What's Going On With Sports Betting And Gambling Company Flutter Entertainment On Friday?

Zinger Key Points
  • Flutter Entertainment shares drop as CFO Paul Edgecliffe-Johnson departs, replaced by Rob Coldrake focusing on the US market.
  • Flutter shifts primary listing to NY as US market grows; faces challenges like revived shareholder lawsuit and new sports betting tax.

Flutter Entertainment Plc FLUT shares were trading lower in the premarket session on Friday after the company announced the immediate departure of CFO Paul Edgecliffe-Johnson, who will be replaced by Rob Coldrake.

The stock has reversed the losses and is trading higher at the last check on Friday

Coldrake, the CFO of Flutter’s international business since 2020, will take on a new role focusing on the American market.

The international sports betting and gambling company is shifting its primary share listing from London to New York, as the U.S. market has become its most prominent due to relaxed gambling laws that have spurred growth, Bloomberg reports.

However, the transition has faced challenges. A New York court revived a shareholder lawsuit against FanDuel’s combination with Flutter, and a new tax on sports betting in Illinois temporarily impacted the company’s shares.

In March, Flutter Entertainment reported fiscal 2023 revenue growth of 24.6% year over year to $11.79 billion. Adjusted EBITDA rose by 45.4% to $1.87 billion, and adjusted EPS was up 25.8% to $3.51.

Flutter Entertainment stock lost 4% in the last 12 months. Investors can gain exposure to the sports betting and gambling sector via VanEck Video Gaming And ESports ETF ESPO and Global X Video Games & Esports ETF HERO.

Price Action: FLUT shares are trading higher by 1.76% to $191.20 at the last check on Friday.

Photo via Company

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