DAVY VIEW

There is a lot to like in Flutter’s first-half performance. H1 EBITDA (£476m) is 4% ahead of our/consensus forecasts; there is no sign of any consumer slowdown (UK&I Online revenue momentum was improving as it exited Q2); and its newly introduced guidance range straddles existing expectations (no change expected to our or consensus EBITDA forecasts). However, its performance in the US is most eye-catching. Despite an extremely strong revenue, market share and customer acquisition performance, it generated positive US EBITDA in Q2 (£16m). Further, the top end of its guidance range suggests 2022 US revenues may ultimately be almost 25% higher than previously forecast (adding 4-7% to group revenue forecasts), while current year loss and 2023 profit expectations are unchanged.