Flutter Entertainment Sees Long-Term Growth, Plans Up To $5 Bln Share Buyback; Stock Climbs

Flutter Entertainment

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(RTTNews) - Shares of Flutter Entertainment Plc (FLUT, FLTR.L) were gaining around 9 percent on the London Stock Exchange as well as on the NYSE after the online sports betting and iGaming operator on Wednesday introduced medium-term 2027 growth guidance and the authorization of an up to $5 billion share repurchase program.

The share buyback program is expected to launch following third- quarter earnings in November 2024, and to be deployed over the next three to four years.

The company said it is well positioned to deliver significant profitable growth in the long-term with access to a large and growing total addressable market or TAM.

Going ahead, the company projects significant 2030 regulated TAM of $368 billion, global gross gaming revenue or GGR with forecast compound annual growth or CAGR of 8 percent.

Midpoint of US and ROW 2027 guidance is expected to deliver Flutter Group revenue of approximately $21 billion, representing three-year CAGR of 14 percent.

The company further projects fiscal 2027 adjusted EBITDA over $5 billion, and adjusted EBITDA margin expansion of 700 basis points to approximately 25 percent.

North American mature TAM is now expected to be around $70 billion, of which the US is forecast to be approximately $63 billion, 1.5 times the previous US market estimate, and Canada is estimated to be $7 billion.

In 2027, ROW regulated TAM is expected to be approximately $298 billion by 2030.

Peter Jackson, CEO, said, "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."

On the NYSE, Flutter shares were gaining around 8.7 percent to trade at $247.95.

In London, the shares were at 18,720 pence, up 9.47 percent.