Flutter shares dip as firm completes US listing move
Gambling giant Flutter Entertainment has confirmed its primary listing is now in the United States, not London, as its stock dipped this morning.
This morning, the Betfair and Paddy Power owner told markets of the “important milestone” and announced that its chief financial officer would also step down.
In an announcement to the London Stock Exchange, it said its “primary listing is now on the New York Stock Exchange”, but its ” shares remain eligible for and continue to trade on the Main Market of the London Stock Exchange”, as a secondary listing.
Previously, the firm said the Big Apple would be its “natural home”, having leant in to the liberalisation of gambling laws in the US which now represents the company’s most obvious growth path.
In February of this year, Flutter announced it was working towards a US primary listing, speaking with investors and shareholders. It said this morning the feedback was “very supportive” of moving the listing across the pond. It listed in the US in August last year.
Following the news this morning, Flutter’s share price on the London Stock Exchange dropped by 6.44 per cent by around 10am.
Shares in the gaming giant have dropped 6.10 per cent in the last month alone, in anticipation for the switch.
Its sports gambling operation FanDuel enjoyed another year as the country’s largest online sportsbook, with market share of more than 50 per cent in the last quarter of 2023. FanDuel reported positive adjusted EBITDA for the first time.
The New York Stock Exchange welcomes Flutter Entertainment (NYSE: FLUT), today, Monday, January 29, 2024, in celebration of its listing. To honor the occasion, Peter Jackson, Chief Executive Officer, joined by Lynn Martin, NYSE President, rings The Opening Bell®. Photo Credit: NYSE
Peter Jackson, CEO of Flutter Entertainment, said: “Today marks an important milestone in the evolution of Flutter with the commencement of our primary listing on the New York Stock Exchange.
“This closely follows the recent move of our operational headquarters to New York, with both reflecting the increasing importance of the US sports betting and iGaming market to our business. We have a fantastic position in the US, with FanDuel the clear number one operator, and we look forward to this next step on our journey.”
With the primary US listing, Flutter also announced its chief financial officer, Paul Edgecliffe-Johnson, will be replaced by Rob Coldrake immediately.
It told the London Stock Exchange “in anticipation” of the listing switch “and the consequent need for extensive executive management time to be spent in the United States” it was bringing in a new finance boss.
Flutter said its board “engaged in a discussion with Paul Edgecliffe-Johnson concerning his ability to meet that requirement in light of his family commitments in the UK”, and has now “concluded that it is in the Company’s best interests for Paul Edgecliffe-Johnson to step down from his role as Group CFO and Executive Director.”
Coldrake is currently CFO of Flutter International and spent spent 14 years in TUI Travel. Jackson said: “I am delighted that Rob will become our next Group CFO. During his four years at Flutter, he has shown himself to be a CFO of exceptional calibre and his skills and experience will help us to take advantage of the significant opportunities before us”, while thanking the outgoing boss.
John Bryant, Flutter’s chair, said it “is especially delighted we were able to develop such a high-quality executive within our own business.”