Flutter Entertainment is facing fresh scrutiny after analysts warned the gambling giant’s battered share price is effectively “pricing in zero US growth”, as fears mount over a potential full London Stock Exchange exit.
The Paddy Power and FanDuel owner has come under renewed pressure after cutting guidance despite posting stronger quarterly revenues, with investors increasingly questioning whether the US sports betting boom is starting to cool.
Jefferies analysts said Flutter’s valuation now implies almost no future growth from its US business, despite FanDuel remaining one of the dominant players in the American online betting market.
“Flutter shares now price in zero US growth,” analysts at Jefferies said in a note to clients, arguing the market had become overly pessimistic on the company’s long-term US prospects.
The warning landed just days after Flutter confirmed it was reviewing its remaining London listing, fuelling concerns another major firm could quit the City altogether after already shifting its primary listing to New York in 2024.
Shares in Flutter have plunged more than 50 per cent since the start of the year amid slowing investor confidence around US gambling growth and softer earnings expectations.
The company still reported quarterly revenues of around $4.3bn (£3.17bn), up 17 per cent year-on-year, helped by online gaming growth and acquisitions.
But weaker sports betting results and rising investment costs forced management to trim full-year guidance.
Another London market blow?
Flutter’s potential departure would mark another symbolic hit for London markets after a string of high-profile firms either shifted listings to New York or quit the UK exchange entirely.
The betting group, which owns brands including Paddy Power, Betfair and Sky Betting & Gaming, moved its primary listing to New York last year as it sought greater access to US capital markets following explosive FanDuel growth.
At the time, chief executive Peter Jackson insisted Flutter would maintain a London presence because many shareholders still wanted UK market exposure. But the company has now confirmed it is reassessing that position, with a decision expected next month.
“Flutter is considering whether maintaining a secondary listing in London continues to deliver sufficient strategic and commercial value,” the company said.
The review comes amid wider anxiety over the health of London’s public markets, with firms including CRH, Wise and Ashtead also reducing or abandoning their UK listings in favour of the US.
Despite the recent selloff, some analysts still believe Flutter shares remain undervalued compared with US rivals, arguing the market may be overreacting to short-term guidance cuts.
But with investor sentiment weakening and questions growing over the sustainability of US betting growth, Flutter’s next move is now being closely watched on both sides of the Atlantic.