Flutter Entertainment has cut its full-year guidance after third-quarter adjusted EBITDA fell 25% year on year to $360 million, with the shutdown of Brazil’s regulated betting market and unfavourable sports results overwhelming a modest increase in revenue. Group revenue for the three months to 30 September rose 2% to $3.87 billion.
The operator reduced the midpoint of its full-year revenue guidance by $300 million to $17.61 billion, and lowered its full-year adjusted EBITDA guidance by $160 million to $2.495 billion. Flutter attributed the downgrade to the closure of the Brazilian market and to unfavourable sports results across its US and International segments.
The quarter also produced a net loss of $1.15 billion, significantly wider than the $789 million loss recorded in the same period of 2025. That figure included $873 million of non-cash impairment charges relating to the group’s Brazilian business, of which $537 million of the post-tax charge was attributable to Flutter’s 56% stake in Flutter Brazil.
Brazil closure forces Betfair exit
Brazil’s regulated betting market was shut down in late September when President Luiz Inácio Lula da Silva issued a provisional measure banning betting. In response, Flutter closed its Betfair business in the country, leaving Betnacional as its sole remaining brand there. Flutter Brazil was formed last year through a deal in which the company paid $356 million to Betnacional owner NSX Group.
Dan Taylor, who replaced Peter Jackson as Flutter chief executive on 1 October, told shareholders in a letter that the company was “very disappointed” with the provisional measure. “In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend,” he wrote.
Taylor added: “With the right regulation, Brazil still has the opportunity to be an attractive market for us, however, we will remain disciplined in our deployment of capital as the regulatory environment continues to evolve.” On the post-results earnings call, he said Flutter was “ready to resume operating” should the Brazilian market return.
FanDuel earnings near zero as prediction market spend bites
US revenue through FanDuel rose 6% to $1.46 billion, with sportsbook revenue up 4% and iGaming up 8%. Divisional adjusted EBITDA, however, fell 94% to $3 million, which Flutter attributed to investment in its prediction market offering and to the July launch in the Canadian province of Alberta.
FanDuel Predicts, launched last December, averaged 66,000 monthly players across the quarter, a 39% rise on the previous quarter. Taylor said category-wide US media spending rose by more than 60% year on year in September and more than 50% in October, driven primarily by investment from prediction market operators. “It also puts pressure on some of our share of voice, and we need to be disciplined about how we spend our marketing dollars,” he said.
The chief executive said measures including the launch of the FanDuel Rewards programme had delivered “encouraging returns”, helping Flutter gain sportsbook market share. “I strongly believe we have the best assets to capture the significant opportunity in the increasingly competitive North American market,” he said. “However, we must reaffirm our US leadership position by operating at a faster pace, delivering relentless product innovation, and investing where we see the opportunity to deliver long-term value.”
UK tax rise weighs on International
UK and Ireland revenue increased 4% to $889 million, with iGaming revenue up 12% offsetting a 6% decline in sportsbook. Adjusted EBITDA from the International segment fell 14%, which Flutter attributed primarily to the near doubling of the UK’s remote gaming duty from 21% to 40%, effective 1 April this year.
Flutter announced last month a business restructure under which 1,400 jobs could be lost across its UK and Ireland operations. “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 said.
Elsewhere, Southern Europe and Africa revenue grew 13% to $836 million, powered by 17% iGaming growth in the region, while Central and Eastern Europe revenue rose 10% to $166 million on market share gains in Georgia, Serbia and Armenia. Asia Pacific revenue declined 4% to $349 million, which Flutter attributed to the closure of the real-money gaming market in India.
Taylor said Flutter expects to deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029 through AI adoption, organisational restructuring and technology simplification. “Flutter has an exceptional set of assets and opportunities,” he said. “Realising 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.”
This article was produced with AI assistance and reviewed under the GamblingZine editorial verification process.
Sources
- Flutter cuts FY26 guidance as Brazil exit and sports results hit Q3 earnings — Authoritative secondary source (published 2026-11-04)
Reporting verified against the sources above; retrieval timestamps are preserved in the editorial record.