Flutter Entertainment has outlined its long-term growth plan and announced a share repurchase program of up to $5 billion during its investors’ day.
According to the company’s investor press release, Flutter has introduced medium-term 2027 guidance that is expected to generate revenue of $21 billion. It also stated that its core profits are expected to hit $5 billion in 2027, double the $2.5 billion forecasted for 2024.
Key Financial Highlights
Group
- 2030 regulated total addressable market (TAM) – $368 billion in GGR
- CAGR up to 2030 – 8%
- 2027 Guidance – $21 billion in revenues
- 2027 Adjusted EBITDA – $5 billion
- 2027 Free cash flow – $2.5 billion
US & Canada 2027 Guidance
- North American mature TAM – $70 billion
- US TAM – $63 billion (1.5 times previous estimate)
- Canada TAM – $7 billion
- Sportsbook structural GGR – 15%
- Net Gaming Revenue (NGR) Margin FanDuel – 12%
- Exiting state revenue CAGR – $9.7bn
- Existing state projected Adjusted EBITDA – $2.4bn
ROW
- 2030 ROW regulated TAM – $298 billion
- 2027 revenue forecast – $11.5 billion
- 2027 ROW Adjusted EBITDA – $3 billion
Share Buyback Program
Flutter’s Board has approved a share buyback program of up to $5 billion. This is anticipated to be implemented over the next three to four years. The program is set to commence after the third-quarter earnings release in November 2024.
Peter Jackson, CEO, commented:
“I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalize on a global regulated addressable market of nearly $370bn. With our unmatched scale, diversification, and our global differentiator, The Flutter Edge, we have clear sustainable global advantages that will continue to drive sustainable growth and power our financial model with operating leverage building over time.
This will provide us with significant optionality for capital allocation, allowing us to be an “And” business with the capacity to invest for organic growth, and engage in value creative M&A, and also return a significant amount of capital to shareholders. Our intention to deliver up to $5bn of share repurchases over the next three to four years reflects our confidence in Flutter’s future.”
Following the announcement Flutter’s London shares were up by 5.2%. The company is currently ranked first out of the top 50 publicly traded gambling companies by market cap with a value of $41.21 billion.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
Flutter Entertainment, one of the world’s leading online gambling companies, has recently announced its ambitious goal of doubling its profits by the year 2027. The company, which owns popular brands such as Paddy Power, Betfair, and FanDuel, is confident that it can achieve this impressive growth through a combination of strategic investments and innovative new products.
One of the key factors driving Flutter’s optimism is the continued expansion of the online gambling market. With more and more people turning to the internet for their entertainment and leisure activities, the demand for online gambling services is only expected to grow in the coming years. Flutter is well positioned to capitalize on this trend, thanks to its strong brand recognition and loyal customer base.
In addition to expanding its existing offerings, Flutter is also looking to diversify its revenue streams by entering new markets and launching new products. The company has already made significant investments in emerging markets such as the United States, where online gambling is becoming increasingly popular. By leveraging its expertise and resources, Flutter believes it can capture a significant share of these new markets and drive growth in the years ahead.
Another key driver of Flutter’s projected profit increase is its focus on innovation. The company is constantly developing new technologies and features to enhance the user experience and attract new customers. From cutting-edge mobile apps to live streaming services, Flutter is committed to staying ahead of the competition and providing its customers with the best possible gaming experience.
Of course, achieving a 100% increase in profits by 2027 will not be easy, and Flutter will face a number of challenges along the way. Regulatory changes, economic uncertainties, and evolving consumer preferences are just a few of the factors that could impact the company’s bottom line. However, with its strong track record of success and commitment to innovation, Flutter is well positioned to overcome these challenges and achieve its ambitious goal.
Overall, Flutter Entertainment’s prediction of a 100% increase in profits by 2027 is an ambitious but achievable goal. With a solid strategy, a strong brand, and a focus on innovation, the company is well positioned to capitalize on the growing online gambling market and deliver strong returns for its shareholders in the years ahead.
