DAVY VIEW

Flutter issued a press release today, confirming a significant restructuring of its UKI business. The restructuring is due to the significant tax increases implemented by the UK government. In November of last year, Flutter guided to a $540m gross impact from the Budget and first-order mitigation of $201m in FY27. This programme forms part of the first-order mitigation. It also references that this supports delivery of second-order impacts. We are not aware of the average salaries and note that the job cuts are spread across a number of geographies; however, making a very broad assumption, it seems that this programme will deliver the majority of the first-order savings. On this basis, Flutter can continue to invest in the UK. This should lead to market share gains (second-order effects), particularly given how distressed smaller operators will be. Although this is clearly a very difficult time for Flutter and its staff, it does show evidence of cost discipline and delivery against plan.