Flutter Soars on Optimism About U.S. Listing

The share price of the FTSE 100-listed Flutter Entertainment PLC (GB:FLTR) soared today thanks to the optimism about the company’s upcoming U.S. listing, which helped offset the impact of lower-than-expected revenue in the Q4 trading update. FLTR shares were up by over 14% at the time of writing today. Investors are optimistic about the U.S. listing due to the significant growth potential in this crucial market.

Flutter Entertainment is a sports betting and gaming company that owns brands like Paddy Power, PokerStars, Betfair, etc.

The Big Debut on Wall Street

Flutter is on track for its NYSE listing, scheduled for January 29, 2024. The company will also maintain its listing on the London Stock Exchange. Investors are excited about the big debut and ignored the lower-than-expected Q4 revenue.

According to the UK-based financial services company AJ Bell, Flutter stock can secure a higher valuation with its U.S. listing. The company is focused on tapping a huge opportunity in the market with the “legalization of sports betting” in major parts of the U.S.

Q4 Trading Update

For the final quarter, Flutter reported a 12% growth in overall operation in AMP (average monthly players) and a 15% growth in revenues on a constant currency basis. The full-year revenue grew by 25% on constant currency to £9.51 billion.

Regionally, revenue in the UK and Ireland increased by 19%, while Australian revenue witnessed a 2% decline in Q4. In the U.S., revenues jumped by 26% in the fourth quarter to £1.14 billion. Even though U.S. revenues fell below expectations, the performance of the rest of the regions aligned with the guidance.

The company will announce its full-year results for 2023, along with guidance for 2024, on March 26.

Is Flutter Stock a Good Buy?

According to TipRanks consensus, FLTR stock has received a Moderate Buy rating based on 11 Buy and four Hold recommendations. The Flutter share price target is 16,685.14p, which is 11.6% above the current level.

Disclosure