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Flutter Entertainment forecasts revenue of $21 billion in 2027

26th September 2024 10:12 am GMT
Flutter Entertainment

Shares in Flutter Entertainment closed 5.12 per cent higher in New York Wednesday after the company’s Board authorised a $5 billion share repurchase program and introduced its medium-term 2027 guidance.

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

“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,” said Flutter CEO Peter Jackson. “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 $5 billion of share repurchases over the next three to four years reflects our confidence in Flutter's future.”

Flutter also outlined its long-term growth plan and expects to deliver revenue of around $21 billion from the United States and Rest of World segments in 2027, representing three-year compound annual growth of 14 per cent, and adjusted EBITDA of more than $5 billion.

In the United States, the company forecasts sportsbook structural gross gaming revenue margin to reach 15 per cent in 2027, delivering a long-term net gaming revenue margin of 12 per cent for FanDuel.

Flutter expects existing state revenue CAGR of 15-17 per cent, or approximately $9.7bn at the midpoint, with adjusted EBITDA of $2.4 billion.

In the Rest of World segment, revenue is expected to reach $11.5 billion at the midpoint, including the recently announced acquisitions of Snai and NSX. Cost efficiency programs are forecast to create savings of more than $300 million in 2027.

This is expected to deliver ROW adjusted EBITDA margin expansion of 1-2 percentage points to 26 per cent in 2027 and $3bn at the midpoint.

Shares in Flutter Entertainment plc (NYSE:FLUT) closed 5.12 per cent higher at $239.86 per share in New York Wednesday.