Paddy Power owner Flutter has slashed its full-year guidance after slumping to a quarterly loss of over a billion US dollars just weeks after revealing plans to axe 1,400 jobs in the UK and Ireland .

The New York-listed gambling giant, which also owns Betfair , reported net losses widening to 1.15 billion dollars (£840 million) for the three months to the end of September from losses of 789 million dollars (£581.5 million) a year ago.

It said it was knocked by higher taxes in the UK, punter-friendly football results and Brazil’s betting ban.

The group revealed its international arm – including the UK – suffered a 14% drop in underlying earnings to 435 million dollars (£320.4 million) over the third quarter as profit margins were hit by the Government’s move in last year’s autumn budget to increase remote gaming taxes from 21% to 40%.

Flutter cut its annual outlook after the third quarter performance, saying it now expects underlying earnings to fall by 12% to 2.5 billion dollars (£1.82 billion) and sales…