Shares of Flutter Entertainment Plc (FLUT, FLTR.L) surged by approximately 9 percent on the London Stock Exchange and the NYSE after the online sports betting and iGaming operator announced its medium-term growth guidance for 2027 and authorized a share repurchase program of up to $5 billion.
The buyback program is set to commence following the third-quarter earnings release in November 2024 and will be executed over the next three to four years.
The company highlighted its robust positioning for long-term profitable growth, leveraging a large and expanding total addressable market (TAM).
Looking ahead, Flutter projects a substantial regulated TAM of $368 billion by 2030, with global gross gaming revenue (GGR) anticipated to grow at a compound annual growth rate (CAGR) of 8 percent.
For 2027, the midpoint guidance for the U.S. and the rest of the world (ROW) predicts Flutter Group revenue to reach approximately $21 billion, translating to a three-year CAGR of 14 percent.
Additionally, the company forecasts an adjusted EBITDA of over $5 billion for fiscal 2027, along with an adjusted EBITDA margin expansion of 700 basis points to about 25 percent.
The North American mature TAM is now projected to be around $70 billion, with the U.S. market forecasted at approximately $63 billion, which is 1.5 times higher than previous estimates, and Canada expected to contribute $7 billion.
By 2030, the ROW regulated TAM is expected to reach around $298 billion.
Peter Jackson, CEO, stated, "With our unmatched scale, diversification, and our global differentiator, The Flutter Edge, we possess clear sustainable global advantages. These will continue to drive growth and bolster our financial model with increasing operating leverage over time. This strategic position offers us significant flexibility for capital allocation, enabling us to invest in organic growth, pursue value-accretive mergers and acquisitions, and return considerable capital to shareholders."
On the NYSE, Flutter shares rose by around 8.7 percent, trading at $247.95. In London, shares climbed to 18,720 pence, marking a 9.47 percent increase.
