By BBBB
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.
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