Paul Edgecliffe-Johnson, the chief financial officer of Flutter, has resigned amid the company’s focus shift to the US. With the firm’s core stock exchange listing transitioning from London to New York, the Paddy Power Betfair parent company will commence trading in New York this coming Friday. With immediate effect, Edgecliffe-Johnson has been replaced by Rob Coldrake, who is currently in charge of the company’s international unit’s financial operations.
In a candid statement released Friday, Flutter reported that Edgecliffe-Johnson’s departure was in the best interest of the company due to the extensive executive management time that needs to be spent in the US. This comes in light of his family obligations in the UK, a topic recently discussed in depth by the board.
Almost all investors, approximately 98%, cast their vote in favour of the company transitioning its primary listing from London to Wall Street, as decided at the annual general meeting in early May.
Company CEO, Peter Jackson, emphasised that this shift marked a significant progression for the company, reflecting the important role of the US sports betting and iGaming market in their business strategy. He further mentioned the company’s strong position in the US with FanDuel, their subsidiary, leading the market.
The company has been active on the New York market since January this year, citing the benefit of greater liquidity and trading volumes over London and Dublin. CEO Peter Jackson stated that should European markets wish to attract and retain new businesses, a focus on improving liquidity would be necessary.
The company parted ways with the Irish Stock Exchange in 2020 but continues to consider Ireland a crucial element of its identity, being its founding location and remaining the location for their headquarters. Through FanDuel, the company has been rapidly establishing a strong foothold in the US business sector since a 2018 federal court ruling allowing individual states to legalise sports betting.
Anticipations are that the conglomerate will generate US revenue ranging from $635 million (€594 million) to $785 million within the present year. The company dominates the sports betting market, particularly with regards to the United States’ National Football League and basketball.
FanDuel, the largest subsidiary within the collective, forms part of the larger network including Betfair, Sky Bet, Pokerstars, and Australia’s Sportsbet, with further global operations.
Flutter’s decision to transfer its main listing from London to New York entails its departure from the FTSE 100 Index in London this month. Flutter is not the first to relocate its primary listing from London to New York, CRH, an Irish construction material collective, is among the predecessors. This move has dealt a blow to London’s standing as a financial hub.