Davy Morning Equity Briefing
Jul 11, 2025
Flutter Entertainment plc
Attractive transaction to acquire 5% of FanDuel
Flutter Entertainment has announced that it will buy the 5% of FanDuel owned by Boyd for a cash consideration of $1.755bn ($1.55bn for the acquisition of the stake). It has acquired the stake at a very attractive implied FanDuel valuation of c.$31bn. This is a discount to our implied valuation of c.$40bn, likely due to the fact that it was a minority stake in an entity below Flutter group level. It will also make a payment ($205m) for the renegotiation of its market access at more attractive terms, with an expected annualised saving of $65m. This is undoubtedly a good use of capital as it provides additional certainty around market access and increased ownership of this key strategic asset. In a business where scale provides a key structural advantage, FanDuel dominates US market share with a 43% Gross Gaming Revenue share of online sports betting (no.2 is 35%) and a 27% market share in iGaming (no.2 is 24%).
Norwegian Air
Record unit revenues and strong demand outlook for summer
Norwegian Air reported a Q2 profit before tax (EBT) of NOK1055m, 18.5% ahead of consensus. Unit revenues for the group were up 10% while unit costs were up 7%, resulting in operating margin expansion to 12.2% (up from 6.4% last year). The airline has observed continued strength in forward bookings with tickets sold +9% for the July to October period and yield up year-on-year (yoy) on tickets sold. A dividend of NOK0.90 per share is to be paid in August.
Irish economy
Forecasts update: fundamentals continue to drive strong growth
Close to our forecast, the real Irish economy grew strongly by nearly 5% in 2024. Driven by very favourable fundamentals, especially in terms of employment growth, we see scope for continued expansions above 4% a year and extend our forecast horizon to 2027. The fiscal position remains strong, although we have revised our forecasts for housing output somewhat lower. While US tariffs and high uncertainty remain short-term risks to the outlook, the main impact we expect is lower corporation tax receipts later this decade. Into the 2030s, we note a trend towards increased “geo-economic fragmentation” and what it means for Ireland’s economic model – in particular, the imperative to address long-standing shortfalls of housing and infrastructure.
