Flutter Entertainment’s stock soars amidst gambling giant’s impressive revenue growth
By the afternoon, Flutter’s share price had increased by nearly 15 percent, reaching 15,160p. The parent company, which includes Sky Bet, Paddy Power, and Betfair, announced a 15 percent increase in revenue to £2.67 billion for the fourth quarter of 2023, and a 24 percent increase to £9.5 billion for the full year. This news comes just 11 days before Flutter’s secondary listing on the New York Stock Exchange, where its American arm, FanDuel, holds a 43 percent market share as the number-one sportsbook. Despite a £270 million impact from customer-friendly sports results, particularly in November’s NFL games, Flutter’s total US revenue still rose by 19 percent in the fourth quarter, reaching £1.14 billion. In the UK and Ireland, revenue increased by 19 percent to £647 million in the fourth quarter, buoyed in part by the poor performance of favorites in horse racing.
Peter Jackson, Flutter’s chief executive, mentioned that the lack of winning favorites in the fourth quarter greatly impacted their customers. He also expressed their commitment to supporting and growing the racing industry, citing initiatives such as the ITV documentary series on jump racing. Jackson attributed Flutter’s outperformance of the rest of the market in the UK during the fourth quarter to the measures they implemented in anticipation of the proposals outlined in the government’s gambling review white paper. He emphasized the need for a frictionless approach to affordability and financial risk checks.
Jackson expressed excitement about Flutter’s upcoming secondary listing in the US scheduled for January 29, noting its significance in making the company more accessible to US-based investors and providing access to deeper capital markets. He expressed optimism about continuing growth in 2024.
The announcement was well-received in the City, with market analysts Davy stating that the performance outside the US was in line with expectations. The Racing Post was also highlighted for offering the best offers all in one place.