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Investor Alert

May 29, 2020, 2:36 a.m. EDT

Flutter Entertainment Raises GBP812.6M in placing

By Adria Calatayud

Flutter Entertainment PLC said Thursday that it intends to place 8 million new shares in an equity raise, and that pro-forma group revenue has increased year-on-year in the second quarter-to-May 17 period.

The Ireland-based betting company, which owns brands including FanDuel, Paddy Power and Betfair, said the placing price will be determined at the close of the bookbuild process.

The company said it believes the current operating environment could result in longer-term changes in the sector, and that the placing will better position the group to move quickly to capitalize on opportunities should they arise.

Additionally, the company said pro-forma revenue rose by 10% year-on-year, benefiting from performance in the U.S. and Australia, which grew by 61% and 56%, respectively.

The company said the performance also reflects the group's enhanced product and geographic diversification, as well as good online poker and gaming performance--offsetting reduced sports revenue.

Sports-betting revenue has been materially hit by the disruption to sporting events, it said.

It said that despite the uncertainties, it believes it is well positioned for future growth, particularly in the rapidly expanding U.S. market.

Write to Adriano Marchese at adriano.marchese@wsj.com

Flutter Entertainment PLC said Friday that it has raised 812.6 million pounds ($998.6 million) in a discounted share placing.

The Ireland-based betting company, which owns brands including FanDuel, Paddy Power and Betfair, said it placed 8.0 million shares at GBP101 pence each, which represents a 4.7% discount to the company's London closing price on Thursday.

Flutter said the placing shares represent around 5.5% of its issued share capital before the fundraising. Flutter said it consulted with a number of its major shareholders prior to the placing.

On Thursday, Flutter said the current operating environment could result in longer-term changes in the sector due to the coronavirus pandemic, and that the placing will better position the group to move quickly to capitalize on opportunities should they arise.

Link to MarketWatch's Slice.