Flutter Entertainment will aim to move its primary listing to the US “as soon as practicable” following positive feedback from investors.
The FanDuel owner has begun its dual listing on the New York Stock Exchange, first announced in February last year.
It comes shortly after exiting the Euronext Dublin exchange, where it previously had a secondary listing.
The operator will put forward a proposal to move its primary listing to the NYSE as a special resolution at the firm’s 1 May 2024 Annual General Meeting.
Subject to shareholder approval, Flutter expects this will be put into action from Q2/Q3 2024. A primary US listing is a requirement of accessing certain important American indices.
Once this is accomplished, Flutter will retain its London Stock Exchange listing as a secondary listing.
The operator argued this will enable access to the greatest number of investors in both the UK and American markets.
The business says it will communicate further details “in due course” ahead of the AGM.
“With our NYSE listing effective today, this is a pivotal moment for the group as we make Flutter more accessible to US based investors and gain access to deeper capital markets,” said Flutter CEO Peter Jackson.
“We believe a US primary listing is the natural home for Flutter given Fanduel’s #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
Why is Flutter pursuing a US listing?
In recent years, Flutter’s FanDuel online gaming brand has become one of the leaders in the highly competitive US market, and now represents a significant fraction of overall revenue.
At £1.14bn, US revenue accounted for 42.6% of the operator’s overall takings in Q4 2023.
The company said the goal of the dual listing is to unlock several long-term strategic and capital market benefits.
These include an enhanced US profile, the provision of greater liquidity in Flutter shares and the option of pursuing a primary US listing.
Flutter added it believes the move will better enable the recruitment and retention of American talent, as well as give the group access to much deeper capital markets and new US investors.
Flutter Entertainment has suspended trading on Euronext Dublin ahead of its planned listing on the New York Stock Exchange.
The FanDuel operator confirmed its shares will be delisted from the Irish stock exchange at 8am on 29 January, the same day it will dual list shares on the NYSE.
The final remaining step required to list on the US exchange is to migrate the settlement system of its shares from Euroclear Bank to the Depository Trust Company, Flutter said.
This has already been approved by shareholders at the company’s 2023 annual general meeting and is expected to complete by 6am GMT on 29 January.
Flutter shares to remain on LSE
The company previously announced that the 24 January suspension of trading on Euronext Dublin is to allow for the settlement of pending trades, as well as repositioning instructions ahead of the US listing.
Flutter shares will also remain available on the London Stock Exchange. To minimise regulatory complexities, the operator has said it will retain only two listings.
In London, the operator’s ticker symbol will continue as FLTR, but it will use the FLUT symbol for its NYSE listing.
However, Flutter has also stated that “the group may pursue a primary US listing in due course”. This comes as an increasing share of the company’s revenue originates from North America.
FanDuel, its US-facing DFS, online sports betting and iGaming brand, is ranked as the number one sports betting and number two online casino operator in the market.
In its preliminary Q4 2023 financial results, Flutter said it currently holds 43% of the country’s sports betting market, as well as a 26% iGaming market share.
The company also reported its US revenue grew £1.14bn in Q4, up 26% compared to 2022. This was driven by a 33% uptick in average monthly players to approximately 4 million, and occurred despite adverse sporting results in the quarter.
Flutter will now report its financial results using US GAAP, commencing with full-year results on 26 March 2024.
Rationale for dual listing
Since Flutter’s 2018 acquisition of FanDuel, the business has grown to be among the most successful US sports betting and iGaming operators.
This means American revenue has become an increasingly large fraction of the business’ overall takings.
In February 2023, Flutter outlined the potential strategic and capital market benefits of a dual US listing to its shareholders.
These included an enhanced US profile, better recruitment and retention of US talent, as well as the ability to tap into deeper capital markets.
The company added it also gave the business the option of pursuing a primary US listing in due course. This is one of the criteria to access some important US indices.
In March the same year, NEXT.io investigated why Flutter wanted a dual listing. One analyst said that for a tech business with a strong American audience, a US stock listing was a “damn sight more attractive than the UK.”
Flutter opted to choose the NYSE over the Nasdaq for its listing in November 2023.
Flutter Entertainment has reported a 15% year-on-year rise in revenue to £2.67bn for Q4 2024.
The US was again Flutter’s strongest performing geography, where FanDuel is the number one market leader for sports betting with an estimated 43% gross revenue market share. It is also the number two operator for iGaming, with a 26% share.
