in between $2.96bn and $3.40bn. Flutter had previous forecast $2.94bn to $3.38bn for annual EBITDA.

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