In a significant move, Flutter Entertainment (FLUT, Financial) has successfully completed its acquisition of Snaitech, a prominent omni-channel operator in Italy. The deal, valued at EUR 2.3 billion, was finalized through cash consideration with Playtech's subsidiary. Snaitech will now be integrated into the Southern Europe & Africa division of Flutter’s International sector.
This acquisition is in line with Flutter's broader strategy to strengthen its leadership in promising international markets. The company believes this will enhance shareholder value by bolstering its position in Italy, which is the largest regulated market in Europe. Italy presents considerable opportunities for online growth due to relatively low online penetration rates.
Additionally, Flutter aims to enhance its brand portfolio within the region and generate substantial value by leveraging access to the Flutter Edge, its unique operational advantage.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Flutter Entertainment PLC (FLUT, Financial) is $305.52 with a high estimate of $350.00 and a low estimate of $234.00. The average target implies an upside of 29.63% from the current price of $235.69. More detailed estimate data can be found on the Flutter Entertainment PLC (FLUT) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Flutter Entertainment PLC's (FLUT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Flutter Entertainment PLC (FLUT, Financial) in one year is $290.26, suggesting a upside of 23.15% from the current price of $235.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Flutter Entertainment PLC (FLUT) Summary page.
FLUT Key Business Developments
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Flutter Entertainment PLC (FLUT, Financial) reported a strong financial performance with a 19% revenue growth and a 26% increase in adjusted EBITDA for 2024.
- The company solidified its leadership position in the US market, achieving a 43% market share in sports betting and 26% in iGaming.
- Successful expansion into new markets, including North Carolina and Vermont, and the addition of Maxbet in the international business.
- The introduction of innovative products like the 'Your Way' customizable betting option and the FanDuel Casino Rewards Club has driven customer engagement.
- Flutter Entertainment PLC (FLUT) is on track to achieve its 2027 goals, with a focus on strategic growth and cost efficiency programs expected to deliver over $300 million in annualized cost savings by 2027.
Negative Points
- The company faced adverse sports results in the US, particularly in the NFL, which impacted revenue and adjusted EBITDA by approximately $550 million and $360 million, respectively, in Q4 2024.
- There is a potential risk of increased state gaming taxes in the US, which could impact profitability.
- The racing market in Australia showed softness, leading to an 8% decline in revenue, despite positive player-driven momentum in sports.
- The Italian market saw some share loss in the second half of 2024, which the company aims to address post-acquisition of Sny.
- The competitive environment in Brazil is challenging, with up to 200 companies applying for licenses, which could impact Flutter Entertainment PLC (FLUT)'s market entry strategy.
