On May 31, the New York Stock Exchange listing of Flutter Entertainment will become its primary listing, according to a report by Jefferies Equity Research analyst James Wheatcroft. He wrote that Flutter reiterated its earnings guidance for the 2024 fiscal year and that no material change was expected before the company’s primary listing move from the London Stock Exchange.
In addition to the stock listing, Wheatcroft listed FanDuel’s standing as the top United States sports-betting and igaming provider as a key strength. He also cited “encouraging” underlying trends in the U.S. market against well-telegraphed weakness in March margins.
However, the U.S. was a trailing source for first-quarter cash flow, with only $26 million. Flutter’s leading markets were the United Kingdom and Ireland ($268 million), Australia ($173 million), and miscellaneous international markets ($83 million).
Wheatcroft reported that North Carolina was FanDuel’s second-most-successful launch of online sports betting to date, with 5.3 percent of the population signed up within 45 days. Growth in the U.S. in general slowed to 32 percent over the whole quarter, after an initial 11 weeks at 56 percent.
Poor margins, attributed by some to adverse March Madness outcomes, were a $76 million drag on the bottom line. “However, underlying trends remained strong over this period,” with handle increasing 46 percent, according to Wheatcroft.
The analyst gave Flutter stock a Buy rating and a price target of 22,000 pence (roughly $275) per share, which represents a 36 percent premium to its current share price. Flutter trades at 17 times cash flow, compared to a 39-times ratio for DraftKings.
