Topic overview
In brief
- Peter Jackson will resign as group chief executive of Flutter at the end of September 2026.
- Flutter has cut its sales and earnings forecasts due to declining U.S. sales and increased investments.
- The company is set to miss its annual profit targets, leading to concerns among investors.
Summary
In the United Kingdom, Flutter Entertainment, the parent company of Paddy Power, announced that its long-serving chief executive, Peter Jackson, will resign at the end of September 2026. Jackson has been at the helm for eight years, during which he oversaw significant expansion, particularly in the U.S. market through the FanDuel sportsbook. His departure comes as the company faces challenges, including a reduction in sales and earnings forecasts for the year, which have been attributed to declining U.S. sales and increased investments in the region. Flutter's adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) is expected to fall short of previous expectations by $210 million, leading to a revised target of $1.97 billion for the year.
The company reported a 45% drop in group adjusted Ebitda to $508 million for the first half of 2026, with U.S. revenues declining by 6% to $1.68 billion. This decline is linked to a 15% fall in the sportsbook division, which had previously benefited from favorable sports results a year earlier. Despite these challenges, Flutter noted a 3% increase in total group revenues to $4.3 billion, driven by a 10% growth in its international market. The company also indicated that early trading in the third quarter was better than expected, buoyed by strong engagement during the World Cup knockout stages.