Flutter Entertainment

Luck headwinds but KPIs are strong

  • Sectors : Gaming
  • Companies : Flutter Entertainment

Ratings and price correct at time of issue.

  • Flutter Entertainment

    Closing Price: 13200p

  • RATING 08/05/19

  • PREVIOUS RATING 29/08/17

    NEUTRAL

DAVY VIEW

Flutter issued a post-close trading update this morning. The ex-US performance was in line with expectations. The US business again showed very strong underlying momentum, which augurs well for 2024 and beyond. As had been widely flagged, sporting results were a headwind in November – negatively impacting Q4 revenue guidance by £147m or $225m. Although a headwind to FY23 earnings, sporting results typically revert and so are not fundamental to the investment case. The market should focus on the strong KPIs, including: (i) market share gains; (ii) structural hold (win margin) improvements; and (iii) growth in the ex-US business. We view any potential weakness in the share price from sporting results as a buying opportunity.

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Jan 18 2024, 07:10 GMT

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