Racing Post: Flutter Entertainment experiences significant revenue growth, resulting in soaring share price
Flutter, the parent company of Sky Bet, Paddy Power, and Betfair, experienced a significant increase in its share price, reaching 15,160p by the afternoon. This surge followed the company’s announcement of an 11% increase in revenue to £2.67 billion for the fourth quarter of 2023 and a 24% increase to £9.5 billion for the full year. The news comes just shortly before Flutter is set to launch a secondary listing on the New York Stock Exchange, with its American arm FanDuel already claiming a 43% market share as the number-one sportsbook in the US.
Despite a £270 million impact from customer-friendly sports results, particularly in relation to NFL betting in November, Flutter’s total US revenue rose by 19% in the fourth quarter, reaching £1.14 billion. In the UK and Ireland, revenue also saw a 19% increase to £647 million in the same period, partially attributed to a streak of losing favorites in horse racing. Flutter’s CEO, Peter Jackson, highlighted the low number of winning favorites in December, a mere 32%, as a major factor affecting their customers. He expressed the company’s 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 market in the UK during the fourth quarter to measures taken in anticipation of proposals from the government’s gambling review white paper. He emphasized the need for frictionless affordability checks and financial risk checks, expressing optimism about resolving the political situation around the proposals. Jackson expressed excitement about Flutter’s upcoming secondary listing in the US, scheduled for January 29, stating that it will make the company more accessible to US-based investors and provide access to deeper capital markets. He emphasized the group’s momentum and commitment to continued growth in 2024.
The market’s response to Flutter’s update was positive, with market analysts Davy stating that the performance outside the US was in line with expectations. Racing Post was mentioned as the source for the best offers in their note.