The Flutter share price popped by more than 9% on Tuesday after the bookmaker reported strong half-year results. The stock rose to 14,000p, which was about 20% above the lowest level in July. It became the best performer in the FTSE 100. Similarly, the Entain share price jumped by more 1.68%, becoming the second-best performer.
Flutter Entertainment is one of the biggest gambling and sports betting companies in the UK, with a market cap of more than 24.66 billion pounds. It also has a presence in other key markets like the US, with brands like Fanduel. Other key brands for Flutter are FoxBet, PokerStars, PaddyPower, and BetFair. Fanduel has a 45% online sportsbook market share in the US.
In a statement, the company said that its first half of the year was excellent. Its average monthly players jumped to more than 7.6 million, pushing its revenue to more than 3 billion pounds. As a result, its total profit before tax rose from 24 million pounds to more than 77 million pounds. Its adjusted EBITDA rose to more than 597 million pounds. In a statement, Flutter’s CEO said:
“In the US, we remain the number 1 online sports betting operator by some distance thanks to the quality of our products and the extensive reach of the FanDuel brand. The customer economics we are seeing in the US bode very well for the future, with early FanDuel customers generating positive payback within the first 12 months of acquisition.”
The biggest competitor for Fanduel in the US is DraftKings, a company that is valued at more than $20 billion. There are rumours that Flutter might spin-off the asset to unlock its value. Still, Fanduel is an expensive product as the company spent more than 225 million pounds oj marketing.
Flutter share price analysis
The four-hour chart shows that the Flutter share price has been in a strong bullish trend in the past few days. This performance gained steam after the company published strong half-year results. The stock moved above the 50-day 25-day moving averages.
The MACD has also continued moving upwards. The price will likely keep rising as bulls target the next key level at 15,515. A drop below 12,500p will invalidate this view.