Flutter Cuts 2026 Guidance After Brazil Exit and $1.15bn Q3 Loss

Flutter Entertainment has lowered its 2026 revenue and profit guidance after shutting down in Brazil and suffering a run of unfavourable sports results. The owner of FanDuel, Paddy Power and Sisal reported a third-quarter net loss of $1.15bn on 4 November, against $789m a year earlier.

It was the first set of results under new chief executive Dan Taylor, who took over from Peter Jackson on 1 October. Taylor used the release to announce a further $500m savings target by 2029 and to put share buybacks on hold.

How bad were Flutter’s Q3 numbers?

Group revenue grew 2% to $3.87bn in the three months to 30 September, but group adjusted EBITDA fell 25% to $360m. European Gaming reported that most of the loss is a one-off: $873m of non-cash impairment charges on the Brazilian business. Flutter owns 56% of Flutter Brazil, so $537m of that charge falls to the group. A further $105m went into legal loss provisions, mainly for a class action in Australia.

In the US, FanDuel customers bet $12.02bn on sports, 13% more than a year earlier. Heavier promotions meant sportsbook revenue rose only 4%, and US adjusted EBITDA fell 94% to $3m. iGaming Today noted that FanDuel Predicts averaged 66,000 monthly players, with $119m in trading volume.

What happened in Brazil?

A provisional measure issued on 25 September banned online sports betting and iGaming in Brazil. Flutter closed its operations the next day, shut Betfair there and kept Betnacional as its only Brazilian brand, to reopen if the regulatory framework becomes clear. Brazilian revenue fell 31% to $60m in the quarter.

International adjusted EBITDA fell 14% to $435m. The main cause was UK remote gaming duty rising from 21% to 40% in April. CasinoBeats said UK and Ireland online casino revenue grew to $540m while sportsbook revenue fell 6% to $309m. It added that a new 25% rate on remote betting arrives in April 2027. On Budget day Flutter estimated that the new taxes would cost it $540m of adjusted EBITDA in 2027, before any mitigation.

How far has guidance been cut?

The group’s revenue midpoint drops $300m to $17.61bn, and the adjusted EBITDA midpoint falls $160m to $2.495bn. According to European Gaming, sports results account for $230m of the revenue cut and the Brazil closure for $70m. Even so, Flutter still expects revenue growth of 7% this year, with adjusted EBITDA now set to fall 12%.

CasinoBeats pointed out that this follows an earlier cut on 5 August, when the revenue midpoint was lowered by $395m to $17.91bn and the EBITDA midpoint by $210m to $2.655bn. The share repurchase programme is paused for the foreseeable future. Cash will go into organic investment and debt reduction, and iGaming Today said key credit facilities were refinanced with maturities extended to 2032.

What is the $500m savings plan?

NEXT.io reported that Flutter is aiming for a further $500m in gross operating cost and capital expenditure savings by 2029. Taylor said the next phase of Flutter “will be more streamlined, to maximise the benefits of scale and ensure we can do non-customer-facing work once”.

He gave no detail on where the cuts will fall. A company spokesperson told NEXT.io the plan involves AI, removing layers and duplication, improving tech efficiency and aligning support functions. The target does not include savings already announced, among them cuts of up to 1,400 jobs across the UK, Ireland, Portugal and Romania and the closure of Sky Bet’s Malta operation. It is not clear whether the Brazil closure forms part of the new target.

Taylor said the quarter gave him confidence that Flutter is “moving in the right direction”, and that he is confident the actions “will make Flutter a stronger business in the long term”.