The parent company of FanDuel, Flutter Entertainment, has announced its plans to list in the U.S. in early 2024. This news comes as Flutter Entertainment shares experienced a significant drop on a profit warning.
Additional Listing on NYSE
Flutter Entertainment intends to pursue an additional listing on the New York Stock Exchange (NYSE), as part of a strategy to expand its presence in the American market. However, it will delist from the Euronext Dublin while maintaining its listing on the London Stock Exchange. Flutter Entertainment had previously expressed its interest in a U.S. listing, and now confirms that it will be on the NYSE.
Potential Primary Listing in the U.S.
In the future, Flutter Entertainment may consider making the U.S. its primary listing, although no concrete plans have been revealed yet.
Q3 Revenue and Performance
During the third quarter, Flutter Entertainment reported a revenue of £2.04 billion ($2.5 billion), reflecting an 8% increase over the previous year. However, this figure fell slightly short of the Visible Alpha consensus estimate of £2.15 billion.
Strong Position in the U.S. Market
Flutter Entertainment’s FanDuel unit continues to dominate the U.S. market, securing the “clear number 1 position.” The unit witnessed 20% revenue growth in local currencies throughout the third quarter, accompanied by a 38% rise in average monthly players.
Guidance for 2024
For the year 2024, Flutter Entertainment expects U.S. adjusted EBITDA of £140 million on revenue of £3.75 billion, aligning with its earlier projections. However, outside of the U.S., Flutter Entertainment anticipates EBITDA at the lower end of its range, totaling £1.44 billion due to increased investment.
Challenges and Other Factors
Flutter Entertainment acknowledges the challenging Australian market environment, which is expected to persist into the following year. Additionally, changes in Indian tax regulations will impact next year’s EBITDA by £30 million.
Share Price Performance
Following these announcements, Flutter Entertainment shares experienced a 12% decline during early London trading.