The emergence of sports betting in the US threatens to have a transformational impact on the UK’s listed gambling firms. That’s demonstrated today by what Flutter called an “exceptional performance” in the US in 2022, with its sales at the top of end of its expectations, and an earnings loss at the lower end. Still, the allure of a US-based listing for Flutter could draw some of the attention away from the London market.
(Bloomberg) — The emergence of sports betting in the US threatens to have a transformational impact on the UK’s listed gambling firms. That’s demonstrated today by what Flutter called an “exceptional performance” in the US in 2022, with its sales at the top of end of its expectations, and an earnings loss at the lower end. Still, the allure of a US-based listing for Flutter could draw some of the attention away from the London market.
Here’s the key business news from London this morning:
In The City
Flutter Entertainment Plc: The online gambling firm reported higher full-year revenues and profits, after winning two million new monthly customers through acquisitions and newly legalized sports betting in US states.
- The company says it is still on track to report positive US Ebitda this year, despite making a £250 million adjusted loss last year
Haleon Plc: The maker of Panadol beat sales expectations in the final quarter of 2022, as inflation-squeezed consumers prioritize health spending.
- Unfavorable foreign exchange rates means the consumer health company doesn’t expect to improve its adjusted operating margin this year
London Stock Exchange Group Plc: The company plans to buy back up to £750 million of shares from a consortium of companies including Blackstone and Thomson Reuters, which it says will benefit shareholders.
- David Schwimmer, the company’s CEO, says it is moving from “integration to transformation,” following its purchase of Refinitiv, including its partnership with Microsoft and other investments its is making in infrastructure and venues
In Westminster
Chancellor Jeremy Hunt will offer voters a dollop of optimism alongside well-flagged spending restraint in his spring Budget as he tries to curb inflation, according to one of his junior ministers.
Meanwhile, Rishi Sunak’s success in securing a new settlement for Northern Ireland with the European Union has killed off any lingering prospects of a return to UK power by Boris Johnson, Conservatives said.
Three quarters of women paying for child care in the UK say it doesn’t make financial sense for them to work, according to a new report that could spark concerns about a labor market already under strain.
In Case You Missed It
Arm Ltd. has decided against selling shares on the London Stock Exchange for now, dealing a blow to UK politicians who were lobbying the home-grown technology giant ahead of its initial public offering.
An HSBC Holdings Plc activist shareholder in Hong Kong is pushing the lender to allow investors to vote on a plan that requires the bank to provide regular updates on the restructuring of its Asian operations and to restore dividend payouts.
Macquarie Group Ltd. is weighing a takeover of UK fund manager M&G Plc in a deal that would further expand a part of the Australian investment bank that’s impacted less by volatile global markets, Sky News reported.
The battle to buy Manchester United has focused attention on the eye-watering prices attached to certain clubs. This week’s In The City podcast takes a look behind the bidding. Listen here:
Looking Ahead
Education publisher Pearson Plc and property portal Rightmove Plc are among the companies that will cap off the earnings week tomorrow.
This year will test how well Rightmove can defend its strong market position as the firm’s core clients — estate agents — deal with wage and marketing budget pressures, HSBC analyst Rahul Chopra said this week.
The potential sale of online-only agent Purplebricks Group Plc to a rival isn’t a major threat to Rightmove, according to Bloomberg Intelligence’s Tom Ward. “But this development does serve as a reminder that if enough online-only agents fail, Rightmove may be negatively affected by a reduction in total spending on property advertising and a lesser fragmentation of its customer base,” Ward said.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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