Flutter Entertainment outlined its growth plans for the coming years ahead of an investor event.
For the entire group, the operator indicated that the median guidance for the US and other parts of the world is expected to generate about $21 billion in revenue, implying a three-year compound annual growth rate of 14%. Accordingly, adjusted EBITDA for 2027 is expected to exceed $5 billion.
The US has become a key aspect of Flutter's business, especially since its main listing location moved to New York earlier this year. The company believes that by 2030, the US market will grow to $63 billion, surpassing its initial growth expectations set in 2022, for obvious reasons.
Therefore, Flutter believes that by 2027, revenue from existing US states will reach about $9.7 billion (median), while adjusted EBITDA from these states is expected to be about $2.4 billion (median).
Looking at other parts of the world, the median revenue for 2027 is expected to be about $11.5 billion, with adjusted EBITDA estimated to be around $3 billion.
Under this growth strategy, Flutter has also launched a stock buyback program of up to $5 billion, expected to be deployed over the next three to four years. The plan is expected to be launched after the third quarter financial report in November.
Flutter CEO Peter Jackson said: "I am very excited about Flutter's strong growth trajectory, and our ability to leverage a potential regulated global market of nearly $370 billion. With our unmatched scale, diversity, and our global differentiator Flutter Edge, we have a clear sustainable global advantage that will continue to drive sustainable growth and support our financial model by building operational leverage over time.
"This will provide us with significant capital allocation options, making us an 'And' company, capable of investing in organic growth, participating in value-creating mergers and acquisitions, and returning substantial capital to shareholders. We plan to buy back up to $5 billion in stock over the next three to four years, reflecting our confidence in Flutter's future."
Influenced by this news, Flutter's stock price on NASDAQ rose to $248.30 at the time of writing this article (British Summer Time 15:26), an 8.8% increase from the closing price of $228.17 on September 24.
This news was released following some significant transactions in Flutter's development process, including the acquisition of shares in Brazil's NSX Group for about $350 million in cash, and last week Playtech sold its Italian sports betting and gaming company Snaitech to Flutter for a total enterprise value of €2.3 billion ($2.6 billion).
