Flutter Entertainment has unveiled its strategic growth plan ahead of its investor event on September 25 at 13:00 ET (18:00 BST). With a focus on expanding revenue streams, boosting profitability, and capitalizing on growing markets, Flutter is poised to solidify its position as one of the dominant forces in the industry. The company’s roadmap provides a detailed vision of how it plans to navigate both the US and international markets, outlining impressive revenue and EBITDA targets through 2027.
Flutter Entertainment Unveils Strategic Growth Plan for the Coming Years
Projected Financial Performance: A Bold Revenue and EBITDA Growth Path
At the core of Flutter Entertainment’s growth strategy is its revenue forecast, with the company targeting approximately $21 billion by 2027, representing a compound annual growth rate (CAGR) of 14% over the next three years. This anticipated growth is spread across its operations in both the US and the rest of the world (ROW). Flutter has also forecasted that its adjusted EBITDA is expected to surpass $5 billion by 2027, underscoring the company’s growing profitability as it scales its operations globally.
Flutter’s management has laid out a vision for sustainable, long-term growth, with particular emphasis on its activities in the United States, a market that has become increasingly central to its overall business strategy.
The United States: A Key Driver of Growth
Since shifting its primary listing to New York earlier this year, Flutter Entertainment has emphasized the importance of the US market. This market is projected to grow at a faster pace than initially anticipated. Flutter has revised its US market forecast, predicting that the total market size will reach $63 billion by 2030, a significant increase from previous estimates in 2022. The company’s optimism stems from the ongoing wave of sports betting legalization across numerous US states, driving strong demand for regulated online gambling services.
In this context, Flutter has set ambitious targets for its US operations. The company expects its existing state revenue in the US to reach around $9.7 billion by 2027, at the midpoint of its guidance. This growth trajectory is complemented by projected adjusted EBITDA in the US of approximately $2.4 billion, also at the midpoint.
Flutter’s strategic focus on the US market is clear, with plans to expand its offerings and capitalize on the rapidly growing online sports betting and gaming sector. By leveraging its established presence and brand strength in the US, the company aims to capture a significant share of this burgeoning market and outpace competitors.
Rest of the World: Strong Growth Beyond the US
While the US remains a major focus, Flutter Entertainment is also positioning itself for growth in other international markets. For the rest of the world, the company is forecasting total revenue of approximately $11.5 billion by 2027, with an expected adjusted EBITDA of $3 billion, both at the midpoint of its guidance.
This growth will be driven by a combination of expanding market share in existing markets, entering new territories, and further digital transformation efforts. As more countries move toward legalizing and regulating online gambling, Flutter is well-positioned to take advantage of new opportunities, thanks to its global footprint and expertise in navigating complex regulatory environments.
By expanding in both the US and internationally, Flutter seeks to diversify its revenue streams, mitigate regional risks, and drive consistent, long-term growth across its portfolio of brands.
Capital Allocation: $5 Billion Share Repurchase Program
As part of its broader financial strategy, Flutter has introduced an up to $5 billion share repurchase program, which it plans to deploy over the next three to four years. This capital return initiative will begin following the release of its Q3 earnings in November 2024. The buyback program reflects Flutter’s confidence in its future growth prospects and its commitment to delivering value to shareholders.
By repurchasing its shares, Flutter aims to enhance shareholder returns while maintaining flexibility to invest in organic growth and pursue strategic mergers and acquisitions (M&A). This balanced approach to capital allocation highlights Flutter’s financial strength and its focus on sustainable, long-term value creation.
The Flutter Edge: Leveraging Scale and Diversification
One of the critical factors underpinning Flutter Entertainment’s growth strategy is its unmatched scale and diversification. With a global regulated addressable market estimated at nearly $370 billion, Flutter is in a strong position to leverage its vast resources and extensive portfolio of brands to capture significant market share.
