Paddy Power owner Flutter Entertainment has decided to delist from Euronext Dublin, the Irish Stock Exchange, as it plans to add a New York listing in the first quarter of 2024.
Flutter had expressed hopes of staying in Dublin alongside its primary London listing but said today that keeping two listings would "minimise regulatory complexities".
In a trading update today, the Paddy Power owner said it expects recent customer friendly sports results to push full-year earnings excluding the nascent US market to the bottom of its previously forecast range.
This sent the shares in the world's largest online betting company sharply lower today.
Flutter also said weakness in the Australian horse racing market is set to continue into 2024 after third quarter revenues there fell 7% year-on-year on a constant currency basis.
Reported group revenues were up 8% or 13% in constant currency terms.
Shares in the Paddy Power, Betfair and Fanduel owner, up 21% this year before the trading update, were down 11% in early trading.
Flutter said in August that it expected full-year adjusted ex-US core profit to rise to between £1.44 billion and £1.6 billion.
A winning streak for gamblers in September and October cost £50m with adverse foreign exchange movements adding a further £30m hit.
Flutter became the first online betting operator to turn a profit in the US in the first half and said today that it expects full-year US earnings of £140m compared to its previous estimate of £90-190m.
Analysts polled by Refinitiv had expected total core profit of £1.65 billion compared to the £1.58 billion Flutter guided on Thursday.
"Overall, this is a disappointing update from Flutter," Goodbody analyst David Brohan wrote in a note.
Rival 888 Holdings lowered its annual core profit expectations in September after a 10% decline in third-quarter revenue while Ladbrokes owner Entain also warned on annual and third-quarter online net gaming revenue.
Flutter's gaming revenue far outperformed sports betting in the quarter. Overall revenue in its largest division, US market-leading brand Fanduel, rose 20% on a constant currency basis, compared with first-half growth of 63%.
Revenue also increased by a softer 19% in its international division, which is led by Italian market leader Sisal. UK and Ireland revenue was up 11% where Flutter said it continued to take market share.
Last month the company said it was closing 21 of its Paddy Power betting shops around the country after a review of its operations. After the closures the company will still operate a total of 230 shops around the country.
Flutter's decision to leave Dublin is the latest blow for the Irish Stock Exchange after building materials giant CRH left for New York in September and Smurfit Kappa prepares to follow suit as part of an $11 billion deal to buy US rival WestRock.
Shares in the company sank by over 10% in Dublin trade today.
