The wait for American investors is over: Flutter, the parent company of FanDuel, will be listed in the US as of Jan. 29.
Flutter announced Friday it will trade under the FLUT ticker on the New York Stock Exchange. The company also announced it will hold a “brief trading update” for the fourth quarter and full year on Jan. 18.
The FanDuel parent already has two stock listing in London and Dublin, but only wants to keep two listings. Flutter will end trading on the Dublin exchange on Jan. 23.
Reason behind FanDuel parent’s US listing
Flutter announced in February it would consult with shareholders about a US listing, something the company had discussed for years.
Shareholders gave “very strong support” to the idea in March before voting to approve the New York listing in April.
The company broke out five specific reasons for the listing:
- Enhancing the company’s profile in the US
- Better recruitment and retention of US talent
- Gaining access to “much deeper capital markets” and US domestic investors
- Flutter could be listed on prominent US indices if it switches New York to its primary listing
- Overall greater liquidity in Flutter shares
Wide disparity to DraftKings volume
A look at how Flutter trades following earnings compared to its primary US competitor, DraftKings, shows why a US listing is appealing.
Flutter’s volume following its third-quarter call topped 750,000, which was up from its daily volume at the time of around 685,000.
DraftKings, meanwhile, saw volume of more than 48.2 million the day of its earnings call.
Listing comes at inflection point for FanDuel
Flutter expects FanDuel to hit $180 million in adjusted EBITDA for 2023 on $4.7 billion in revenue.
Flutter CEO Peter Jackson expects a “ramp in profit” for 2024, though, which should set up for a strong first year of US trading.
“FanDuel will be the first operator to deliver full-year profitability, and our continued high-level of investment in player acquisition at compelling returns will drive a ramp in profit into 2024 and beyond,” he said on the third quarter call.
