DAVY VIEW

The adjustment to our Flutter estimates is consistent with our initial thoughts at the time of its recent preliminary results statement. We reduce our 2022F and 2023F EBITDA by 6% and 5% respectively. The change reflects a more challenging environment in its ex-US business, reflecting its own meaningful safer gambling initiatives in the UK, some normalisation of key end-markets following COVID restrictions and, of course, its exiting of the Russia and Ukraine markets. In the US, its progress continues to exceed expectations, resulting in yet another upgrade to revenue forecasts and also a better-than-anticipated path to profitability for 2022F and beyond.