DAVY VIEW

The Flutter Entertainment investment case is continuing to improve as FanDuel has inflected from an attractive opportunity to an attractive business. Outside of the US, the UK & Ireland business has taken significant share and is well placed ahead of pending regulatory change, International is increasingly focused on consolidate and invest markets, and growth will reaccelerate post the lapping of India tax. Australian forecasts have been significantly rebased and Flutter retains its dominant position. Together, this indicates a group aEBITDA CAGR of 24% from FY23-FY26. We believe a valuation of 12.9x/10x EV/EBITDA FY25/FY26 is too low for this level of growth. The catalyst path begins to improve from here as indexation shifts from a negative to a potential positive, early Q2 US data look encouraging and focus will soon shift to the September 25th Capital Markets Day.