As Flutter moves over to the US, there's questions over whether the company will now end its London listing.
ADVERTISEMENTFlutter Entertainment, the parent company of PokerStars, Sky Betting & Gaming, Paddy Power and FanDuel amongst others, finally debuted on the New York Stock Exchange (NYSE) on the 29 January, with a NYSE:FLUT ticker.
The company, previously known as Paddy Power Betfair, is one of the biggest sports betting companies in the world. It had over 11.1 million average monthly players in Q3 2023, with sports revenue of $1.1 million (€1.01 million) in the same quarter, as well as gaming revenue of $914,000.
Although the company announced that it would be moving to the NYSE almost a year ago, it has taken this time to scope out US investors and markets, as well as gauge existing shareholder thoughts about listing in the US. Flutter has reported that markets came across as quite supportive of this decision.
As highlighted by CEO Peter Jackson in a press release on 29 January, “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.”
Will Flutter keep its London and Dublin listings?
So far, the company had its primary listing in London, on the London Stock Exchange (LSE), as well as its secondary listing in Dublin, on Euronext Dublin. Its debut on the NYSE is seen as an additional listing. It also had a Euro Stoxx 50 membership, which was dependent on its Euronext Dublin listing.
Thus, naturally, one of the main questions that has arisen from this move is what will happen to the company’s Dublin and London listings. Flutter has announced that it had cancelled its Euronext Dublin listing, which automatically also revokes its Euro Stoxx 50 membership. However, it has confirmed that Ireland will continue to be its country of incorporation, as well as headquarters and tax domicile.
Flutter has also confirmed that it will continue its primary listing on the London Stock Exchange, via the FTSE 100 index, which is unlikely to change for the time being. However, down the line, Flutter has plans to potentially shift its primary listing to the US.
Jackson pointed out: “We believe a US primary listing is the natural home for Flutter given FanDuel’s number 1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
For now, the company wants to maintain only two listings, in New York and London, to simplify strategic and regulatory issues.
Why is Flutter moving to the US?
Flutter has revealed that some of its reasons for moving to the US was to improve the retention and hiring of US-based talent, as well as maximise the company’s profile and reputation in the country. Furthermore, the company believes that the US will provide much larger capital markets as well as several new and better investors.
In turn, this will also ensure higher liquidity for the company’s shares. However, the main opportunity in the US lies in the company potentially moving its primary listing there someday and thus, being granted entry into some of the biggest US exchanges.
John Tuttle, vice chair of the NYSE said to Euronews' Angela Barnes in Davos recently: “No matter how you look at the data, the United States is the deepest pool of liquidity and capital in the world, which has the broadest investor base. It has a lot of analysts and investors that are focused on growth, not just dividends and value".
As such, it is perhaps not surprising that Flutter Entertainment is hardly the first European company to think of moving across the pond. Building materials company CRH, packaging company Smurfit Kappa and semiconductor maker Arm Holdings, amongst others, have all announced the same recently.
