Revenue target of USD 21 billion and share buyback target of USD 5 billion

Flutter sets sights on US and global expansion: $21 billion revenue target and $5 billion in share buybacks

Online Sports Betting and iGaming Company Flutter Entertainment Limited Liability Company The company’s (NYSE:FLUT) stock is rising after the company announced its mid-term guidance for 2027 and approved a share buyback program.

The company plans to reach revenue of approximately $21 billion in 2027, representing a compound annual growth rate (CAGR) of 14%, based on the average value of 2027 forecasts for the U.S. and the rest of the world.

Flutter also forecasts adjusted EBITDA of more than $5 billion by 2027, adjusted EBITDA margin growth of 700 basis points, and free cash flow of approximately $2.5 billion.

By 2030, the significant total addressable market (TAM) for regulated gambling is expected to reach $368 billion, with global gross gaming revenue (GGR) expected to grow at a compound annual growth rate (CAGR) of 8%.

Specifically, in the U.S., the long-term gross gaming revenue (GGR) margin for sportsbooks is forecast to be 16%, rising to 15% by 2027, translating into a net gaming revenue (NGR) margin of 12% for FanDuel.

For the Rest of the World (ROW), the company projects long-term compound annualized revenue growth rate of 5%-10%, with 2027 revenue expected to reach approximately $11.5 billion by mid-year including Snai and NSX, compared to current ROW revenue of approximately $9.5 billion.

Additionally, ROW cost efficiency improvement programs are projected to generate savings of $300 million in 2027.

In addition, the board approved a share repurchase program of up to $5 billion to be implemented over the next three to four years, with the program expected to launch after the company’s third-quarter earnings report in November 2024.

Flutter CEO Peter Jackson noted that the 2027 U.S. profit growth forecast is based on the current regulatory environment and is confident that potential tax changes will be offset.

The company is open to acquiring capabilities in the US and to M&A opportunities that extend beyond its fragmented global capabilities.

Read: Flutter Entertainment acquires Snaitech for €2.3 billion, aiming to dominate Italian online betting scene

Jackson also predicts that as new states open, the number of sports betting users in the U.S. will grow by about 2 percentage points per year.

Investors can gain exposure to stocks through VanEck Gaming ETF Fund (NASDAQ:BJK).

Price action:FLUT shares rose 7.6% to $245.50 at last trade on Wednesday.

Photo via the company

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This article Flutter Sets Expansion in the US and Globally: $21B Revenue Target, Share Buybacks in the Offing originally appeared on Benzinga.com