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Flutter Entertainment has declared its medium-term goal to double its corporate earnings to more than $5bn by 2027.
The mid-term objective was affirmed to shareholders of the NYSE gambling group on Wednesday afternoon, as corporate governance laid out its strategic vision for sustained growth across existing markets, expansion within new markets and continued growth in the US.
FanDuel leads the way
Leadership underlined the prospect of US online gambling (sports betting and casino) will grow to $63bn by 2030, an increase of over 50% on prior forecasts made in 2022.
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”.
The company noted that by 2027, as more states legalise sports betting and online gaming, Flutter expects around 80% of the U.S. population will have access to regulated sports betting markets. FanDuel, which currently holds the largest market share in U.S. sports betting, is forecasted to continue its dominance, contributing significantly to the group’s revenue growth.
$5bn buyback and global M&A
Beyond the US, Flutter is focused on expanding its presence globally. In recent months, the company has made strategic acquisitions, including the purchase of Italy’s Snaitech for €2.3bn, and a stake in Brazil’s Betnacional. These acquisitions are part of Flutter’s broader strategy to tap into international markets and diversify its revenue base as the world’s largest online gambling group.
Alongside its earnings goal, Flutter forecasted a significant rise in group revenues, targeting $21bn by 2027, a sharp increase from the current estimate of $14bn. To further incentivise shareholders, the company also announced a $5bn share buyback program, reflecting its confidence in future cash flow generation and long-term value creation.
CEO Peter Jackson: 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.”
Leadership remains confident that the company’s strategic investments in technology, product innovation, and market expansion will secure its position as a global leader in online betting and gaming.
Peter Jackson, commented:“I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalize 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.
Jackson reiterated that regardless of political or regulatory shifts, the company’s long-term outlook remains positive, buoyed by strong consumer demand for its products and services. With continued growth in the US and a focus on expanding into new markets, Flutter is well-positioned to meet its ambitious profit goals by 2027.
