DAVY VIEW

Flutter Entertainment’s H1 results are c.7% ahead of expectations, and we are now likely to increase our FY21 ex-US EBITDA forecasts by c.9%. Its performance in the first half was strong across the board. However, its exceptional US progress is particularly noteworthy. Its US customer base has increased by almost 350% (to 2.2m) in the last 12 months, with its revenue base now likely to be 50% larger than its closest US competitor in FY21. It now expects the US to be profitable at the EBITDA line in 2023, shining the brightest of lights on the future shape of the Flutter business. Group profits, cashflow and balance sheet are set to be transformed in the coming years. The investment thesis has arguably never been as compelling.