Paddy Power owner Flutter cuts outlook after billion-dollar loss

Summarised from 2 outlets · Updated 4 Nov, 16:38 · Archive

Gambling giant Flutter, which owns Paddy Power and Betfair, has slashed its full-year guidance after reporting quarterly losses of 1.15 billion dollars.

Flutter, the New York-listed gambling giant that owns Paddy Power and Betfair, has cut its full-year guidance after reporting a quarterly loss of 1.15 billion dollars for the three months to the end of September. This compared to losses of 789 million dollars a year earlier. The group's international arm, including the UK, suffered a 14% drop in underlying earnings to 435 million dollars over the quarter.

Flutter blamed the loss on three factors: higher taxes in the UK, punter-friendly football results and Brazil's betting ban. The Government increased remote gaming taxes from 21% to 40% in last year's autumn budget, hitting profit margins.

The company now expects underlying earnings to fall by 12% to 2.5 billion dollars for the full year and sales to rise by 7% to 17.61 billion dollars. This marked a reduction from previous guidance. Last month, Flutter announced it would cut around 1,400 jobs in the UK and Ireland – 15% of its 9,000-strong workforce in the division – as part of a major restructuring in response to the tax increases.

Paddy Power owner Flutter cuts outlook after billion-dollar loss — Image: Independent Business

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How it is being reported

Paddy Power owner Flutter cuts outlook after hefty quarterly lossThe group recently said it would cut around 1,400 jobs in the UK and Ireland as part of an overhaul after UK gambling tax hikes.Independent Business · 4 Nov, 16:14
Paddy Power owner Flutter cuts outlook after hefty quarterly lossThe group recently said it would cut around 1,400 jobs in the UK and Ireland as part of an overhaul after UK gambling tax hikes.Evening Standard · 4 Nov, 16:14

In this story: Flutter · Paddy Power · Betfair · UK · Ireland · Brazil

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