Yahoo Finance FanDuel Parent Falls After Sales Miss, Sets Out NYSE Listing
(Bloomberg) -- FanDuel owner Flutter Entertainment Plc fell as much as 9.4%, the worst intraday decline since March 2022, after it missed sales estimates.
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Revenue was £2.04 billion ($2.5 billion) in the third quarter, missing the £2.15 billion average estimate from analysts surveyed by Bloomberg. Earnings from sports betting in the quarter were affected by unsurprising sporting results, which are more favorable to bettors than bookmakers.
The results were “disappointing,” Goodbody analyst David Brohan said. He pointed to further hits to Flutter’s earnings resulting from currency exchange rates, a tax change in India and weaker results in Australia.
Shares fell 9.1% to 12,460 pence at 8:20 a.m. in London trading. The stock has gained 10% this year.
The company said it expects full-year adjusted earnings before interest, tax, depreciation and amortization of £140 million in the US, in the middle of its previous forecast of £90 million to £190 million. Outside the US, it sees adjusted earnings of £1.44 billion, at the low end of earlier guidance.
Flutter also said it expects to sell shares on the New York Stock Exchange in the first quarter to raise the gambling group’s profile in its biggest market.
It has filed an application with the US Securities and Exchange Commission and plans to de-list from Euronext Dublin at around the same time as the share sale, the Dublin-based company said in an earnings statement on Thursday.
Flutter, which is also traded in London, has already received shareholder approval for the US listing and said the plan will help expand its access to talent and capital.
(Updates with share drop from first paragraph)
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