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Flutter Highlights FanDuel Strength, Plans NYSE Listing for Q1

  • 10 Nov 2023
  • Industry News

Flutter Entertainment (OTC: PDYPY) informed investors in its third-quarter trading update that it plans to move forward with a U.S. share listing in the first quarter of 2024, citing strength in its FanDuel unit.Similar to its competitor DraftKings (NASDAQ: DKNG), Flutter raised its 2023 guidance, informing investors that it anticipates its U.S. operations to produce $180 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) on $4.7 billion in revenue in 2023. Based on current exchange rates, the operator had previously projected 2023 EBITDA of $110.4 million to $233.2 million on sales of $4.4 billion to $4.7 billion.

Regarding FanDuel's third-quarter performance, Flutter stated, "Q3 sports gross revenue share of 40% (47% share of net revenue); clear number one position driven by leading product." 

These findings support the prediction that FanDuel will turn a profit annually this year, making it the first online sportsbook operator in the United States to do so.

Flutter Shares – New York Destined in Q1

The gaming company's shareholders have since approved Flutter's attempt to list its shares in New York, as the company had previously announced.

The initial plan was to list the stock on a significant American exchange during the latter part of this year. However, that has been postponed until 2024's first quarter. Investors were informed by Flutter that the company will list its shares on the NYSE and that it will "delist from Euronext Dublin simultaneously, or shortly prior" to the NYSE move. 

The gaming company stated that it might move its primary listing to New York at some point in the future. Following the announcement that venture capitalist Softbank would list UK-based semiconductor maker Arm Holdings in New York rather than London, observers of the UK financial market are growing more and more concerned that the LSE will lose out on high-profile listings.

Flutter stands to gain from expanded capital availability as well as a wider range of investors, including both institutional and retail players. The New York listing of Flutter may also lessen shareholder pressure to split off a portion of FanDuel. According to the company, the US listing would come first in this transaction.FanDuel Outlook Shows Flutter Falling
The operator of the second-largest share in the US iGaming market, according to data provided by FanDuel, had encouraging remarks, but on Thursday, Flutter's over-the-counter U.S.-listed stock fell 12.39% on more than double the average daily volume. One of the reasons for the sell-off was Australia's precipitous revenue decline.

"The challenging racing market we saw in Q2, continued in Q3 and resulted in sportsbook stakes being 9% lower,” according to a statement issued by the Irish gaming company. “Revenue declined 7% as sportsbook net revenue margin increased 20 basis points to 11.3%. The softer racing market is now expected to persist into 2024, resulting in an estimated mid-single-digit decline in the overall Australian market in 2024.”

FanDuel's market share of American online sports wagering was 40% at the end of the third quarter, compared to 42% a year earlier. However, its iGaming percentage rose from 19% to 23%. 

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