In 2020, Flutter became the world’s largest online betting company with its US$6-billlion acquisition of The Stars Group, a Canadian gaming company.Ĭapitalised at £19.2 billion 2, Flutter is a top-100 company on the London Stock Exchange. In 2016, Flutter was created through the merger of Paddy Power and Betfair. Dominant position in a long-term growth market We believe Flutter can achieve this goal for five reasons:ġ. Our goal is to sell when the company achieves a top-quartile valuation.
#FLUTTER MEANING IN AUSTRALIA FULL#
Often, this means buying deeply out-of-favour stocks and holding them through a full investment cycle (7-10 years) as we wait for value to be realised. PM Capital’s investment style is to identify high-quality companies trading at bottom-quartile valuations. Importantly, at the time of PM Capital’s investment, Flutter traded at a material discount to our sum-of-the-parts valuation for it. The company’s leverage to the evolving legalised US sports-betting and online-gaming market could potentially provide years of growth. Flutter has a strong position in a structurally growing market. We believed Flutter had traits of other PM Capital investments. The Fund’s initial entry point was around £82 a share. In April 2022, PM Capital initiated a position in Flutter for the PM Capital Global Companies Fund.
So, we watched and waited for value to emerge in sports-betting stocks with US exposure. PM Capital believed this market would become a significant, emerging opportunity. In 2017, investors largely ignored potential growth in US sports betting given its status as an unregulated ‘grey market’ outside of Nevada. PM Capital’s investment in global casino companies and our understanding of the local bookmaking industry added to our understanding of sports betting. PM Capital’s interest in Flutter emerged during our 2017 review of UK bookmaking sector, which included such companies as William Hill and Entain (at the time named GVC). Less understood is that Sportsbet is owned by Flutter Entertainment plc, a Dublin-based company that has its primary listing on the London Stock Exchange (LSE: FTLR). Some might have used Sportsbet’s App to bet on horse racing or other sports. Many Australian sports fans would be familiar with advertisements for Sportsbet. But Flutter’s US growth and profitability could exceed market expectations over the medium to long term and be a catalyst to re-rate its share price, in PM Capital’s view. 1 Concerns about US competition and regulatory uncertainty in the UK have weighed on sports-betting and online-gaming stocks.
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