Flutter posts $1.1bn Q3 net loss as guidance cut

Flutter Entertainment has reported a Q3 net loss exceeding $1bn, according to SBC News, as the NYSE-listed operator trimmed its full-year guidance in the first reporting period under new group chief executive Dan Taylor.

Group revenue rose 2% year-on-year to $3.874bn, up from $3.794bn in the same quarter last year. US revenue reached $1.4bn, while international revenue was flat at $2.4bn, a result Flutter attributed to UK gaming tax rises and the betting ban introduced in Brazil.

Adjusted EBITDA fell sharply, from $478m to $360m. The US division's adjusted EBITDA collapsed 94% to $3m, while international adjusted EBITDA dropped 14% to $435m.

The headline figure was a net loss of $1.148bn, up 46% on the prior year, driven largely by non-cash impairment charges of $873m tied to Brazil. That charge reflects Flutter's investment in the market, including its 56% stake in NSX's Betnacional brand and the build-out of Flutter Brazil's own operations.

That loss was the main reason Flutter lowered its guidance, trimming the midpoint for group revenue by $300m to $17.61bn and reducing its adjusted EBITDA outlook by $160m to $2.495bn.

The quarter did include the closing stages of the 2026 World Cup, which Flutter said drove strong engagement, particularly in Europe and Asia, with "record customer engagement" reported in the UK and Ireland. That boost came with higher costs, as cost of sales rose 10% in both divisions, to $903m in the US and $1.281bn internationally.

Across the group, sportsbook revenue edged up 1% to $1.78bn and iGaming revenue rose 3% to $1.95bn. International sportsbook revenue slipped 2% to $963m while US sportsbook revenue climbed 4% to $817m. International iGaming revenue was up 1% to $1.37bn, and US iGaming revenue rose 8% to $572m.

UK and Ireland hold up despite tax rise

Flutter's UK and Ireland business grew Q3 revenue by 4% to $889m, with double-digit iGaming growth offsetting a weaker sportsbook performance. UKI iGaming revenue increased 12% to $540m, helped by a 20% rise in average monthly players linked to World Cup cross-sell activity and the Big Drop jackpot promotion run through Sky Bet.

Flutter did not break out UKI earnings separately but said higher UK gaming duty, following a 40% increase to the Remote Gaming Duty, was the main drag on the International division's margin. The company recently restructured its UKI unit, cutting 1,400 jobs.

"Within UKI a strong performance across our portfolio of leading brands saw us take market share," Taylor wrote in his letter to shareholders, adding that the restructuring "positions us well to take market share in the post UK tax increase environment."

Taylor set out four priorities for the business: defending FanDuel's position alongside DraftKings in the US sportsbook duopoly, pursuing prediction markets after December's launch of FanDuel Predicts, and extracting more value from its wider international portfolio, which includes Snai and Sisal in Italy and Sportsbet in Australia alongside the Paddy Power and Sky Bet brands in the UK and Ireland.

The results land against a backdrop of a share price that has fallen more than 60% so far this year, leaving Taylor to steer Flutter through tax pressure in the UK and an uncertain regulatory future in Brazil.