Better and better, leading-edge Flutter Entertainment has just launched an audacious US$5 billion share buy-back programme that may well supercharge its bid to become the world’s top sports betting and iGaming operator.
The bold move by CEO Peter Jackson follows Flutter’s repositioning of the Irish and U.K. origin Omnichannel as a U.S.-centric player earlier this year by moving its primary stock market listing from ailing London to hard-charging Wall Street; while deftly reinforcing its leadership of America’s intense and coming fantasy sports sector.
Jackson, who shares his name with the filmic creator of “The Lord of the Rings” mega-trilogy, outlined Flutter’s new long-term growth strategy at a major investor event in New York this week that introduced the company’s 2027 financial guidance.
Flutter–owner of leading U.S. sportsbook FanDuel, British and Irish gambling icon Paddy Power, Betfair, PokerStars, Sky Betting & Gaming, et al–has now authorised the repurchase of up to US$5 billion worth of its shares (£3.75bn/€4.49bn) over the next three-years.
Profitable
Jackson (pictured, below) told current and putative investors that the fiscal roadmap would: “Enable [Flutter] to deliver significant profitable growth…and long-term value creation for shareholders.”
Mining the progressive financial strategy, Jackson reminded a rapt audience of big swinging money men and women that the Total Addressable Market (TAM) in global Regulated Markets is expected to hit the equivalent of US$368 billion by 2030 (£276.23bn/€330.56bn), with a compound annual growth rate of some eight percent.
Flutter itself expects to reach group revenue of some US$21 billion by 2027 (£15.76bn/€18.86bn), with Adjusted EBITDA of over US$5 billion.
North America–the U.S. and Canada, excluding Mexico–will have a TAM of approximately US$70 billion (£52.55bn/€62.87bn), the lion’s share, US$63 billion (£47.29bn/€56.58bn), accruing to the U.S. alone, Flutter outlined in its financial presentation.
Flutter, quite naturally, expects its ace FanDuel brand to continue to deliver outstanding results; with Net Gaming Revenue of some 12 percent and Gross Gaming Revenue of 16 percent.
Unmatched
On a wider spectrum, Flutter is expecting to harvest the equivalent of some US$11.5 billion in its Rest of The World markets (£8.63bn/€10.33bn) by 2027, boosted by its recent acquisitions of leading Italian iGaming outfit Snai and Brazilian online sports betting booster NSX.
Cost efficiency programmes, furthermore, are expected to generate around US$300 million in savings by magic 2027 (£225.19m/€269.48m) — helping to drive Adjusted EBITDA margins to 26 percent and dealing a projected EBITDA of US$3 billion (£2.25bn/€2.69bn).
Affirmed Jackson: “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 US$370 billion.
“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 US$5 billion of share repurchases over the next three-to-four-years reflects our confidence in Flutter’s future.”
