Flutter's New CEO Seeks Turnaround through Product Improvements and Customer Rewards

Flutter's new CEO Dan Taylor has set his sights on boosting profits through improved products and customer rewards following a disappointing earnings report.

Taylor issued his first earnings report as CEO last Wednesday, revealing that third-quarter revenue and adjusted earnings before interest, taxes, depreciation and amortization fell short of Wall Street expectations. The company's stock price has suffered significantly, plummeting over 60% year to date. Despite this, Taylor remains optimistic about the future direction of the business.

In a bid to turn things around, Taylor points to recent changes made to the product offering as a key factor in getting the company back on track. He emphasizes the importance of delivering exceptional customer experiences and meeting their needs through tailored propositions. This approach is already starting to yield positive results, with early customer numbers showing an upward trend.

FanDuel's launch of a nationwide rewards program in September has been particularly successful, resonating well with customers according to Taylor. The initiative appears to be paying off, with average monthly players on the U.S. sportsbook rising 9% and bet counts increasing by 15% during the third quarter.

Flutter's new leadership is prioritizing customer experience through continued investments in its products and services. The company aims to improve structural margins by changing the mix of offerings that customers use, which Taylor believes will yield long-term benefits.

The cost of sales as a percentage of revenue is expected to remain high at 58% for both 2026 and 2027, partly due to increased media spend on promoting FanDuel Predicts. This platform competes directly with other prediction markets like Kalshi and Polymarket.

FanDuel's trading volume has seen an astonishing surge of 271% since July, a testament to the company's growing popularity. Meanwhile, the FanDuel Predicts app added a significant 140,000 new customers in October alone.

The US market still holds vast potential for Flutter, with half the country lacking access to regulated sports betting and 90% not having access to online gaming. Taylor argues that expanding legal markets is not a partisan issue, as it brings consumer protections and tax revenue to states.

Flutter's third-quarter results showed an adjusted loss of 18 cents per share, beating analyst expectations but still below consensus forecasts. Revenue rose by 2% to $3.87 billion, while adjusted EBITDA fell approximately 25% year-over-year to $360 million.

Flutter's financial woes continued as the company reported a net loss of $1.15 billion for the period, largely due to an $873 million non-cash impairment related to Brazil's ban on sports betting and online gaming.

The company attributed this significant charge to Brazil's provisional measure in September, which caught them off guard despite their initial disappointment. To mitigate the impact, Flutter is taking a long-term approach by setting aside funds to adapt to changing market conditions.

As a result of these challenges, combined with unfavorable sports results, Flutter revised its full-year revenue forecast downward by $300 million to $17.61 billion and lowered its 2026 adjusted EBITDA outlook by $160 million to nearly $2.5 billion.