DAVY VIEW

Flutter Entertainment’s (Flutter) Q1 trading update confirms that the group continues to deliver high-quality top-line growth. Revenue in the period advanced by 33% (ahead of our 29% reported growth estimate) and is likely to result in a c.4% increase in our FY21 ex-US EBITDA estimates. The continued expansion of its active player base is particularly noteworthy – active monthly player (AMP) growth accelerated to 36% in the quarter. In our view, it is supportive of the group’s medium-term growth thesis and demonstrates the strength of its position in the structurally expanding global gambling sector. With the ex-US business trading on just c.6.5x our likely revised 2022 EBITDA forecast, we reiterate our ‘Outperform’ recommendation.