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(Sharecast News) - Flutter Entertainment slumped on Thursday after it cut guidance for full-year revenue and adjusted EBITDA, partly due to unfavourable sports results, and announced the departure of Amy Howe, chief executive of its US business.
In the three months to the end of March, net income fell 38% from the same period a year earlier to $209m, while earnings per share were 22% lower at $1.23. Adjusted earnings before interest, tax, depreciation and amortisation were 2% higher at $631m and revenue was up 17% at $4.3bn.
Flutter said revenue benefited from M&A, a positive swing in year-over-year sports results and strong iGaming growth.
The company cut its FY 2026 guidance. It now expects group revenue of $18.305bn and adjusted EBITDA of $2.865bn at the midpoints, down from previous guidance of $18.4bn and $2.97bn respectively.
It said the downgrade accounts for unfavourable first-quarter sports results since guidance was issued, new state launch costs in Arkansas, and the change in reporting for PokerStars North America which has no impact from an overall group basis.
Flutter also announced managed changes "to best position the group for future growth".
Dan Taylor, currently chief executive of Flutter International, will assume the newly-created role of president of Flutter Entertainment, taking on oversight of the FanDuel business in addition to his existing responsibilities.
Meanwhile, Christian Genetski, president of FanDuel, will assume leadership of the FanDuel business following the departure of Amy Howe.
Chief executive Peter Jackson said: "Flutter's Q1 performance was encouraging, with group revenue increasing 17% yearonyear. This reflected positive signs from our US sportsbook improvement plan, where performance was ahead of our expectations in March. Group performance also benefited from our local hero acquisitions in Italy and Brazil, and excellent underlying SEA growth.
"While we made good progress during the quarter, there remains more to do to ensure the improving US sportsbook trends continue and we announced today the management changes we are making to best position us for our next phase of growth.
"The core fundamentals of our business remain strong, and I am confident that we have the right strategy, structure and global portfolio of local hero brands to capitalize on the significant long-term growth opportunity ahead. I look forward to further progress as we move through the rest of 2026."
At 1240 BST, the shares were down 3.7% at 7,415p.