DAVY VIEW

Flutter has delivered another quarter of good revenue growth despite sporting results headwinds. The US continues to grow strongly, particularly when customer-friendly sporting results are accounted for, and the ex-US business delivered 5% pro forma growth. It has also updated its FY23 guidance ranges. For the US, it has guided to c.$4.7bn of revenue and c.$180m of EBITDA – in line with the midpoint of prior guidance and our forecasts. For the ex-US business, it is guiding to the lower end of the previously guided range (£1.44bn) due to unfavourable sporting results (-£50m) and FX (-£30m). At a group level, the new guidance implies FY23 aEBITDA growth of c.50%. The statement also flags some FY24 headwinds (detail below). Overall, underlying trends in Q3 remained strong in all divisions ex-Australia and the group continues to evidence the virtues of being a globally diversified scale player.