DAVY VIEW

Flutter has produced another exceptional quarter with group revenue up 27% and aEBITDA +74% year-on-year (yoy), representing a good beat to our aEBITDA forecast. The US performance in Q3 was notable, outpacing its key peers in growth rates despite coming from a bigger base. For FY24, group guidance has been increased slightly. This is despite additional investment in US customer recruitment and negative US sporting results in October, although it saw a much less severe results impact than peers. Importantly, Q3 growth was broad based – the UK&I division yet again significantly outperformed listed peers; the International division grew well; and Australia is recovering faster than our expectations. It has also confirmed that it will commence the first tranche ($350m) of its $5bn buyback, which will run from November 14th 2024 until the end of Q125. The Q3 update clearly exhibits the virtues of scale, global diversification, best-in-class product, IP in pricing and risk and high-quality management. We believe this update will be very well received.