- US revenues jump 47% year-on-year
- FanDuel maintains leading market position
- US listing expected 29 January
Global betting and gaming group Flutter Entertainment (FLTR) topped the FTSE 100 leader board with the shares jumping 12% to £147.66 after revealing strong fourth quarter revenue growth and market share gains.
The shares have been the standout performer in the sector over the last year gaining 23% compared with share price falls at Entain (ENT) and 888 Holdings (888), although the former is up around 6% today buoyed by Flutter’s positive trading.
WHY ARE INVESTORS EXCITED?
The company’s US sports fantasy betting platform FanDual continued its strong momentum with US revenues jumping 47% year-on-year in constant currencies to $3.6 billion.
FanDuel maintained its number one position in the final quarter with its sportsbook taking 51% market share of net revenue while FanDuel Casino continued to increase its market share to 26% making it the number two player.
Overall US fourth quarter revenue came in below expectations due to sports friendly results resulting in a $225 million shortfall compared with prior guidance.
Over the last year investor excitement has been stoked by Flutter’s plans to dual list its shares on the New York Stock Exchange and today the company confirmed a listing date of 29 January.
Outside of the US trading was in line with expectations but it is noteworthy that revenue in the UK & Ireland increased 19% year-on-year after delivering continued market share gains through product improvements.
Find out why gambling shares have diverged
WHAT DID THE COMPANY SAY?
Chief executive Peter Jackson commented: ‘The Group traded well in Q4 underpinned by our leading local brands supported by global Flutter Edge advantages.
‘In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.
‘While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.
‘We are very excited that the addition of a US Flutter listing is now just days away. This is a pivotal moment for the Group as we make Flutter more accessible to US based investors and gain access to deeper capital markets.’
EXPERT VIEW
Investment director Russ Mould at AJ Bell said: ‘Excitement about the company’s imminent US stock market listing and commentary around continued momentum in the business allowed investors to look past a hit from customer-friendly sporting results in the US at Flutter Entertainment.
‘The legalisation of sports betting across much of the US has created a huge new market which many UK bookmakers are looking to tap into, to varying degrees of success.
‘Flutter has done this as effectively as any of them and its FanDuel business is enjoying particularly eye-catching growth.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Martin Gamble) and the editor of the article (Steven Frazer) own shares in AJ Bell.
