Flutter Entertainment‘s Board of Directors is assessing the possibility of listing the business on the New York Stock Exchange, according to documents. One of the main reasons cited is the growing importance of FanDuel to the group, which now generates more revenue than any other within its portfolio. The Board believes the decision to list would add further benefits to the long-term strategy of the company.
In a press release, the Board listed the beneficial reasons of the potential listing and said it would “enhance the group’s profile in the US; better enable the recruitment and retention of US talent; give the group access to much deeper capital markets, and to new US domestic investors; provide greater overall liquidity in Flutter shares; and the optionality to pursue, as a second step, a primary US listing – one of the criteria for access to important US indices.”
The company stated that it would still have to consult the shareholders, which it said it intends to do “extensively” and “immediately.” Flutter also noted that “in the event that there is broad shareholder support for an additional US listing, this would take precedence over any plans to list a small shareholding in FanDuel.”
“The capital markets day held in New York on 16 November 2022 highlighted the growing importance of FanDuel to the group as a whole,” the company also said. “This trend is expected to continue, with FanDuel becoming the Group’s largest business by revenue and an ever-greater proportion of its overall value.”
Toward the end of last year, Flutter shared its financial results for the third quarter of the year. The gaming group reported a 31% year-on-year increase in revenue, amounting to £1.89 billion ($2.16 billion). The sports betting and online gaming giant upgraded its US revenue guidance at the time, standing at $2.95 billion-$3.2 billion, as FanDuel outperformed expectations.
Amy Howe, CEO of FanDuel
In a recent interview with Bloomberg Television, Amy Howe, Chief Executive Officer of FanDuel, said the North American sports betting giant eyes full-year profitability in 2023. The largest online sportsbook operator in the US could thus achieve an industry first by delivering profitability on an annual basis.
“We feel very confident about our path to profitability for 2023,” Howe told the financial news network. “Fundamentals of our business are looking very strong so we remain very confident about full-year profitability this year.”
Original article: https://www.yogonet.com/international/news/2023/02/14/66095-flutter-weighs-listing-on-the-new-york-stock-exchange-amid-growing-role-of-fanduel
