On November 9, 2023, Flutter Entertainment (OTC:PDYPY) released its third-quarter trading update, highlighting the success of its FanDuel unit and the company’s plans to list shares in the US in the first quarter of 2024.
The operator reported that its US operations are expected to generate 2023 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $180 million on revenue of $4.7 billion, which is higher than the previously forecasted figures. This positive performance further solidifies FanDuel’s position as a leading US online sportsbook operator, with the company expected to achieve profitability on an annual basis this year, a feat that no other US online sportsbook operator has accomplished.
Earlier in the year, Flutter announced its intentions to list its shares in New York, a move that has been approved by the company’s shareholders. The original plan was to list on a major US exchange in the second half of 2023, but it has since been delayed to the first quarter of 2024. The company will list its shares on the New York Stock Exchange (NYSE) and delist from Euronext Dublin, while retaining its listing on the London Stock Exchange (LSE). Flutter highlighted the possibility of shifting its primary listing to New York in the future.
The New York listing is expected to provide Flutter with increased access to capital and a broader investor base, including institutional and retail market participants. It could also reduce shareholder demands to spin off a part of FanDuel, as the company stated that such a transaction would take a backseat to the US listing.
Despite the positive outlook for FanDuel, Flutter’s over-the-counter US-listed stock experienced a significant 12.39% decline on the day of the announcement, with a sharp revenue decline in Australia contributing to the sell-off. The company highlighted challenges in the Australian racing market and revealed expectations of a mid-single digit decline in the overall market in 2024. Despite these challenges, FanDuel maintained a 40% share of the US online sports wagering market and saw its iGaming share increase to 23%.
While Flutter’s US-listed stock experienced a decline, the company’s positive outlook for FanDuel and plans for a US listing in 2024 indicate strong potential for growth and success in the US market.