US revenue jumped to £1.14bn in Q4, up 26% compared to the same quarter last year, driven by a 33% uptick in average monthly players to 4,032.
Gaming revenue rose by 49% as sports betting revenue rose by 21%, helped by a 53% uplift in sportsbook stakes.
Flutter said US revenue growth in Q4 was partially offset by a sportsbook net revenue margin decline of 150bps to 7%.
This was due to customer-friendly sports results during the quarter and a 4.2% increase in promotional spend.
The adverse sporting results caused a negative impact of £343m in the quarter. This saw US net revenue come in nearly £150m below guidance provided in Q3, with adjusted EBITDA negatively impacted by approximately 35% as a result.
Flutter CEO Peter Jackson said: “In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.
“While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”
Outside of the US
Excluding the US, group revenue was in line with previous guidance and increased by 8% to £1.53bn.
Growth was reported in the UK & Ireland (19%) and International divisions (4%), with Australia the only territory to report declines, amid an annual downturn of 2%.
“Outside of the US, the quarter traded in line with expectations, with continued strong momentum in the UK&I supported by recent product enhancements and International growth driven by our “Consolidate and Invest” markets,” said Jackson.
The full breakdown is below:
Flutter also posted some impressive numbers for the full-year, as overall 2023 revenue climbed 25% to £9.51bn, driven by a 23% rise in sports revenue and a 29% rise in gaming revenue.
US revenue soared 41% year-on-year to £3.6bn. The full-year results reflected the Q4 pattern, with all major territories reporting impressive gains except for Australia, which dropped 3% to £1.17bn.
The full-year 2023 breakdown is below:
Regulus Partners analyst Paul Leyland said Flutter’s performance in the UK was the standout, especially when compared to competitors such as 888, which reported an 8% dip in full-year UK online revenue.
“As we anticipated on the Paddy Power Betfair merger, Flutter’s platform and operational capability is now putting distance between the market leader and rivals,” wrote Leyland.
“In this context, DraftKing’s US achievement is all the more remarkable,” he added.
US listing update
Flutter expects its additional US listing of shares to commence from 29 January 2024 on the New York Stock Exchange.
The business will now report in US dollars, starting with its full-year 2023 results, scheduled for 26 March 2024. This is also when 2024 guidance will be revealed.
“We are very excited that the addition of a US Flutter listing is now just days away,” said Jackson.
“This is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets.
“I am looking forward to 2024 and further building on the momentum within the group to continue delivering growth,” he added.
Flutter Entertainment’s move to list additional shares in the US has gathered momentum in Q3 2023.
The dual listing is now expected to become effective in Q1 2024 after Flutter submitted a draft registration statement to the Securities and Exchange Commission (SEC).
The additional ordinary shares are set to be traded on the New York Stock Exchange, which the operator selected as a preferred trading venue following a competitive tender process.
As a result, Flutter has taken the decision to cancel its listing on Euronext Dublin.
The board believes it is appropriate to maintain just two listings in order to minimise regulatory complexity.
The Euronext delisting is expected to take effect simultaneously with, or shortly prior to, the additional US listing.
The operator’s premium listing on the London Stock Exchange, and its membership of the FTSE 100, will not be affected by the Euronext cancellation.
Flutter reiterated that it may choose to pursue a primary US listing in due course ahead of the UK, although any switch would be subject to a shareholder consultation.
US listing rationale
Flutter first announced its intention to dual list shares in the US back in November 2022.
The move makes strategic sense for the company considering the success of its FanDuel brand, which was considered the US market share leader in GGR terms until very recently.
FanDuel remains the jewel in the Flutter portfolio, as the flagship brand in a US division that reported a 12% revenue rise to £668m for Q3 2023.
“We believe an additional US listing of Flutter’s ordinary shares will yield a number of long-term strategic and capital market benefits,” said the company at that time.
In March, NEXT.io investigated why Flutter was keen to secure a US listing, as one analyst suggested the market was “a damn sight more attractive than the UK”.
Super Group, the public parent company behind online sports betting firm Betway and multi-brand online casino Spin, has announced its addition to the Russell 2000® Index.
The formal inclusion of Super Group to the Russell 2000® Index took place as part of the annual reconstitution of the Russell Indexes family.
The event occurred after trading closed on Friday 23 June, and the effective inclusion started with the market opening on Monday 26 June.
The move saw Super Group’s share price plummet by more than 20%. This was likely due to excess trading volume after being added to the index.
