US Markets
Monday, January 29th, 2024 3:24 pm EDT
Key Points
- Flutter’s NYSE Secondary Listing for FanDuel: Flutter, the parent company of FanDuel, commenced trading on the New York Stock Exchange (NYSE) in a secondary listing, providing U.S. investors an alternative to DraftKings, the prominent player in the sports betting market. While Flutter retains its primary listing on the London Stock Exchange and its inclusion in the FTSE 100 index, the move to the NYSE is seen as an effort to tap into deeper capital markets and make Flutter more accessible to U.S. investors. This secondary listing underscores Flutter’s strategic focus on the United States, where FanDuel holds a significant market share.
- FanDuel’s Dominance and Rivalry with DraftKings: In the U.S., FanDuel is the market share leader, holding 43% of the market based on gross revenue and 51% based on net revenue in the fourth quarter. Despite FanDuel’s outperformance, DraftKings has garnered more attention and media spotlight as the most prominent publicly traded pure play in sports betting. DraftKings’ shares have surged over 150% in the last 12 months. Flutter aims to gain recognition and capital for FanDuel through the NYSE listing under the ticker symbol FLUT.
- Jefferies’ Assessment and Industry Outlook: Jefferies, in a note, sees Flutter’s NYSE listing as a potential short-term catalyst, assuming a 20% premium to DraftKings’ valuation due to FanDuel’s sustained market share outperformance. Analysts imply a price target of £210, considering FanDuel’s performance. The sports betting industry in the U.S. is estimated by Jefferies to have a total addressable market of $37.5 billion. The article also notes the profitability and market share dynamics among competitors, with DraftKings lagging behind FanDuel in posting profits. Other competitors, such as BetMGM, Caesars Sportsbook, ESPN Bet, and Fanatics Sportsbook, are vying to capture market share from both FanDuel and DraftKings.
Flutter, the parent company of FanDuel, commenced trading on the New York Stock Exchange (NYSE) in a secondary listing, providing U.S. investors an alternative to DraftKings, its main competitor in the sports betting market. While Flutter retains its primary listing on the London Stock Exchange and inclusion in the FTSE 100 index, the move to the NYSE is seen as an effort to tap into deeper capital markets and enhance accessibility for U.S. investors. In the fourth quarter, FanDuel held a dominant 43% market share based on gross revenue and 51% based on net revenue in the U.S. Flutter CEO Peter Jackson noted that the NYSE listing marks a new chapter for the company. Analysts, including Jefferies, view this move as a short-term catalyst for Flutter, projecting a 20% premium to DraftKings’ valuation due to FanDuel’s sustained market share outperformance. The sports betting industry in the U.S. is estimated to have a total addressable market of $37.5 billion. FanDuel, led by CEO Amy Howe, expresses confidence in its ability to compete against well-capitalized rivals, emphasizing the significance of scale and having a distinctive product. As Flutter delists from Euronext Dublin to minimize regulatory complexity, it remains incorporated in Ireland for tax purposes, though this makes it ineligible for inclusion on the Euro Stoxx 50 index. The move underscores Flutter’s strategic focus on the U.S. market, where FanDuel holds a leadership position.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/29/fanduel-parent-flutter-lists-on-the-nyse.html
