Flutter cuts EBITDA forecast by $160 mln — CNBC
Gambling operator Flutter has lowered its adjusted EBITDA forecast for 2026 by $160 million, to nearly $2.5 billion. The company also cut the midpoint of its annual revenue forecast range by $300 million, to $17.61 billion. The reasons were complications in Brazil and unfavorable sports betting results in the United States and international markets, CNBC reports.
Third-quarter financial results
In the third quarter, Flutter generated $3.87 billion in revenue, 2% more than a year earlier but below the approximately $4 billion expected by analysts surveyed by LSEG. Adjusted EBITDA declined by approximately 25% year on year to $360 million, also falling short of market expectations.
Adjusted loss was 18 cents per share, compared with the 28-cent-per-share loss forecast by analysts. The company’s net loss reached $1.15 billion. This included a non-cash asset impairment of $873 million, mainly related to Brazil, where sports betting and online gaming were banned in September.
Betting on FanDuel rewards
Flutter’s new CEO, Dan Taylor, who has led the company for five weeks, said he expects to improve profitability through product updates and more generous reward programs for FanDuel customers. In September, FanDuel launched a nationwide rewards program that, according to Taylor, has been well received by users.
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The average number of monthly players on FanDuel’s U.S. sportsbook service rose 9% in the third quarter, while the number of bets increased by 15%. Flutter’s total number of monthly users in the United States grew by 12%, including a 24% increase in the online gaming segment. At the same time, betting volume in the sportsbook business rose by 13%, while revenue increased by only 4%, as the company increased promotional spending.
Debt and development of the prediction platform
Flutter increased media spending to develop its FanDuel Predicts prediction platform, which competes with Kalshi and Polymarket. According to Taylor, trading volume on the platform has risen by 271% since July, and the app attracted 140,000 new customers in October.
The company does not yet plan to resume share buybacks. Taylor said Flutter has about 24 months to return its debt-to-EBITDA ratio to the target level of between two and 2.5 times. He named organic growth and debt repayment as priorities.
