Flutter Entertainment revealed a significant net loss of $296 million for the second quarter of 2026. This downturn is primarily linked to increased gaming duties in the UK, sluggish growth in the US sportsbook sector, and heightened investment costs. Despite this, the company's Group revenue edged up 3% year-over-year, reaching $4.33 billion. However, adjusted EBITDA saw a steep decline of 45%, totaling $508 million and contributing to a drop in profitability from 21.9% to 11.7%. The average monthly player count also fell by 11%, down to 14.3 million, influenced by Flutter's decision to exit the Indian real money gaming market due to regulatory challenges.
The US division of Flutter was particularly hard hit, reporting a 6% revenue decline to $1.68 billion. Revenue from sportsbooks plummeted by 15%, while iGaming saw a 14% decrease. Adjusted EBITDA for the US market fell to $119 million, reflecting a staggering 70% decline. Despite these challenges, FanDuel maintained a robust position, holding a 39% share in the sportsbook market and a 27% share in iGaming.
On a more positive note, Flutter's international operations reported increased revenue, rising by 10% to $2.64 billion, although adjusted EBITDA dropped by 19% to $476 million.
These results were announced as the company undergoes a leadership change; Peter Jackson will step down as chief executive on September 30, 2026, with Dan Taylor, currently the chief executive of Flutter International and president of the group, set to replace him starting October 1. Taylor's division reportedly generated revenues of $9 billion and adjusted EBITDA exceeding $2.2 billion in 2025. Following the results announcement, Flutter's shares fell by 11.5%, settling at $92.91. Analysts maintain a "moderate buy" consensus, with an average price target of $175.26 for the next 12 months.
