Flutter Entertainment (NYSE: FLUT) unveiled its medium-term guidance for 2027 on Wednesday, predicting stronger-than-anticipated growth in North America, where its FanDuel segment leads the market, and informing investors that it may buy back as much as $5 billion in its shares over the coming years.
The gaming firm located in Dublin anticipates that the total addressable market for regulated worldwide gross gaming revenue (GGR) will expand to $368 billion by 2030, indicating a compound annual growth rate (CAGR) of 8%. At the halfway point of its 2027 US and rest of the world (ROW) predictions, Flutter projected 2027 revenue to reach $21 billion, reflecting a three-year CAGR of 14%.
This would lead to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeding $5 billion in 2027, along with a margin increase of 700 basis points. The Betfair parent indicated that free cash flow generation in 2027 could hit $2.5 billion, representing a 36% CAGR.
Flutter's Buyback Shows Assurance
Flutter's intention to return capital to shareholders through a repurchase program marks the operator's first announcement of this kind since its listing on the New York Stock Exchange (NYSE) earlier this year, demonstrating long-term confidence in the company, stated CEO Peter Jackson in a statement.
"The Board has authorized a share buyback program of up to $5bn, expected to be deployed over the next three to four years, and expected to launch following our third quarter earnings in November 2024. The timing and the actual number of shares repurchased will depend on a variety of factors, including legal requirements, price, and economic and market conditions,” according to the press release.
North America is a major source of that confidence, with FanDuel being one of the largest operators in iGaming and online sports betting. Flutter currently estimates its total addressable market in North America to be $70 billion — $63 billion for the US and $7 billion for Canada. That US prediction is 1.5 times greater than earlier estimates.
The 2027 forecast released by Flutter relies on the current states where FanDuel operates and does not account for the potential of additional states legalizing iGaming, sports betting, or both.
“Existing state projected Adjusted EBITDA of approximately $2.4bn at the midpoint with Adjusted EBITDA margin expansion of 13 percentage points to approximately 25% by 2027,” added the company.
Worldwide Expansion Backs Flutter
Although Flutter is commonly seen as the parent company of FanDuel, the gaming firm's presence in markets beyond the US distinguishes it from certain competitors domestically and enhances its long-term growth narrative. Beyond the US, Flutter projected a total addressable market of $298 billion for worldwide regulated betting by the year 2030.
"Our unmatched scale and diversification, is expected to deliver a ROW long-term revenue CAGR of 5%-10% with 2027 revenue forecast to be approximately $11.5bn at the midpoint,” added the company.
Flutter stated that its outlook is strengthened by the recent acquisitions of a 56% stake in Brazil’s NSX Group and Snaitech in Italy. Both transactions are set to conclude by the second quarter of 2025.
