Flutter Posts Third-Quarter Loss as Net Loss Tops $1 Billion

Flutter Entertainment has released its third-quarter results and lowered its annual forecasts. In the first period under new CEO Dan Taylor, group revenue rose 2% to $3.874 billion. In the same period last year, revenue was $3.794 billion.

US revenue was recorded at $1.4 billion. Revenue from international brands outside the US was flat at $2.4 billion. The company attributed this to gaming tax increases in the UK and the betting ban in Brazil.

Adjusted EBITDA fell from $478 million to $360 million. EBITDA from US operations dropped 94% to $3 million, while EBITDA from international operations fell 14% to $435 million. The net loss reached $1.148 billion. Most of the loss came from an $873 million impairment charge related to Brazil. This charge reflects the acquisition of a 56% stake in NSX's Betnacional brand and investments in Flutter Brazil operations.

As a result, the company lowered the midpoint of its group revenue forecast by $300 million to $17.61 billion, and reduced its adjusted EBITDA forecast by $160 million to $2.495 billion.

The third quarter also covered the final stages of the World Cup. The company reported high participation on many continents, especially in Europe and Asia. Customer participation in the UK and Ireland reached record levels. However, this came at a cost. Cost of sales rose 10% in both segments, reaching $903 million in US operations and $1.281 billion in international operations.