Super Group’s inclusion in the Russell 2000® Index automatically extends to the Russell 3000® Index as well.
The operator hopes this elevation in status will enhance its visibility among investors and potentially provide a boost the company’s market cap.
Super Group CEO Neal Menashe said: “We are excited to join the Russell 2000 Index.
“We believe that this milestone as a public company will enhance our profile with investors as we work towards optimising our global footprint in the online sports betting and gaming industries while maintaining our profitability,” he added.
The Russell 2000® Index and the larger Russell 3000® Index form part of the family of Russell Indexes managed by FTSE Russell.
The Russell Indexes are recalibrated annually in a process known as reconstitution.
During this process, the 4,000 largest US stocks are ranked by their market caps.
The Russell Indexes are frequently used by investment managers and institutional investors as index funds and benchmarks for active investment strategies.
Nasdaq-listed affiliate Gambling.com Group was last year added to the Russell 3000® Index.
Cohn Robbins Holdings Corp (CRHC), the SPAC intended to take European lottery giant Allwyn public on the New York Stock Exchange, has urged its shareholders to vote for a merger between the businesses at an extraordinary general meeting scheduled for 7 September.
The recommendation follows an announcement that Allwyn’s registration statement for the merger, filed with the SEC, has been declared effective by the Commission.
The closing of the business combination is subject to approval by CRHC’s shareholders on 7 September, in addition to the satisfaction or waiver of other customary closing conditions. Following shareholder approval, the deal is expected to close shortly thereafter.
Upon closing, the combined entity will be listed on the NYSE with its class B ordinary shares and warrants under the new ticker symbols “ALWN” and “ALWN.WS”, respectively.
CRHC commented that it believes the global lottery industry holds attractive characteristics including high consumer participation, resilience through market cycles and upside potential as a result of growing online penetration.
Further, it said, it believes Allwyn is “well-positioned to grow through both organic and inorganic growth opportunities.”
Allwyn’s selection as the holder of the fourth UK National Lottery licence earlier this year “will further expand Allwyn’s footprint as one of Europe’s largest and fastest growing lottery companies,” it added.
The plan to list Allwyn on the NYSE was first revealed in January this year, and would give the business a total enterprise value of around $9.3bn, or 11.5x its estimated adjusted EBITDA for the full year 2022.
Under the details of the transaction, current Allwyn equity holders are expected to retain around 83% ownership in the company. No new shareholder will own a stake of more than 5% following the listing.
Following the original announcement, Allwyn said it expected the listing to support its global growth strategy by providing it with greater access to capital markets, enhancing and expanding its global brand including in the US, increasing online penetration in markets where it already operates, and allowing the business to enter new jurisdictions.
CRHC is co-chaired by its two co-founders: business leader Gary Cohn, current vice chairman of IBM who was formerly both COO of Goldman Sachs and director of the National Economic Council, and Clifton Robbins, founder and CEO of investment management firm Blue Harbor Group.
Upon completion of the transaction, Robbins will join Allwyn’s board of directors while Cohn will serve as a special adviser to Allwyn’s board chairman.
Super Group has reported a 45% increase in full-year revenue to €1.32bn for 2021 while opening its books to investors for the first time.
The operator, which owns the Betway and Spin brands, is more transparent than before having completed a SPAC merger with Sports Entertainment Acquisition Corp in January.
Super Group is now listed on the New York Stock exchange and boasts a market cap just below $5bn.
While 2021 revenue eclipsed 2020 levels of $908m, profit (+58%), EBITDA (+46%) and adjusted EBITDA (+60%) all rose sharply to €235.9m, €314.5m and €289.5m, respectively.
Other KPIs of note saw monthly average customers for the year climb by 75% to 2.62 million, while cash and cash equivalents jumped by 112% to €293.8m.
Super Group said the increase in annual revenue was driven by strong organic growth in most operating markets, despite the impact of tightening regulations in certain European countries and market exits elsewhere.
Online casino provided the bulk of 2021 revenue at €858.7m, €629.9m of which came from the Spin brand.
Betway remained the strongest performing brand in the Super Group portfolio, however, contributing €687.8m of overall revenue.
In terms of geography, North America was the group’s best performing territory at €593.7m, representing 45% of total. Asia and the Pacific was second with €329.8m, while Africa and the Middle East was third on €217.4m, demonstrating Super Group’s exposure to unregulated markets compared to many of its publicly listed online gambling competitors.
