Flutter reports $1.15bn Q3 net loss after $873m Brazil charge

Flutter Entertainment's third-quarter loss grew, driven by a sizeable non-cash charge connected to its Brazilian business. The operator's net losses rose to $1.15bn in the three months ended 30 September, against $789m a year earlier. Brazil was the main source of the damage, as Flutter booked a non-cash charge of $873m after challenging trading conditions and a government move to ban online sports betting.

Brazil weighed heavily on Flutter's quarter, with revenue from the market down 31% year-on-year to $60m amid weaker trading and regulatory disruption. Operations were formally closed on 26 September, after a provisional measure prohibited online betting and gaming. Because the future regulatory framework was unclear, Flutter had to revalue its Brazilian assets, which produced the $873m non-cash charge. The Betfair operation in the country was also shut down, and Betnacional would be the sole focus if the market reopens.

International adjusted EBITDA fell 14% to $435m. The Brazil ban and the 40% Remote Gaming Duty increase in the UK were reportedly the causes.

In the US, revenue grew 6% to $1.46bn. The US averaged 3.9 million monthly players, up 12%, while sportsbook handle rose 13% year-on-year. FanDuel Predicts averaged 66,000 monthly players during the quarter, with $119m in betting volume. The company credits its Crypto.com partnership and the FanDuel One App rollout with improving FanDuel Predicts.

Flutter announced job cuts last month across the UK, Ireland, Portugal and Romania, with more than 1,400 roles expected to be cut. Sky Bet's office in Malta was closed as part of the layoffs, less than a year after it opened.

Chief executive Dan Taylor, who is reporting his first quarterly results after taking the role last month, named US leadership and prediction markets as ongoing top priorities. Taylor said: "I am confident our actions will make Flutter a stronger business in the long term."