FLTR LN

Flutter Entertainment Plc

TMT, Consumer


Presented:03/02/2023
Price:£133.30
Cap:$36.06B
Current Price:£173.50
Cap:$21.21B

Presented

Date03/02/2023
Price£133.30
Market Cap$36.06B
Ent Value$36.51B
P/E RatioN/A
Book Value£57.97
Div Yield0%
Shares O/S176.09M
Ave Daily Vol271,072
Short IntN/A

Current

Price£173.50
Market Cap$21.21B
Flutter Entertainment Plc is engaged in the business of online betting and gaming. It operates through the following segments: PPB Online, Australia, PPB Retail, U.S, and Corporate. The PPB Online segment comprises of Paddy Power, Betfair, and Adjarabet brands. The Australia segment focuses on sports betting services provided to Australian customers using internet with a small proportion using the public telephony system. The PPB Retail segment covers sports betting and gaming machine services delivered through licensed bookmaking shop estates in the United Kingdom and Ireland. The U.S. segment consists of sports betting, daily fantasy sports, and gaming services. The company was founded in 1988 and is headquartered in Dublin, Ireland.

Publicly traded companies mentioned herein: DraftKings Inc (DKNG), Flutter Entertainment Inc (FLTR LN)

Highlights

The presenter is long shares of Flutter Entertainment Inc (FLTR LN) and DraftKings Inc (DKNG) but views FLTR as the more attractive business. Online gaming in the US is a growth area with a number of states coming online, and has become a two player market (FLTR and DKNG), particularly on the sports betting side. There were concerns that the industry would remain very competitive and promotional, but FLTR and DKNG have dominated the market with US sports betting market shares of 50% and 30%, respectively, and growing. He expects this dominance to continue, citing other markets around the world with concentrated market shares (e.g., UK, Australia, Ireland). Looking forward for FLTR, he sees a reasonable path to ~£3B in EBITDA from the US business with another ~£2B from the group ex-US, applies a 12x multiple, and assumes some deleveraging to reach a £58B market cap (vs. the current £24B).

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