Flutter Entertainment reported third-quarter revenue of $3.874 billion, up 2% year over year, as US revenue grew 6% and international revenue was flat. Adjusted EBITDA fell 25% to $360 million, while the company posted an adjusted loss of $0.18 per share, against analyst expectations for earnings of $0.35 per share. Results included a $873 million non-cash impairment related to Brazil.
The company said adjusted EBITDA was pressured by investment in growth initiatives, higher UK gaming taxes and unfavorable sports results. US revenue increased, but adjusted EBITDA in the segment dropped 94%. Average monthly players declined 3% across the group, with 12% growth in the US offset by an 8% decrease internationally. Free cash flow, including capital expenditure and excluding player funds, was negative $91 million, compared with negative $117 million a year earlier.
Flutter’s presentation highlighted improving engagement at its US sportsbook. The company reported year-over-year third-quarter growth of 9% in average monthly players and 13% in handle, reversing declines in both metrics in the first quarter. It also cited a 4% increase in player frequency, a 15% rise in bet count and a seven-percentage-point improvement in customers’ perception of its generosity.
Product initiatives included a rewards program that reached all customers on September 1, with 88% of users returning within 24 hours, and improvements to cashout and bet sharing. More than 20% of active NFL users shared bets, according to Flutter. The company said its development pace for the US sportsbook was the fastest in its history.
Flutter also described Prediction markets as a growth opportunity. It said it was on track to generate $50 million in revenue and $40 million in adjusted EBITDA from market-making activities. Volume more than doubled quarter over quarter, and the company said it was acquiring customers at materially lower cost than in its traditional sportsbook business. Planned product work includes expanding sports markets and adding features for tracking and sharing trades and winnings.
Performance varied across international markets. South East Asia revenue grew 13%, while UK and Ireland revenue increased 4%, supported by 12% growth in iGaming. Brazil revenue fell 31% before operations were suspended following regulatory actions. Australia and the Pacific declined 4%, while Central and Eastern Europe grew 10%.
Italy was a bright spot: Flutter said its online market share reached 32.1%, 1.4 percentage points ahead of the second-place operator. In the UK and Ireland, average monthly players rose 12% overall, with growth across Paddy Power, Sky Bet and Sky Gaming, Betfair and Tombola.
The company set a $500 million target for a second phase of cost transformation, following a $300 million first phase and $200 million in UK tax mitigation. Its plans include changes to technology services, organizational processes and procurement, as well as the use of AI in product development and automation. Flutter said around 80% of FanDuel code is now AI-driven.
Flutter also reduced its full-year 2026 guidance. It now expects revenue of $17.61 billion, $300 million below its previous forecast, and adjusted EBITDA of $2.495 billion, a reduction of $160 million. The company raised its estimate for transaction, restructuring and integration costs by $120 million to about $620 million.
The presentation cited continued promotional spending, flat US net revenue margins and uncertainty around Brazil among the challenges ahead. Share buybacks remain paused as Flutter focuses on reducing leverage toward a target range of 2.0 to 2.5 times. The company said it expects continued US sportsbook share gains and international EBITDA growth toward the high end of its 5% to 10% range.
Sources: Investing.com News.