Flutter Lowers Annual Target After Brazil Exit and Sports Results

Flutter Entertainment lowered its full-year revenue and adjusted EBITDA expectations, citing the closure of the regulated market in Brazil and negative sports results in the third quarter.

Revenue reached $3.87 billion in the three-month period ending September 30, up 2% from the same quarter last year. However, adjusted EBITDA fell 25% to $360 million. The company's net loss widened to $1.14 billion.

Sports betting and iGaming revenues rose year on year across the group. The fastest growth was in the United States. Revenue from international operations held steady despite a decline in sports betting. Revenue growth was offset by higher costs, and earnings were hurt as a result.

Revenue in the United States rose 6% to $1.46 billion. Sports betting revenue increased 4% to $817 million. Handle for the period was $12.02 billion, which the company described as well above expectations. Retaining customers won during the World Cup was supported by opening the FanDuel Rewards program to all sports betting customers and by new features such as sharing. Player frequency rose 4%, and the number of bets increased 15%.

iGaming revenue grew 8% to $572 million. Player frequency rose 12%.

Dan Taylor was appointed CEO in the middle of the quarter, replacing Peter Jackson. Taylor said Flutter is moving in the right direction.