Africa and Middle East revenue shot up by 459.9%, while the only regional decline for Super Group came in Europe, where revenue fell by 23.4% compared to 2020 levels.
Discussing the gains in Africa and Middle East, Regulus Partners analyst Paul Leyland said: “A lot of the optical outperformance is likely due to the timing of pre-IPO subsidiary consolidation (Yakira, Gazelle, Raging River, Raichu Investments).
“However, it also reflects the extent to which several African countries now have a credible betting-led digital market capable of secular growth: the adoption curve generated by Covid-19 and wider customer engagement with digital entertainment has more than overcome Kenyan regulatory headwinds,” he added.
The operator has already launched in three new markets during 2022, including Bulgaria.
Marketing and branding is a major strategic play for Super Group and the Betway brand in particular. The firm signed over 30 sponsorship agreements last year and has added a further nine in 2022 to date.
Super Group CEO Neal Menashe said: “We are delighted to report strong growth and profitability in 2021, demonstrating the successful execution of our global growth strategy.
“We listed on the New York Stock Exchange at the start of 2022, a major landmark for Super Group after two decades of leadership in more than 20 markets around the world.
“With an eye on our growth and profitability profile, we couldn’t be more excited to execute on our plans in 2022 and beyond,” he added.
Much of Super Group’s US performance is dictated by its acquisition of Digital Gaming Corporation, which is expected to close in H2 2022.
The subsidiary is live in six US states, including New Jersey and Pennsylvania, with Betway branding and has secured market-access deals in up to 12 states.
Alinda van Wyk, CFO of Super Group, said: “Despite regulatory tightening in some European markets, we exceeded our forecasts for both revenue and adjusted EBITDA.
“The past year has been challenging and exciting, culminating in the NYSE listing of Super Group. We are looking forward to new opportunities and challenges in the years to come,” she added.
As part of its transition from private to public company, Super Group hired Lisa Kampf as its new vice president of investor relations earlier this month.
Betway owner Super Group has reported a 36% year-on-year rise in 2021 revenue to around $1.52bn, according to preliminary results provided to investors.
The firm, which listed its shares last month on the New York Stock Exchange via a SPAC merger, announced it had exceeded forecasts for 2021, with estimated full-year EBITDA in excess of $350m.
The operator expects to report its official full-year 2021 financial results in the first half of April.
Neal Menashe, CEO of Super Group, said: “We anticipate 2021 EBITDA to exceed our most recent estimate of $350m. This reflects our team’s ability to execute our global business plan with precision, driving profitability while still attracting customers, entering new territories and expanding our sponsorship portfolio.
“Occasional industry headwinds, such as a lower than expected sports margin in October, along with the closure of select markets, including the Netherlands, were offset by stronger than projected new customer acquisition and revenues in multiple markets, for both Betway and Spin.”
Richard Hasson, Super Group president and COO, added: “Super Group has an expanding, global footprint in a high-growth addressable market. We seek to consistently drive topline growth without sacrificing profitability, and we benefit from decades of experience navigating new and evolving markets.
“With our public listing complete, we intend to report full year 2021 results and hold our first earnings call in the first half of April. We will then provide a business update to discuss our first quarter 2022 financial results in May.”
Throughout 2021, Super Group continued its global expansion, with the Betway brand currently live in six US states (New Jersey, Pennsylvania, Indiana, Iowa, Colorado and Arizona) through a brand licensing deal with Digital Gaming Corporation, with market access secured in up to seven further states.
The operator reiterated in its preliminary results that it has a steady pipeline of opportunities that would enable it to launch the Betway and Spin brands in additional global markets throughout 2022.
Super Group’s share price rallied from $7.47 at closing on 22 February to $8.05 on 23 February, before closing at $7.99. At the time of writing, shares are down 6.5% in pre-market trading at $7.47.
This price is still some way off the maximum price per share of $10 touted at the time of Super Group’s public listing.
Introducing the New York NFT Exchange?
According to a scoop from Bitcoinist, the New York Stock Exchange has filed a trademark which suggests it could be moving towards building its own NFT marketplace.
Apparently, the exchange has within the past week filed a patent with the United States Patent and Trademark Office (USPTO), for the use of several different blockchain and crypto-adjacent goods and services, including areas like “virtual reality and augmented reality software, NFTs, and online marketplaces.”
It’s not the first time the NYSE has explored the NFT space, as it minted six tokens last year to commemorate notable past public listings.
