DAVY VIEW

Flutter has reported Q1 numbers a little ahead of our expectations. Given Q1 makes up a relatively small part of the mix (particularly in the US), the focus quickly moves to guidance and outlook. The mid-point of the US aEBITDA guide has been moved by -$80m/8%, primarily owing to new state investment and some sports results, but importantly the underlying picture remains unchanged. The mid-point of the International guide has been reduced slightly, primarily owing to sports results. The group revenue guidance mid-point is broadly unchanged and group EBITDA is reduced by c.3.5%. We had observed bearish sentiment around the full year guidance coming into this print, so we believe this will be well received. We would particularly highlight management commentary on the improvement in underlying US trends in the quarter. It also appears to be in the early innings of a number of initiatives to drive better performance, including its loyalty programme in sports, new product initiatives and the “One App”, which brings FanDuel Predicts into the core app.