Flutter Entertainment shares fell 3.2% in early London trading on Tuesday as the online gambling operator tracked broader equity weakness and sector-specific headwinds.
The decline came as global stock markets softened following a mixed session in Asia and ahead of key U.S. inflation data due later this week. Flutter, which operates brands including Paddy Power and Betfair, has underperformed its peers in recent sessions amid concerns over regulatory scrutiny and advertising restrictions in major markets.
Analysts at Citi maintained a neutral rating on the stock, citing "heightened regulatory risks" in the U.K. and Europe, where advertising curbs and potential tax changes have weighed on sentiment. The brokerage trimmed its price target to 1,250 pence from 1,350 pence but kept its neutral stance, reflecting caution over near-term earnings visibility.
Flutter’s latest trading update, released last month, showed a 4% year-over-year decline in U.K. revenue for the first half of 2024, driven by tighter marketing rules. The company has since shifted focus toward regulated markets in the U.S., where it holds licenses in multiple states, though competition remains intense.
The stock’s recent underperformance has erased gains from earlier this year, with Flutter now trading roughly 8% below its 2024 peak reached in March. Investor focus remains on the company’s ability to balance growth in the U.S. with regulatory challenges in its core European markets.
Shares of Flutter Entertainment were last down 3.2% at 1,185 pence, extending losses from Monday’s close.
