Flutter Entertainment (NYSE: FLUT) announced new medium-term guidance through 2027 on Wednesday, projecting stronger-than-expected growth in North America, led by its dominant FanDuel division. The company also revealed plans to repurchase up to $5 billion of its shares over the next few years.
The Dublin-based gaming giant anticipates the global regulated gross gaming revenue (GGR) market to reach $368 billion by 2030, with an 8% compound annual growth rate (CAGR). For 2027, Flutter predicts $21 billion in revenue at the midpoint of its US and international (ROW) forecasts, reflecting a 14% CAGR over three years.
By 2027, Flutter expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to surpass $5 billion, with a 700 basis-point increase in margins. Free cash flow could rise to $2.5 billion by 2027, a 36% CAGR.
Flutter’s Share Buyback Signals Confidence
This buyback plan is Flutter’s first since its debut on the New York Stock Exchange earlier this year, signaling long-term confidence in the company’s performance, said CEO Peter Jackson.
The board has approved a $5 billion share buyback program, to be carried out over the next three to four years. The buyback is expected to begin following the company’s Q3 earnings report in November 2024. Flutter noted that the timing and volume of repurchases will depend on factors such as market conditions, legal requirements, and stock price.
FanDuel’s leading position in North America, where it is one of the largest operators of iGaming and online sports betting, is a major driver of Flutter’s optimism. The company now estimates the total addressable market in North America at $70 billion—$63 billion from the US and $7 billion from Canada—representing a 50% increase from earlier projections.
The 2027 guidance is based on FanDuel’s current presence in operational states and does not account for potential future expansions in iGaming or sports betting.
“Existing state projections indicate adjusted EBITDA of around $2.4 billion at the midpoint, with margin expansion of 13 percentage points to approximately 25% by 2027,” said the company.
Global Expansion Fuels Flutter’s Growth
Although Flutter is best known for FanDuel, its global presence gives it an edge over US-focused competitors, adding to its long-term growth potential. The company expects the global regulated wagering market to reach $298 billion by 2030.
“Our scale and diversification should drive a long-term revenue CAGR of 5%-10% in international markets, with 2027 revenue projected at $11.5 billion at the midpoint,” the company said.
This optimistic outlook is further supported by Flutter’s recent acquisitions of a 56% stake in Brazil’s NSX Group and Snaitech in Italy. Both deals are expected to close by the second quarter of 2025.
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