iGaming News & Analysis

Flutter (PDYPY) Q3 Revenue $3.87B, Adjusted EBITDA Down 25% Under New CEO

Flutter's new CEO Dan Taylor reported third-quarter results with revenue at $3.87 billion, up 2% year over year but below Wall Street's $4 billion consensus. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) fell approximately 25% to $360 million, missing expectations. The company posted a net loss of $1.15 billion, including an $873 million non-cash impairment related to Brazil's ban on sports betting and online gaming. Taylor highlighted FanDuel's improving customer engagement as average monthly players in the U.S. rose 12%, with sportsbook bettors up 9% and bet counts increasing 15%. However, sportsbook revenue only grew 4% due to increased promotional spending. The company is investing more in marketing, including FanDuel Predicts, which saw a 271% surge in trading volume since July and added 140,000 new customers in October. Taylor emphasized ongoing plans to enhance customer experience and product mix to improve margins. Brazil's ban and intense industry competition are current challenges for Flutter. Taylor described the ban as disappointment but considered the impairment necessary for long-term positioning. About half of the U.S. population remains outside regulated sports betting markets, suggesting growth potential. Investors should note the significant impairment charges and lower-than-expected profitability metrics that weigh on Flutter's near-term financial performance.