DAVY VIEW

Flutter Entertainment has this morning announced that it will acquire a 56% stake in NSX Group, a leading Brazilian operator, with an option to increase its holding in year 5 and year 10. This transaction had been speculated previously in trade press and Flutter has in the past been clear in its ambitions to acquire in order to achieve position in attractive markets. Brazil is in the midst of licensing sports betting and will be regulated in 2025. It will be one of the most attractive global gaming countries. This is a good use of capital – it strengthens its position in the market and provides optionality to increase in a relatively capital-light manner. The statement flags the potential for good revenue synergies as Flutter brings its leading product set to the market. Flutter will enter an investment phase in 2025, and we would be very confident of it achieving a strong podium position in Brazil. Importantly, post this transaction, Flutter’s balance sheet will still have significant optionality.