Flutter’s CEO, Peter Jackson, has emphasized the company’s global competitive advantage, which he refers to as “The Flutter Edge.” This strategic differentiator is built on a combination of operational scale, technological innovation, and market-leading expertise. According to Jackson, these factors give Flutter a sustainable global advantage and enable the company to capitalize on new opportunities as they arise.
The company’s scale not only allows it to compete effectively in established markets but also provides it with the flexibility to adapt quickly to emerging trends and regulatory changes in new markets. With its diversified portfolio, Flutter is also less reliant on any single market or product, reducing risk and enhancing its long-term growth potential.
Sustainable Growth and Operating Leverage
Flutter’s long-term growth strategy is not just focused on revenue and EBITDA targets. The company also aims to achieve operating leverage over time, which will further boost its profitability. As Flutter continues to scale its operations, it expects to drive efficiencies across its business, leading to margin expansion and greater profitability.
This operating leverage will provide Flutter with significant optionality when it comes to capital allocation. The company will be able to invest in both organic growth initiatives and pursue value-creating M&A opportunities, all while continuing to return capital to shareholders through its share repurchase program.
Looking Ahead: A Clear Path to Future Success
Flutter Entertainment’s growth strategy is clear, comprehensive, and built on a foundation of sustainable growth. With a focus on expanding its presence in both the US and international markets, driving profitability through scale and diversification, and delivering value to shareholders, Flutter is well-positioned to maintain its leadership position in the global gaming and sports betting industry.
By 2027, the company expects to achieve significant milestones, including reaching over $21 billion in revenue and $5 billion in adjusted EBITDA, with a strong balance between US and international contributions. With the combination of its share repurchase program, capital flexibility, and operational scale, Flutter is set to continue delivering value to both customers and shareholders alike.
FAQs About Flutter Entertainment’s Growth Plan
1. What is Flutter Entertainment’s growth projection for the next few years?
Flutter Entertainment has outlined a growth plan targeting approximately $21 billion in revenue by 2027, representing a 14% compound annual growth rate (CAGR). The company also expects to exceed $5 billion in adjusted EBITDA by the same year.
2. Why is the United States important to Flutter’s growth strategy?
The US market has become a key driver of Flutter’s business, especially since its primary listing moved to New York. Flutter predicts the US sports betting and gaming market will grow to $63 billion by 2030, offering significant opportunities for expansion and revenue growth.
3. How much revenue does Flutter expect from the US market by 2027?
Flutter estimates that existing state revenue from the US market will reach around $9.7 billion by 2027, with adjusted EBITDA expected to hit $2.4 billion at the midpoint.
4. What is the growth outlook for Flutter outside the US?
For the rest of the world (ROW), Flutter anticipates revenue of around $11.5 billion by 2027, with an expected adjusted EBITDA of $3 billion. This growth will come from expanding its presence in existing and new international markets.
5. What is “The Flutter Edge”?
“The Flutter Edge” refers to Flutter Entertainment’s strategic advantage, built on its scale, diversification, and technological innovation. This competitive edge enables the company to operate effectively in both mature and emerging markets, ensuring sustainable growth.
6. How will Flutter achieve sustainable growth over time?
Flutter aims to drive operating leverage as it scales its operations, leading to greater efficiency and margin expansion. This will allow the company to invest in organic growth, pursue strategic M&A, and return capital to shareholders.
7. What role does diversification play in Flutter’s strategy?
Diversification is central to Flutter’s growth plan. By spreading its operations across the US and international markets, Flutter reduces its reliance on any single market, mitigating risks and creating a balanced global business portfolio.
8. How does Flutter view the global market opportunity?
Flutter’s CEO, Peter Jackson, stated that the global regulated addressable market is worth nearly $370 billion. Flutter is well-positioned to capitalize on this vast opportunity through its scale, operational efficiency, and strategic focus.
9. What financial milestones does Flutter expect to reach by 2027?
By 2027, Flutter expects to achieve $21 billion in revenue, with $5 billion in adjusted EBITDA, driven by both its US and international operations.
