- New guidance sees strong US profit growth
- Revenue forecast to be up 17.5% and EBITDA up 30%
- US primary listing shareholder vote on 1 May 2024
Online sports betting group Flutter Entertainment (FLTR) topped the FTSE gainers, notching-up a new all-time high of £179.75 after forecasting strong growth in 2024 at its market leading US fantasy sports betting brand FanDuel.
The shares are up 24% over the last year, comfortably ahead of a 6% gain for the FTSE 100 driven by investor excitement over FanDuel’s growth prospects and a proposed group US primary listing.
Commenting on the 2023 results CEO Peter Jackson said: ‘Flutter delivered a strong 2023 performance as we continued to deliver on our strategy.
‘As anticipated, our number one position in the US has transformed the Group's earnings profile during 2023 as FanDuel delivered a positive US full year Adjusted EBITDA for the first time.
‘Outside of the US we made excellent progress integrating Sisal into our International business, a business which is a great example of our "local hero" strategy at work and took market share in UKI.
NEW 2024 GUIDANCE
Encouraged by a strong start to the year which has seen group revenue grow 23.4% for the period to 17 March, with US revenue up 55.6% and ex-US revenue up 6.3% the company has introduced new 2024 guidance and moved its reporting basis to US GAAP (Generally accepted accounting principles).
Group revenue is anticipated to grow 17.5% with further EBITDA (earnings before interest, tax, depreciation, and amortisation) growth of 30.2% at the midpoint of the range.
US revenue and EBITDA are forecast to grow 36.3% and 206.1% to $6 billion and $710 million respectively at the midpoint of the ranges.
Analyst Gregg Johnson at Shore Capital said new group EBITDA growth guidance of 5% at the midpoint would be consistent with his forecasts on an IFRS (International financial reporting standards) basis but ahead of consensus.
Johnson concluded:’ Overall, bar moving to US-GAAP we would expect only a modest revision (from the US) to our estimates.
