Firm behind Paddy Power and Betfair to list on New York Stock Exchange, leaving native Euronext
The Dublin-headquartered group said that its NYSE listing would become effective in the first quarter of 2024, and that it would delist from Euronext simultaneously or shortly before.
The move was announced as part of a third quarter trading update for the group, in which it said that its core earnings for the year would likely fall on the lower end of expectations due to “customer friendly” sports results in the UK and US.
The FTSE 100 group, which also houses the PokerStars brand, said that it expected adjusted EBITDA in its US arm to be around £140 million. The group announced a previously guided EBITDA range of between £90 million and £190 million.
Excluding the US, the group said adjusted EBITDA would now be approximately £1.44 billion. It previously announced a guided range of £1.44 billion to £1.6 billion.
The group, however, saw over a 13 per cent rise in year-on-year revenue for the third quarter, which landed at just over £2 billion, up from £1.89 billion the year prior.
Group-wide sports revenue saw a lift of four per cent, up to £1.12 billion, despite a 12 percentage point impact from adverse sports results year on year. Group-wide gaming also saw a revenue lift of over 26 per cent, up to £914 million.
Chief executive Peter Jackson said the group was excited about its plans heading into the “sports rich” months of November and December.
He added: “The Group had another strong quarter in Q3 and even in this seasonally quieter period, the power of our diversified business is clear with revenue growth of 13 per cent.
“We remain the number one choice for sports betting and gaming customers globally, and our 16 per cent growth in average monthly players augurs well for our continued growth and market leadership.
“Outside of the US, our strategy ensures we can capitalise on the many growth opportunities which exist across our global markets. Our diversified portfolio of leading brands are well positioned to adapt to challenges and opportunities in their respective markets.”
Following the trading update, Flutter Entertainment saw its shares drop more than a tenth in early trading, reaching their lowest since February.
In Australia, the group said a “challenging” racing market seen in the second quarter of the year had continued into July, August and September, leading to a revenue decline of seven per cent.
The group added that the softer racing market was now expected to persist into 2024, resulting in a mid-single digit devine in the overall Australian market in 2024.
Despite this, Sportsbet, the online gambling company owned by Flutter which targets the Australian market, grew its average monthly players by 2 per cent in the quarter.
Mr Jackson added: “While market conditions in Australian racing remain challenging, as the clear market leader with a player base 1.8 times that in 2019, we are confident that Sportsbet is the best positioned brand in the market.”