Stocks Tracker: Big gains in 2023 for market leaders as growth stories continue across US and Europe
EGR analyses the share price movements of major industry players over the last 12 months, including Flutter Entertainment, DraftKings and Betsson
Flutter Entertainment
3 January 2023 closing: 11,450p
2 January 2024 closing: 13,735p
Peak 2023 closing: 16,725p (22 May)
Another strong year for the business to beat in the industry as Flutter Entertainment’s share price jumped more than 19% since last January. Leading brands in the US (FanDuel), UK (Sky Bet) and Australia (Sportsbet) have ensured the FTSE 100 firm has retained its place as the top operator in the space.
And further growth is seemingly on the horizon, with Flutter set for a dual listing on the New York Stock Exchange on 29 January to tap into the world’s deepest liquidity pool and US capital. CEO Peter Jackson has said the dual listing is the “right thing to do” for the business, with the potential for a full listing stateside in the future not having been ruled out. Additionally, as a result of listing in the US, Flutter will be delisted from the Euronext Dublin on 23 January.
Operationally, Flutter’s stock has risen as the group’s financial results continue to impress. Revenue jumped 24% to £4.8bn in H1 2023 while EBITDA grew 37% to £800m. Average monthly players in Q3 had increased to 11.1 million – an increase of 16% compared to the same period in 2022.
The firm has also bucked the trend of Euro-listed gambling firms seeing stock prices fall during 2023, as the likes of Entain, 888 and Kindred Group have all experienced slips. A market cap, at the time of writing, of £24.2bn could well be even larger in the coming months.
DraftKings
3 January 2023 closing: $11.05
2 January 2024 closing: $33.60
Peak 2023 closing: $39.07 (27 November)
A return to form in 2024 has seen DraftKings’ share price skyrocket by just under 200% in the past 12 months. Having made gains on long-term US rival FanDuel, boutique analyst firm Eilers & Krejcik Gaming noted the Boston-based operator overtook the Flutter-owned competition as market leader for online GGR in Q3. Product has improved, which has seen monthly actives jump 44% to 2.3 million in Q3 while revenue for the first nine months of the year stood at $2.4bn. And with a war chest of $1.2bn in cash at its disposal, rumours continue to swirl over potential M&A targets for the company.
In fact, the Q3 results released in early November gave the Jason Robins-led firm a significant boost in share price after slipping from a previous summer high. With hopes on further igaming regulation coming across the US, DraftKings is well positioned with its Golden Nugget brand, with gains there potentially seeing a further 2024 spike in the firm’s share price.
Betsson
3 January 2023 closing: SEK87.93
2 January 2024 closing: SEK108.90
Peak 2023 closing: SEK129.74 (24 July)
Betsson was another of the few European-listed gambling firms to see an upturn in its stock market fortunes during 2023. Under the stewardship of Pontus Lindwall, the company has continued to report financial growth over the past 12 months, with Central and Eastern Europe and Central Asia (CEECA) now making up 41% of group revenue. Despite locally regulated markets accounting for just 44.6% of group revenue, Betsson’s share price has jumped by almost a quarter since last January.
A headline M&A deal to acquire Belgian operator betFIRST for €123m was well received, while Lindwall confirmed in a Q3 earnings call that M&A will continue to form a significant part of the Stockholm-listed business’ strategy moving ahead.
Speaking to EGR following the release of the group’s H1 results in July, Lindwall was bullish on the company’s share price despite a 3% dip at the time. The dip came despite Q2 revenue jumping by 27% at the time.
Lindwall said: “I think we are in a good spot and I think investors will realise that as well. We have been in talks with people from the market and everybody appreciates our report and they are impressed. We are in a really good position.”
That good position gave way to another share price spike in September, following a July peak, before a slip in Q4 but, all-in-all, Betsson can look back on 2023 positively and ahead to 2024 with hope.
