Flutter pauses share buybacks as annual forecasts fall
Flutter Entertainment suspended share repurchases and lowered its annual revenue and adjusted earnings forecasts after a weaker third quarter. Revenue grew, but adjusted operating earnings fell and the net loss widened. An impairment tied to Brazil weighed on the betting group, which is prioritising investment in its operations and reducing debt.
Economics & Markets··Morning
Buybacks pause while leverage rises
Flutter Entertainment, the sports betting and online casino group, has paused its share repurchase programme while prioritising investment in its existing operations and debt reduction. Its third-quarter results showed leverage of 4.6 times, up from 3.7 times at the previous year end. Management lowered its annual revenue and adjusted earnings forecasts alongside the capital allocation change.[1], [2]
The midpoint of annual revenue guidance fell by 300 million dollars to 17.61 billion dollars. The midpoint for adjusted earnings before interest, tax, depreciation and amortisation was cut by 160 million dollars to 2.495 billion dollars. Flutter attributed the changes to unfavourable sports results and conditions in Brazil. New financing arrangements extended loan maturities to 2032.[1]
Brazil impairment weighs on the loss
Group quarterly revenue increased to 3,874 million dollars from 3,794 million dollars a year earlier. The net loss widened to 1,148 million dollars from 789 million dollars. Adjusted earnings before interest, tax, depreciation and amortisation declined by 25 per cent, falling from 478 million dollars to 360 million dollars. Operating cash generation edged up from 209 million dollars to 211 million dollars.[1]
Flutter recognised an 873 million dollar noncash impairment related to Brazil. After tax, the charge attributable to its 56 per cent ownership interest was 537 million dollars. Legal loss contingencies increased by another 105 million dollars. International revenue remained broadly flat at 2,419 million dollars, while the division’s adjusted earnings fell by 14 per cent to 435 million dollars.[1]
US revenue expands but adjusted earnings fall
US revenue rose by 6 per cent to 1,455 million dollars. Sportsbook revenue increased by 4 per cent and online casino revenue by 8 per cent. The US adjusted earnings measure fell by 94 per cent to 3 million dollars. Flutter cited investment in prediction markets and expansion spending, among the costs affecting the division.[1]
Active sportsbook customers increased by 9 per cent and the amount wagered grew by 13 per cent. In the international business, cost measures partly offset higher UK gambling taxes. New chief executive Dan Taylor also set out restructuring in the UK and Ireland operations as part of the group’s response to the operating environment.[1]
