Flutter Entertainment, the parent company of Paddy Power Betfair, is experiencing a significant stock rally following stellar Q2 2025 results that surpassed analyst expectations. Revenue climbed 16% year-over-year to $4.19 billion, while EBITDA surged 25% to $919 million, driven by robust performance in the U.S. market—particularly through its FanDuel brand, where revenue grew 17% and EBITDA jumped 54%. Multiple investment banks raised their price targets, citing improved profitability and structural gains in market share. Additionally, Flutter announced a $245 million share buyback, part of a broader $5 billion capital return program aimed at enhancing shareholder value.
Strategic Growth Amid Tax Headwinds
Despite a sharp decline in net profit due to higher taxes and one-time effects, management raised full-year guidance, projecting $17.3 billion in revenue and $3.3 billion in EBITDA. The company’s international segment also showed strength, with 15% revenue growth. Analysts remain bullish, with price targets ranging up to $393, suggesting further upside from current levels. The dual catalysts of strong earnings and aggressive buybacks position Paddy Power Betfair as a standout in the gaming sector.
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