Flutter Entertainment has introduced its medium-term 2027 guidance and has authorised a share repurchase program of up to $5bn.
The operator made the announcements during its investor day, highlighting the projected developments across the group, in its US and Rest Of World segments (UKI, International and Australia), as well as its value-creation strategy.
Reflecting on this guidance, CEO Peter Jackson stated that Flutter can “continue to drive sustainable growth” to power its “financial model with operating leverage building over time”, providing capital allocation options.
Flutter spotlighted its leadership positions in the US and ROW thanks to its brand portfolio, noting that those brands benefit from Flutter Edge, helping them “benefit from, and contribute to, leading global capabilities including product and technology as well as the benefits of our vast expertise and our global scale”.
“With access to a large and growing total addressable market (TAM), we believe we are very well positioned to deliver significant profitable growth and value creation for shareholders in the long term,” stated the operator.
Regarding group projections, Flutter is forecasting global gross revenue for 2030 regulated TAM of $368bn with a compound annual growth of 8%, as well as US and ROW 2027 guidance midpoint to deliver group revenue of approximately $21bn with a 14% CAGR.
As a result of this guidance, the operator is expecting an adjusted EBITDA in 2027 of over $5bn with a margin expansion of 700 basis points to 25%, as well as free cash flow generation of approximately $2.5bn with a 36% CAGR.
Excluding potential new state launches between now and 2027, Flutter is forecasting North American mature TAM to be approximately $70bn, broken down as the US with approximately $63bn (previously $40bn during 2022 investor day) and Canada with an estimated $7bn.
Sportsbook structural GGR margin is expected to be 16% in the long-term, reaching 15% in 2027 and delivering FanDeul a long-term net gaming revenue margin of 12%.
Existing state revenue at the midpoint is expected to be $9.7bn in 2027 with a 15% to 17% CAGR, with an adjusted EBITDA midpoint of approximately $2.4bn and a margin expansion of 13 percentage points to approximately 25%, already within its 25% to 30% target range.
The operator added that there are further opportunities from states which haven’t regulated yet, backing its 80% sportsbook and 25% igaming population coverage expectations set out in 2022.
As for 2027 guidance for ROW, which now includes the recently announced Snai and NSX acquisitions, regulated TAM for the segment is expected to be approximately $298bn by 2030.
Long-term revenue CAGR is expected to be in the range of 5% to 10%, with 2027 revenue forecasted to have a midpoint of around $11.5bn ($9.5bn midpoint without listed acquisitions).
Cost efficiency programs in ROW are expected to produce savings of approximately $300m in 2027, resulting in an adjusted EBITDA midpoint of approximately $3bn with a margin of around 26% following a one to two percentage point expansion.
As part of its value-creation strategy, Flutter’s board has authorised a share buyback program of up to $5bn, expected to launch post-Q3 results in November 2024 and be deployed over the next three to four years.
The operator noted that the timing and actual number of shares repurchased will depend on several factors, including legal requirements, price, as well as economic and market conditions.
“Our medium-term target leverage ratio6 remains at 2.0-2.5x with the flexibility to be higher than this range in support of value-creating acquisition opportunities and where we have visibility that we will de-lever quickly,” Flutter said in its statement.
“The announced share repurchase program is expected to continue provided our leverage ratio is either within or below our target range, or is expected to reduce back into the target range in the near term.”
Jackson commented: “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 $370bn.
“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 $5bn of share repurchases over the next three to four years reflects our confidence in Flutter’s future.”
Gentoo Media has rebranded its automated compliance and brand protection tool from GiG Comply to Sitebee.
The service will continue to assist operators in the igaming industry with regulatory compliance across their brands and as they work with affiliate partners.
Gentoo Media noted that Sitebee will build upon GiG Comply’s legacy, automating compliance monitoring, saving time, reducing risks and helping companies gain marketing and affiliate partnership insights.
Rasmus Bank Nielsen, Head of Sitebee, commented: “Sitebee is more than just a rebrand. It’s a renewed commitment to our partners and the industry. Compliance doesn’t stand still, and neither do we.”
Sitebee’s list of client partners includes the likes of bet365, Betway, Kaizen Group and Betsson Group.
The GiG Comply rebranding follows the recent rebranding of Gaming Innovation Group Inc to Gentoo Media Inc, as well as the completion of the company’s split of its media and platform division into two independently listed companies – Gentoo Media and GiG Software PLC.
“Compliance is a moving target, and Sitebee is how businesses can stay ahead, not just keep up,” noted Nielsen.
“Our solution helps brands navigate complex regulatory landscapes by monitoring thousands of web pages in real-time to ensure adherence to laws across multiple jurisdictions.”
In addition, Sitebee ensures its client’s affiliate partners are regulatory compliant, providing detailed and actionable information to spot compliance breaches and growth opportunities, helping operators improve their decision-making with data.
Nielsen added: “With Sitebee, our clients gain insights that not only identify risks but also uncover new growth opportunities. Data is key, and we provide our clients with a clear picture of their affiliate landscape so they can act quickly and strategically.”
