DAVY VIEW

Flutter Entertainment reported Q1 results this morning. Underlying momentum remains strong in the US, the UK & Ireland and International, with Australia remaining challenging. Group revenue was up 16% in Q1 and aEBITDA rose 46% year-on-year (yoy). In the US, Flutter generated revenue of $1.41bn, up 32% yoy, which was c.20% bigger than the #2 operator. For FY24, it reiterated its guidance ranges, which imply 17.5% group revenue growth and 30% aEBITDA growth at the midpoints. FanDuel has clear competitive advantages in the high growth US market and growth prospects outside of the US remain attractive. We believe the catalyst path becomes more positive as we move into the summer months given strong momentum and a Capital Markets Day on September 25th. We reiterate our ‘Outperform’ rating.