DAVY VIEW

Flutter Entertainment’s (Flutter) current year guidance suggests a c.11% upgrade to Davy ex-US EBITDA estimates (12% for consensus). However, evidence that the company has shifted to an enhanced growth trajectory (pro forma revenue +21%) is most noteworthy. Strong customer active growth across multiple products and geographies forms the basis of its attractive multi-year growth investment thesis. The recent TSG deal has created a more diversified business (again, product and geography), but also the stand-out platform in the sector (21%/31% year-on-year (yoy) H1 pro forma revenue/EBITDA growth is materially better than others in the industry). We reiterate our ‘Outperform’ recommendation.