The stock of the UK-based gambling company Flutter Entertainment PLC (GB:FLTR) slipped by over 4% yesterday, despite the company posting profits in its first-half earnings for 2023. The company’s return to profitability in the second quarter of 2023 was underpinned by its robust performance in the U.S. markets.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
For the six months ending on June 30, the pre-tax profit amounted to £82.7 million, which is a significant improvement from the loss of £51.4 million recorded during the same period in the previous year. The group’s EBITDA of £765 million was 76% higher than the £434 million reported last year.
Growth Fuelled by the U.S. Markets
The annual revenue climbed by 42% to £4.81 billion in the first half, up from £3.39 billion a year ago. Within this growth, the U.S. market witnessed a remarkable 63% increase in revenue to £1.80 billion, while revenue from the U.K. and Ireland grew by 13%. The numbers were driven by robust player momentum, with average monthly players increasing by 28%, primarily propelled by a notable growth of 43% in the U.S. market.
The company owns a well-known portfolio of brands like Sportsbet, PokerStars, Paddy Power, Betfair, FanDuel, and many more. FanDuel generated £79 million in earnings in the first half, of which £49 million came from the U.S.
The company’s international division has reached a pivotal point of growth. It achieved a 74% increase in revenue and a remarkable 103% rise in adjusted EBITDA, amounting to £284 million, driven by a growing customer base. Additionally, the growth was also influenced by the acquisition of Italian gaming company Sisal in August 2022. The company’s strategy of acquiring locally recognized brands in rapidly expanding markets has proven to be highly advantageous.
Is Flutter Entertainment a Good Stock to Buy?
On the whole, the stock has recovered well in the last 12 months and gained 57%. Analysts believe the share price will further increase as the company is strategically positioned for its upcoming growth phase.
The company is also targeting a U.S. listing for its stock by the end of 2023 or early 2024.
After the results, the stock received rating confirmation from three analysts. It includes Buy ratings from analysts Louise Wiseur of UBS and Jordan Bender of JMP Securities. Both analysts are predicting an upside of more than 25% in the share price.
Yesterday, J.P. Morgan analyst Estelle Weingrod also reiterated her Hold rating on the stock and expects a growth of 19% in the share price.
FLTR stock has a Strong Buy rating on TipRanks, backed by seven Buy and two Hold recommendations. The average price forecast is 18,118.9p, which is 26% higher than the current trading level.
