Sportsbet returns to growth but Flutter results fall short of expectation

A 6 per cent growth in active customers during the spring carnival helped Australia’s largest online bookmaker, Sportsbet, put a difficult period behind it and increase its revenue across the final quarter of 2025.

Sportsbet’s betting revenue had been in decline alongside the broader Australian wagering market for some time, but, according to the quarterly report of parent company Flutter, the drop off in racing revenue has stabilised while sports performance remains strong.

The revenue for the entire Asia-Pacific aspect of Flutter’s business fell 10 per cent, or US$41 million, compared to the same period last year, driven by the exit from its Indian IGaming platform.

Overall international revenue for the Flutter Group, which includes all markets outside of the US, grew by 19 per cent to US$2.6 billion for the quarter, with EBITDA up six per cent to US$588 million. That was primarily driven by a 118 per cent increase in revenue from southern Europe and Africa.

Globally, Flutter grew its active monthly players for the quarter to more than 15 million, up 3 per cent on the same period last year, while overall revenue surged to US$ 4.7 billion for the quarter and US$16.4 billion for the entirety of 2025.

Adjusted EBITDA for the quarter grew to US$833 million, up 27 per cent for the quarter, while the annual figure was US$2.8 billion, a growth of 21 per cent on 2024.

However, those numbers, impacted by weaker US results, fell short of market expectations, which had predicted an EBITDA figure of closer to US$900 million.

“It’s fair to say, not everything went our way in the fourth quarter,” Flutter CEO Peter Jackson told CNBC.

Flutter shares fell seven per cent on the announcement.

However, Jackson said that the growth of prediction markets such as Kalshi and Polymarket in the US wasn’t to blame, saying the company had found no evidence that prediction markets are cannibalising the sportsbook business.   

“Flutter delivered strong 2025 results. Our unparalleled global scale and ongoing product innovation helped us reach almost 40 million customers across our portfolio of market-leading, local hero brands during the year,” Jackson said.

“Looking ahead, we have a clear plan in place to navigate recent US trends and we continue to see a significant runway for growth in a dynamic market as we increasingly convert our scale, technology and customer proposition into sustained profitability.

“With a pivotal calendar of global sporting and iGaming moments ahead, including the World Cup, we are focused on capturing the full breadth of these opportunities in 2026 and beyond.”