FLUTTER Entertainment has officially commenced trading on the New York Stock Exchange (NYSE) as its primary listing today, May 31. This marks a significant milestone in Flutter’s strategic relocation from the UK to the US, a move that has been months in the making. The transition was first announced in December, earmarking Flutter’s intention for a secondary listing, which gained full momentum in May when shareholders overwhelmingly approved relocating the primary listing to the US.
Efforts have been relentless to ensure the transition was completed by the end of May, a target Flutter has successfully hit. This milestone follows Flutter’s reclassification on the Official List of the Financial Conduct Authority from a ‘Premium Listing’ to a ‘Standard Listing,’ effective at 08:00 BST today.
Flutter’s shares will remain tradable on the Main Market of the London Stock Exchange (LSE), nestled within the Standard Listing segment. Commenting on this significant development, Flutter CEO Peter Jackson said, “Today marks an important milestone in the evolution of Flutter with the commencement of our primary listing on the NYSE. This closely follows the recent move of our operational headquarters to New York. Both reflect the increasing importance of the US sports betting and igaming market to our business.”
He continued, “We have a fantastic position in the US, with FanDuel as the clear number one operator, and we look forward to this next step on our journey.”
However, alongside this celebratory news comes a substantial leadership change. Flutter confirmed today that Paul Edgecliffe-Johnson is stepping down as Group CFO with immediate effect. The board had consulted Edgecliffe-Johnson due to the extensive time commitments that the role would now demand in the US, which conflicted with his familial obligations in the UK. Ultimately, both parties agreed it was in Flutter’s best interest for him to step down.
Replacing Edgecliffe-Johnson as Group CFO is Rob Coldrake, who has served as CFO for Flutter International since 2020. Coldrake’s 14-year tenure at TUI Travel in various financial roles, coupled with experience at PricewaterhouseCoopers, positions him well for this senior role. “During his four years at Flutter, Rob has shown himself to be a CFO of exceptional calibre,” CEO Jackson noted. “His skills and experience will help us to take advantage of the significant opportunities before us.”
Flutter’s Chairman John Bryant also expressed his gratitude and optimism. “The board is especially delighted we were able to develop such a high-quality executive within our own business. We look forward to working with him and the team into the future. I would also like to take the opportunity to wish Paul well and to thank him for his contribution to the group.
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These corporate developments come on the heels of a complex first quarter for Flutter, which reported a net loss of $375 million (£295m/€346m). This loss stemmed from higher operating expenses and the negative impact of foreign currency translations, which overshadowed a promising 16.4% year-on-year increase in revenue.
Despite a challenging quarter where the group saw a net loss, Flutter’s revenue climbed to $3.40 billion. Substantial growth was recorded across most markets, with the notable exception of Australia. A significant driver of this revenue boost has been the US market, which is central to Flutter’s growth strategy. The transition to the US primary listing is reflective of this ongoing success.
For the first quarter, activity in the US accounted for over 40% of Flutter’s total revenue, totaling $1.41 billion. The gross gaming revenue (GGR) from igaming also marked a new peak at 27%, propelled by a strategic focus on direct casino players, enhanced customer experiences, and new game additions to FanDuel Casino.
Likewise, sports betting saw an increase in market share with online net gaming revenue reaching 52%. FanDuel’s expansion into new states, including Vermont and North Carolina, during Q1, served to enlarge its customer base. However, a full quarter of significant acquisition volumes in Ohio last year resulted in lower new sportsbook and casino player volumes this quarter. Despite this, new player acquisitions in states that launched before 2022 were up by 12% from the previous year.
While the presence in the US market is evidently a success, with continued expansion and growth projections, high costs have led to a comprehensive net loss compared to the previous year’s $54 million net profit. Last year’s results had benefited significantly from foreign currency gains.
Despite the net loss, there was a silver lining in the form of adjusted EBITDA, which saw a 46% increase, reaching $514 million. Excluding the US, the adjusted EBITDA still rose by 20.2% year-on-year to $488 million. Flutter’s financial and strategic maneuvers reflect a dynamic and evolving company, geared towards capitalizing on the burgeoning US market while managing the challenges that come with such transformative shifts.
