Published on: September 25, 2024, 06:39h.
Last updated on: September 25, 2024, 06:39h.
Flutter Entertainment (NYSE: FLUT) unveiled medium-term guidance for 2027 on Wednesday, projecting strong growth in North America where its FanDuel unit leads while also announcing a potential share repurchase of up to $5 billion in the coming years.
The Dublin-based gaming company envisions the total addressable market for regulated global gross gaming revenue (GGR) reaching $368 billion by 2030, with an 8% compound annual growth rate. Flutter’s 2027 forecasts for the US and rest of the world (ROW) suggest revenue of $21 billion, reflecting a three-year CAGR of 14%.
This would lead to 2027 adjusted EBITDA exceeding $5 billion with a 700 basis points margin expansion. The company anticipates free cash flow generation in 2027 to hit $2.5 billion, representing a 36% CAGR.
Confident Flutter Announces Share Repurchase
Flutter’s move to initiate a share repurchase program reflects its belief in the long-term prospects of the company, CEO Peter Jackson stated.
The Board has authorized a share buyback program of up to $5bn, expected to be deployed over the next three to four years, and expected to launch following our third quarter earnings in November 2024. The timing and the actual number of shares repurchased will depend on a variety of factors, including legal requirements, price, and economic and market conditions,” according to the press release.
Confidence is particularly strong in North America, where FanDuel leads in iGaming and online sports betting. Flutter now estimates the total addressable market in North America at $70 billion, with the US accounting for $63 billion and Canada for $7 billion. The US forecast is 1.5 times higher than previous estimates.
The 2027 forecast by Flutter is only for existing states where FanDuel operates and does not account for potential expansion into more states legalizing iGaming and sports betting.
“Existing state projected Adjusted EBITDA of approximately $2.4bn at the midpoint with Adjusted EBITDA margin expansion of 13 percentage points to approximately 25% by 2027,” noted the company.
Global Growth Outlook for Flutter
While Flutter is commonly known for FanDuel, its presence in markets outside the US distinguishes it from competitors and enhances its growth potential. Beyond the US, Flutter projects a total addressable market of $298 billion for global regulated wagering by 2030.
“Our unmatched scale and diversification, is expected to deliver a ROW long-term revenue CAGR of 5%-10% with 2027 revenue forecast to be approximately $11.5bn at the midpoint,” added the company.
Flutter highlighted that its outlook is supported by the recent acquisitions of a 56% stake in Brazil’s NSX Group and Snaitech in Italy, both set to finalize by the second quarter of 2025.