Flutter Entertainment has announced a reduction in its FY2026 guidance, impacted by unfavorable sports outcomes and the recent ban on betting in Brazil. In its third-quarter results, published on Wednesday, the company reported a net loss of $1.15 billion for the quarter ending September 30.
Despite a slight revenue increase of 2% to $3.87 billion, Flutter faced $873 million in non-cash impairment charges tied to its Brazilian operations, resulting in a significant loss compared to the $789 million reported in Q3 2025.
Following the closure of Brazil’s regulated market, implemented by President Lula at the end of September, $537 million of the company's post-tax impairment charge stemmed from its 56% ownership in Flutter Brazil. This business was established in 2022 when Flutter acquired a stake from NSX Group, which had previously owned Betnacional for $356 million.
In light of the ban, Flutter has shut down its Betfair operation in Brazil, now consolidating its presence under the Betnacional brand as its exclusive entity in the market.
Flutter’s adjusted EBITDA for Q3 fell 25% to $360 million. The company has adjusted its revenue guidance downward by $300 million to a midpoint of $17.61 billion for the full year, and it has also cut its full-year adjusted EBITDA guidance by $160 million to $2.495 billion.
In a letter to shareholders, CEO Dan Taylor, who succeeded Peter Jackson on October 1, expressed disappointment over the ban. "In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spending," he stated. Taylor acknowledged the potential of Brazil as an attractive market but stressed the need for financial discipline in capital deployment as regulations develop.
On the earnings call following the Q3 release, Taylor emphasized that the company is prepared to resume operations if the market allows.
Regarding its FanDuel brand in the U.S., Flutter reported a 6% revenue increase to $1.46 billion, bolstered by a 4% rise in sportsbook revenue and an 8% growth in iGaming. However, adjusted EBITDA for FanDuel plummeted 94% to $3 million, as Flutter invested in expanding its prediction market offerings and launched operations in Alberta, Canada, earlier this year.
Taylor remarked on the importance of improving Flutter's U.S. market position amid increasing competition, highlighting recent initiatives such as the FanDuel Rewards program that have helped capture market share. He observed, "I strongly believe we have the best assets to capture the significant opportunity in the increasingly competitive North American market."
Prediction markets, particularly the newly launched FanDuel Predicts, present notable growth potential, with average monthly players reaching 66,000 during Q3, a 39% increase from the previous quarter. Flutter plans continued investment in this product area in the coming year.
In the UK and Ireland, Flutter faces challenges as well, with a restructuring initiative that could see 1,400 jobs slashed due to a 14% drop in adjusted EBITDA from its International segment. This decline is mainly attributed to the UK’s remote gaming duty hike from 21% to 40%, which took effect on April 1.
Despite these challenges, the UK and Ireland segment reported a 4% revenue increase to $889 million, driven by a 12% rise in iGaming revenue, offsetting a 6% decrease in sportsbook revenue. "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," Taylor stated.
Flutter's overall geographical performance showed strong growth in Southern Europe and Africa, with a 13% revenue increase to $836 million, where iGaming saw a 17% rise. Its revenue from Central and Eastern Europe also improved by 10% to $166 million, primarily due to market share gains in Georgia, Serbia, and Armenia. However, revenue from the Asia Pacific region declined by 4% to $349 million following the closure of the real-money gaming market in India.
Looking ahead, Taylor outlined plans for Flutter’s next phase, which will focus on streamlining operations to enhance efficiency. He projected an additional $500 million in gross operating cost and capital expenditure savings by 2029, targeting improvements through AI adoption, organizational restructuring, and technological simplification. "Realizing 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," Taylor concluded.
