Paddy Power owner Flutter quits London Stock Exchange in blow to City
The owner of Paddy Power has said it will ditch its listing on the London Stock Exchange, in another major blow to the UK market.
Flutter, which owns gambling brands including Paddy Power and Betfair, shifted its primary listing to New York in 2024 and on Friday announced plans to ditch its secondary listing in London altogether.
The London Stock Exchange has been shedding members in recent years, as major firms either opt to move to New York or are snapped up in private takeovers.
Flutter said on Friday that it would drop its secondary listing in the City from Monday 3 August, leaving the firm solely listed on the New York Stock Exchange.
The firm launched a review of its London listing last month, which combed through the trading activity in its shares, “as well as the additional cost and regulatory and administrative obligations” involved in the UK listing.
Quitting London ‘in best interests’
Flutter “concluded that it is in the best interests of the company and its shareholders to proceed with the [London Stock Exchange] delisting,” it said.
The gambling giant opted not to put the delisting to a shareholder vote, saying its board “has determined that the [delisting] is in the best interests of Flutter and its shareholders”.
Flutter, which also owns Fan Duel, Poker Stars and Sky Betting & Gaming, switched its primary listing to New York in May 2024.
The gambling firm hailed “an important milestone in the evolution of Flutter” when it entered the US market, which came after it moved its headquarters to New York.
But Flutter has faced questions over its American expansion, with analysts warning that the firm’s battered share price is effectively “pricing in zero US growth”.
The company’s London-listed shares have shed nearly 48 per cent of their value in the year so far, to 8,426p, while its share price has dropped 49 per cent to $110 in New York.
London firms in exodus to New York
In May, the firm reported quarterly revenues of around $4.3bn (£3.17bn), up 17 per cent year-on-year, helped by online gaming growth and acquisitions.
But weaker sports betting results and rising investment costs forced management to trim full-year guidance.
Flutter’s departure from London comes after building firm CRH said in March it would quit the UK and retain its sole listing in New York.
In recent years, fintech Wise, construction firm Ashtead and pharmaceutical company Indivior have each either quit London entirely or switched their primary listing away from the LSE.
A flurry of private takeover interest in London-listed firms is also looming, with City giants like Tate & Lyle, Easyjet and Intertek all having received blockbuster offers in recent weeks.