Flutter Entertainment - Strong customer momentum drives ‘beat and raise’

Davy Research
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Flutter has capped off a transformational year by reporting 2020 results materially above expectations (EBITDA ex-US +6% versus Davy and consensus). Strong customer momentum was maintained into year-end (Q4 average monthly players +32%), delivering best-in-class revenue performance in the final quarter (+37%). Its strengthening position in the global online gambling market presents a substantial runway for growth as well as a compelling investment opportunity. We are likely to raise our FY21 estimates (ex-US) by a low- to mid-single-digit percentage. We therefore reiterate our ‘Outperform’ rating.