Zona de Azar Brazil – Flutter Authorizes $5 Billion Stock Buyback
Brazil.- October 1, 2024. www.zonadeazar.com – Flutter Entertainment has announced its medium-term goal of doubling its profits, reaching more than $5 billion by 2027.
This medium-term objective was communicated to the company’s shareholders on the NYSE (New York Stock Exchange) last Wednesday morning (25th), when leadership outlined its strategic vision for sustainable growth in existing markets, expansion into new markets, and continued growth in the United States.
FanDuel Leads
The company leadership highlighted the outlook that the online gaming market in the United States (encompassing both sports betting and online casino) will reach $63 billion in revenue by 2030, a more than 50% increase from predictions made in 2022.
Flutter noted that by 2027, as more states legalize sports betting and online gaming, the company expects about 80% of the U.S. population to have access to regulated markets. FanDuel, which currently holds the largest market share in sports betting in the U.S., is expected to maintain its dominance, significantly contributing to the group’s revenue growth.
$5 Billion Stock Buyback and Global Mergers and Acquisitions
Beyond the U.S., Flutter is focused on expanding its global presence. In recent months, the company has made strategic acquisitions, including purchasing Italy’s Snaitech for €2.3 billion and acquiring a stake in Brazil’s Betnacional. These acquisitions are part of Flutter’s strategy to explore international markets and diversify its revenue base as the largest sports betting and online gaming group in the world.
Alongside its profit goals, Flutter has forecasted significant revenue growth, aiming to reach $21 billion by 2027, a sharp increase from the current estimate of $14 billion. To further incentivize shareholders, the company announced a $5 billion stock buyback program, signaling its confidence in future cash flow generation and long-term value creation.
Peter Jackson, Flutter’s CEO, stated: “This will give us significant capital allocation options, enabling us to be a multi-faceted company, with the ability to invest in organic growth, engage in creative mergers and acquisitions, and also return a significant amount of capital to shareholders. Our intention to deliver up to $5 billion in stock buybacks over the next three to four years reflects our confidence in Flutter’s future.”
The company’s leadership remains confident that its strategic investments in technology, product innovation, and market expansion will secure its position as the global leader in the industry.
Jackson commented: “I’m very excited about Flutter’s trajectory and our position to capitalize on a nearly $370 billion regulated market. With our unmatched scale, diversification, and global differentiator—the Flutter Edge—we have clear sustainable global advantages that will continue to drive sustainable growth and enhance our financial model with increasing operational leverage over time.”
Flutter’s CEO reiterated that, regardless of political or regulatory changes, the company’s long-term outlook remains positive, driven by strong consumer demand for its products and services.
Edited by: @_fonta www.zonadeazar.com
