Flutter Entertainment has outlined its growth plan for the next few years ahead of its investor event taking place today at 13:00 ET (18:00 BST).
For the group as a whole, the operator has stated that the midpoint of US and the rest of world guidance is expected to deliver revenue of approximately $21bn, which would represent three-year compound annual growth of 14%. With this, it would be expected that adjusted EBITDA in 2027 would be over $5bn.
The US has become a key aspect of Flutter’s business, especially since its primary listing shift to New York earlier this year and with the company believing the US market will be growing to $63bn by 2030, more than it had originally anticipated back in 2022, its clear to see why.
As a result, Flutter believes by 2027 existing state revenue will be about $9.7bn, at the midpoint, while existing state projected adjusted EBITDA will be around $2.4bn at the midpoint in the US.
Looking further afield for the rest of world, 2027 revenue is forecasted to be approximately $11.5bn at the midpoint with adjusted EBITDA expected to be around $3bn at the midpoint.
Flutter, with this growth strategy, also introduced the authorisation of an up to $5bn share repurchase program, which is expected to be deployed over the next three to four years. It is expected to be launched following its Q3 earnings in November.
Flutter CEO Peter Jackson said: “I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalise 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.”
In the wake of this news, Flutter’s share price grew on Nasdaq to $248.30 at the time of writing (15:26 BST), up 8.8% from the closing price of $228.17 on 24 September.
This news also comes in the wake of some big deals for Flutter in its growth, acquiring a stake in NSX Group in Brazil for a cash consideration of approximately $350m, while Playtech last week sold its Italian sports betting and gaming company, Snaitech, to Flutter for a total enterprise value of €2.3bn ($2.6bn).
