Flutter cuts 2026 group revenue guidance by $395 mln to $17.91 bln midpoint
Company lowers 2026 adjusted EBITDA guidance by $210 mln to $2.655 bln midpoint
Flutter targets $500 mln gross cost savings by 2029 under new cost transformation phase
Overview
UK online sports betting and iGaming operator's Q2 revenue rose 3%, beating analyst expectations
Adjusted EPS for Q2 fell sharply and missed analyst expectations
Company reported $296 mln net loss, driven by lower segment profitability and increased tax provisions
Result Drivers
FIFA World Cup engagement - Co said strong customer engagement during the FIFA World Cup supported revenue growth, particularly in iGaming and sportsbook
M&A impact - Acquisitions, including Snai and Betnacional, contributed to revenue growth but increased interest expense and depreciation
Higher taxes and marketing spend - Increased UK gaming taxes and elevated marketing costs, especially for the FIFA World Cup, reduced segment profitability
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy"
Wall Street's median 12-month price target for Flutter Entertainment PLC is $136.00, about 29.6% above its August 4 closing price of $104.96
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
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