Dubbed ‘First Trade’, the tokens went on sale as digital memorabilia of public debuts by companies and the first collection featured Spotify, Snowflake, Unity, Doordash, Roblox and Coupang.
There’s no shortage of suggestions that NFTs are penetrating the mainstream – and the possible entrance of the world’s largest stock exchange is sure to be a welcome signal to early adopters.
French firm’s bid for Premier League NFT licence raises eyebrows
The NYSE isn’t the only mainstream player entering the NFT craze as the metaverse starts to capture the imagination of sports fans. The Premier League is also making waves in the space and is seeking a partner to launch a range of digital collectibles in a deal worth more than £400m to clubs, according to the Daily Mail.
The newspaper revealed this week that one of the four companies currently in the running to secure the Premier League’s first NFT licence is France-based Sorare, which has been subject to a Gambling Commission investigation for allegedly launching a blockchain-based fantasy football game in the UK without the appropriate certification.
The presence of the firm in the competition has certainly raised eyebrows, but with bids thought to be between £220m and £434m over four years, competition is likely to be fierce.
Whichever company is successful will be permitted to offer NFT versions of virtual trading cards, the likes of which have already sold at auction for £300,000 (Cristiano Ronaldo) and £511,000 (Erling Haaland).
What to expect next from Super Group
Business publication Yogonet put out an interview with Betway-owner Super Group’s president Richard Hasson and board member John Collins earlier this week.
The pair hinted the operator may use the funds raised from its NYSE listing to facilitate M&A activity and talked up a healthy pipeline of new market entries in the coming year.
Hasson even commented on flavour of the month. He said: “If the metaverse comes into [Super Group’s product development] at some point, then we’ll leave it to our product guys and to our country teams in terms of understanding exactly what it is that our customers are after.”
Nothing concrete from Super Group yet, just a week after its public listing went live – but certainly one to watch.
What are the odds the UK will get the Gambling Act right?
According to the Guardian, British MPs betrayed a lack of understanding of statistics and probability when a staggering 48% of members surveyed were unable to correctly identify the chances of getting two ‘heads’ when tossing a coin twice.
“It would be interesting to see the results if 101 racing punters were asked to calculate the return on a £10 win double on two even-money shots, which is a different way of phrasing exactly the same question,” commented author Greg Wood.
“This is, of course, pure speculation, but my money would be on rather more than 52% of the punters knowing that the double is 3-1 against, and that they would be looking at £40 back.”
The point Wood was illustrating is that members of the UK government may well be woefully unequipped to come up with appropriate rules for a new Gambling Act – and unaware of the consequences their rulings could have.
He concluded: “Gamblers often seemed to be ignored, or dismissed as an irrelevance, in debates around the forthcoming legislation, which could have huge implications for racing’s revenue stream from betting.
“It seems likely many punters have a stronger grasp of chance than the MPs, which hardly increases confidence that the next Gambling Act will be any less of a poorly thought-out mess than the last one.” Indeed.
Betway owner Super Group expects to complete its SPAC merger with Sports Entertainment Acquisition Corporation (SEAH) today (27 January) and list on the New York Stock Exchange tomorrow.
Plans for Super Group’s IPO were first revealed in April of last year, with SEAH targeting a $4.75bn valuation for the combined business.
A Form F-4 registration statement submitted by Super Group to the SEC earlier this month said the business expects to register a total of 563.8m shares at a maximum price of $10 per share, giving the business a maximum aggregate offering price of $5.64bn.
SEAH shareholders today voted to approve the proposed combination, which is expected to generate around $202m from SEAH trust proceeds, reflecting some 45% of publicly held shares in the SPAC that were not submitted for redemption.
A previously stated condition of closing for the deal dictated that SEAH would hold no less than $300m in cash at the time of the merger. A large proportion of SEAH shareholders opted to redeem their shares, which reduced the SPAC’s available cash to $202m.
Super Group has therefore waived the minimum cash condition, and SEAH expects all closing conditions to be met as a result.
After the merger closes, the combined company will be known as Super Group (SGHC) Limited and its ordinary shares and public warrants are expected to trade on the NYSE under the ticker symbols SGHC and SGHC WS respectively.
Super Group’s latest financial statement, covering H1 2021, showed the business generated NGR of $762.6m, with NGR forecasts for the full year in excess of $1.5bn. The operator said it expected more than $350m in EBITDA from this figure.
During full-year 2020, Super Group generated €908m in revenue.
Super Group is the holding company behind sports betting brand Betway and Spin, a multi-brand online casino offering.