Flutter Reports $1.15 Billion Loss, Cuts Profit Outlook

Paddy Power owner Flutter Entertainment reported a net loss of $1.15 billion (£840 million) for the three months ending September 30. This is a big increase from a loss of $789 million (£581.5 million) during the same period last year. The company said this downturn was due to higher taxes in the UK, better outcomes for bettors in sports, and a ban on online gambling in Brazil.

Key Details

In its UK and Ireland division, Flutter's revenue from sports betting fell nearly 7% to $309 million (£275 million), down from $330 million a year earlier. However, overall revenues for the division rose 4% to $889 million (£675 million). This growth was driven by an increase in online casino games. The company noted that more teams and horses backed by customers won, which contributed to the revenue decline.

Flutter revised its annual outlook. It now expects underlying earnings to fall by 12% to $2.5 billion (£1.82 billion). It also expects sales to increase by 7% to $17.61 billion (£12.84 billion). This change reflects the impact of sports results and the ongoing effects of the Brazilian gambling ban. The company announced plans to cut about 1,400 jobs, which is 15% of its workforce in the UK and Ireland. This is part of a restructuring effort to manage rising regulatory costs.

Background

New CEO Dan Taylor, who took over in October, stressed the need to focus on investment and cost savings. He also paused a share buyback program. He stated, "Our priorities are clear: build on our US leadership, capture the prediction markets opportunity, and unlock value."

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Based on reporting by: standard.co.uk, irishtimes.com