Flutter Entertainment is an international sports betting company, which was formed in 2015 by a merger between Paddy Power and Betfair. Flutter also owns FanDuel, Sky Betting & Gaming, PokerStars and a number of other brands.
Last week, the company announced second quarter earnings which soundly beat expectations. Keep reading to learn more about Flutter’s Q2 performance and to find out what analysts forecast for the stock over the year ahead.
| Stock: | Flutter Entertainment |
| Symbol for Invest.MT5 Account: | FLTR.UK |
| Date of Idea: | 19 August 2024 |
| Time Line: | 6 – 12 months |
| Entry Level: | 16,500p |
| Target Level: | 19,375p |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Flutter Entertainment Q2 Performance
Here are some of the highlights from Flutter Entertainment’s recent second quarter earnings report:
- Total revenue of $3.61 billion, an increase of 20% year on year and ahead of an expected $3.4 billion.
- Adjusted Earnings per Share (EPS) of $2.61, an increase of 56% year on year and significantly higher than the expected $1.56.
- Net income up by 364% to $297 million.
- Average monthly players increased 17% to 14.3 million.
Flutter’s second quarter revenue growth was driven by US sales, which soared 39% year on year. This led management to revise its full year guidance for US revenue to a range of $6.05bn – $6.35bn, having previously been forecast at $5.8bn – $6.2bn.
Group revenue excluding the US also received an upward revision in guidance to $7.85bn – $8.15bn (previous: $7.65bn – $8.05bn), as revenue from this segment grew 11% year on year in Q2.
The full year outlook for adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) was upgraded in both segments too. In the US, adjusted EBITDA is now expected to fall in the range of $680m – $800m (previous: $635m – $785m) whilst outside the US, adjusted EBITDA is now expected between $1.69bn – $1.85bn (previous: $1.63bn – $1.83bn).
On the heel of its positive results, Flutter Entertainment appear to be looking to expand its reach, with CEO Peter Jackson writing that the company planned to outline its “growth potential in more detail” at an investor day next month.
Indeed, the day after earnings were announced, it was confirmed that Flutter is currently engaged in exclusive talks to acquire Playtech’s Italian business, Snaitech, which is one of the largest gambling companies in Italy. Rumours also swirl that Flutter is exploring acquisitions of Penn Entertainment in the US and Betnacional in Brazil.
Flutter is one of a number of companies which is looking to capitalise on the relaxation of sports betting restrictions in the US. In 2018, a Supreme Court ruling allowed individual US states to start legalising sports betting, which has led to 38 out of 50 states to allow some form of sports betting. This relaxation has naturally led to growth in the industry and Flutter has positioned itself as a major player.
However, investors should be wary of the potential for regulations to change. Indeed, following the loosening of restrictions in the US, there have been calls from some quarters for increased regulation of sports betting. Any such intervention from regulators in the US, or any other market, could seriously hamper Flutter Entertainment’s future growth.
The market reacted positively to Flutter’s Q2 results, with share price opening 10% higher in the following session. But what are analysts forecasting for the future?
Flutter Entertainment Stock Forecast – What do the Analysts Say?
According to analysts polled by TipRanks for a Flutter stock forecast in the past 3 months, there are currently 11 buy, 3 hold and 0 sell ratings on the stock. The highest price level for a Flutter Entertainment stock forecast is 22,200p with the lowest price target at 15,000p.
The average price target for a Flutter stock forecast is currently 19,375.11p.
An Example Trading Idea for the Flutter Stock Price
An example trading idea for the Flutter share price could be as follows:
- Buy the stock on a break above 16,500p to allow for volatility.
- Target just below the average analyst price target of 19,375p.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 6 – 12 months
- If you buy 20 Flutter Entertainment shares:
- If target is reached = £575 potential profit [(19,375p – 16,500p) * 20 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, if it rises at all.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs. With the Admirals Invest.MT5 account you can buy and sell UK stocks with a commission of 0.1%. However, there is a minimum transaction fee of £1.
How to Buy Flutter Stock in 4 Steps
With Admirals, you can buy more than 4,500 shares from around the world.
- Open an account with Admirals to access the dashboard.
- Open the web trading platform.
- Search for Flutter Entertainment and click the symbol to open a price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket.
Click on the banner below to trade Flutter Entertainment stock today ▼▼▼
Do You See the Flutter Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance the Flutter Entertainment share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs. This means you can trade long and short to potentially profit from both rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
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