Flutter Entertainment lowered its full-year 2026 forecasts after reporting a US$1.15 billion net loss for the third quarter. The Brazilian betting ban, unfavourable sports results and higher UK gambling taxes contributed to the weaker financial performance.
Group revenue increased 2% year-on-year to US3.87 billion for the three months ended September 30. However, adjusted EBITDA fell 25% to US360 million, while the net loss widened from US$789 million a year earlier.
The results included US873 million in non-cash impairment charges relating to Brazil, of which US537 million was attributed to Flutter’s 56% stake in Flutter Brazil. The business was established through the acquisition of Betnacional owner NSX Group for US$356 million.
Flutter reduced its full-year revenue guidance midpoint by US300 million to US17.61 billion and lowered its adjusted EBITDA forecast by US160 million to US2.495 billion.
Dan Taylor, who replaced Peter Jackson as CEO on October 1, said:
“It is a privilege to take on the role of Flutter CEO. I know this business and the industry well, and I have a clear view of our strengths, where we need to improve, and where the biggest opportunities lie.”
Brazil Shutdown Weighs on Financial Results
President Luiz Inácio Lula da Silva’s decision to suspend Brazil’s regulated betting market in September forced Flutter to close its Betfair operation. Betnacional remains its sole brand in the country.
The company has also paused discretionary and uncommitted spending while assessing the regulatory situation.
In his shareholder letter, Taylor expressed disappointment with the government’s decision but said Flutter remained prepared to return if the market reopened.
“In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend,” Taylor said.
“With the right regulation, Brazil still has the opportunity to be an attractive market for us, however, we will remain disciplined in our deployment of capital as the regulatory environment continues to evolve.”
FanDuel Grows as Prediction Markets Expand
Flutter’s US business generated US$1.46 billion in revenue, up 6% year-on-year. Sportsbook revenue increased 4%, while iGaming grew 8%.
However, FanDuel’s adjusted EBITDA dropped 94% to US$3 million, partly reflecting investment in its prediction market product and the launch of its Alberta operations in Canada.
FanDuel Predicts, introduced in December 2025, averaged 66,000 monthly players during Q3, a 39% increase from the previous quarter.
Taylor sees prediction markets as an opportunity for Flutter, although their growing advertising budgets are creating additional competition for media spending.
He said Flutter had observed limited effects on betting activity among existing customers, citing research indicating that traditional sportsbooks retain a stronger customer proposition.
Category-wide media spending increased more than 60% year-on-year in September and over 50% in October, primarily because prediction market operators increased their advertising investment.
Taylor said in the earnings release (pdf):
“I strongly believe we have the best assets to capture the significant opportunity in the increasingly competitive North American market. However, we must reaffirm our US leadership position by operating at a faster pace, delivering relentless product innovation, and investing where we see the opportunity to deliver long-term value.”
UK and Ireland Absorb Higher Tax Costs
Flutter’s UK and Ireland revenue increased 4% to US889 million. Online gaming grew 12% to US540 million, offsetting a 6% decline in sportsbook revenue.
The improvement reflected a 20% increase in average monthly players, supported by World Cup engagement and Sky Bet’s Big Drop jackpot promotion.
However, the UK’s remote gaming duty increase from 21% to 40%, effective April 1, has put additional pressure on the International division’s profitability.
Flutter recently announced a restructuring that could result in 1,400 job losses across its UK and Ireland operations.
Taylor said:
“We believe this right-sizes the UKI business going forward and positions us well to take market share in the post UK tax increase environment.”
Southern Europe and Africa recorded 13% revenue growth to US836 million, supported by a 17% increase in iGaming. Central and Eastern Europe revenue rose 10% to US166 million, with market share gains in Georgia, Serbia and Armenia.
Asia-Pacific revenue fell 4% to US$349 million following the closure of India’s real-money gaming market.
Across the group, sportsbook revenue increased 1% to US1.78 billion, while iGaming revenue rose 3% to US1.95 billion. International sportsbook revenue declined 2% to US963 million, while US sportsbook revenue grew 4% to US817 million.
Taylor Targets US$500 Million in Savings
Taylor has outlined four priorities for Flutter: strengthening its US position, developing prediction markets, improving its international portfolio and simplifying the operating structure.
The company aims to achieve an additional US$500 million in gross operating cost and capital expenditure savings by 2029, using AI adoption, restructuring and technology simplification.
Its international portfolio includes Paddy Power and Sky Bet in the UK and Ireland, Snai and Sisal in Italy, Sportsbet in Australia and Betfair across several markets.
Taylor said:
“Flutter has an exceptional set of assets and opportunities. Realising their full potential will require hard choices, faster decisions and strong execution.
“I know confidence is earned through delivery and that is what I am focused on.”