Flutter Boss Believes Company Is Undervalued

Flutter Entertainment  having announced their results for 2020 have a lot to shout about but also a few things that they feel are unfair.

The online gambling giant which has PokerStars, Betfair and Paddy Power, FanDuel and Fox Bet among its brands and has announced annual revenues soaring to £4.4 billion in the last year are not happy as they believe they would be worth at least another £5 billion on top of the current valuation.

Flutter who estimates that by 2025 will see revenues of £14 billion annually laments that if they were on the New York Stock Exchange their valuation would exceed that of their US rival DraftKings who a valued at $27 billion.

Indeed the UK based online gambling firm has a point, Flutter has revenues larger than its second placed rival in the US DraftKings but still Flutter is currently valued at £25 billion.

Peter Jackson actually said: “We are the number one player there … our revenues in 2020 were greater than the number two and number three players combined.”

Peter Jackson the Chief Executive points out the recent Robinhood investors in GameStop and that could have happened to Flutter if they were listed in the US.

Mr Jackson went on to say say: “We need to leave the market to form their view of what our business is worth. You have to believe that our business in America is more valuable than the DraftKings business. So there is some mismatch between the valuations of the businesses.”

“It’s probably more difficult for the Robinhood type of investor to put money to play in Flutter – I think it’s a little bit more difficult for them and they are more focused on domestic US businesses.”