Flutter CEO Makes Priorities Clear After Q3 Results Note Higher Costs

Dan Taylor has clarified his priorities to put gambling giant Flutter on the right path moving forward following the release of the company’s Q3 2026 results today. Despite being appointed as Flutter Group's CEO partway through the quarter after assuming the role from Peter Jackson last month, Taylor is adamant he can steer the ship around.

However, revenue growth generated during the latest quarter was offset by higher costs. And Taylor has admitted this needs to be brought under control to make the company more streamlined and efficient.

Snapshot of finances

At first glance, there were some encouraging findings in Flutter’s Q3 results. The Paddy Power, Betfair, and Sky Bet owner revealed a 2% uptick in group sportsbook revenues, and that was driven by a strong underlying performance from its UK and Ireland (UKI) operation, contributing 4% growth.

Record engagement during the World Cup helped deliver good sportsbook handle, while a strong cross-sell initiated double-digit iGaming revenue growth. That said, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 25% to £266 million. This was partly attributed to the UK tax gaming increase as well as a decline in Brazil, compounded by the country’s ban on iGaming.

In addition, the company’s net loss stretched to £844m. Although that particular blow was softened by a £70m tax benefit, the cost of sales was up 10% year-on-year (YoY), which will have caused some concern.

Making some tough decisions

Ahead of the recent Autumn Budget delivered by Chancellor John Healey, Flutter announced it was carrying out a full company restructure, confirming it was shedding up to 1,400 jobs across the UK&I division. On top of that, the company transferred many of Sky Bet’s Malta staff to Gibraltar as a cost-saving measure.

These decisions taken by Flutter were tough, but they were directly related to the swathe of tax raids carried out by the UK government. In April this year, remote gaming duty (RGD) paid on online casino bets almost doubled from 21% to 40% of gross gambling yield (GGY), while general betting duty paid on online sports bets will climb from 15% to 25% in April 2027, with horseracing exempt.

While the Machine Games Duty (MGD) rate rose by 5% to 25% instead of 40% as previously envisaged, UK betting operators have had to mitigate the tax impact. Although city analysts recently adjusted Flutter’s rating from ‘neutral’ to ‘buy’, suggesting a turnaround in fortunes, the company has been forced to absorb excessive share pressure, with its share price tanking by 60% over the past year.

Unlocking more value

While revenue growth, broadly speaking, was flat YoY, Taylor admitted he is confident that Flutter can deliver against its target of 5-10% annual growth. And he maintains that unlocking greater value and being more robust in its approach remains key.

Discussing his intentions, Taylor said: “Our Q3 performance gives me confidence that we are moving in the right direction. Our international business continues to benefit from strong underlying momentum and the impact of our cost transformation programs.

“Looking ahead, our priorities are clear: build on our US leadership, capture the prediction markets opportunity, unlock more value from our International portfolio and simplify the way we operate. Delivering against these priorities will require faster execution, tough decisions and disciplined investment. I am confident our actions will make Flutter a stronger business in the long term.”