Flutter predicts $21B revenue in 2027, approves up to $5 billion share buyback

Flutter Entertainment, the owner of Paddy Power and FanDuel, unveiled its long-term growth strategy announcing new financial targets for 2027 and authorizing a share repurchase program of up to $5 billion. The world’s leading online sports betting and iGaming operator expects to capitalize on a rapidly growing total addressable market (TAM) and deliver substantial profitable growth over the coming years.

Flutter projects a regulated TAM of $368 billion in global gross gaming revenue by 2030, with an anticipated CAGR of 8%. By 2027, the company expects to generate about $21 billion in revenue, representing a three-year CAGR of 14%. Flutter also forecasts its adjusted EBITDA to exceed $5 billion by 2027, with a free cash flow of around $2.5 billion and an adjusted EBITDA margin expansion of 700 basis points to 25%.

Flutter remains bullish on the U.S. market, which it expects to grow to a TAM of $63 billion by 2027 — 1.5 times its previous estimates. Flutter's FanDuel brand is projected to drive this growth with a sportsbook gross gaming revenue (GGR) margin reaching 15% by 2027, contributing to an expected existing-state revenue CAGR of 15-17%. Flutter forecasts existing-state adjusted EBITDA of about $2.4 billion, with margin expansion to 25% by 2027.

Flutter’s “Rest of World” (ROW) operations are projected to benefit from its acquisitions of Snai and NSX, expected to close by mid-2025. The ROW TAM is forecast to reach $298 billion by 2030, with revenue growth of 5-10% annually, resulting in 2027 revenue of about $11.5 billion. Flutter’s cost-efficiency initiatives are expected to save around $300 million in 2027, boosting its ROW adjusted EBITDA margin to 26%.

Flutter’s board has approved a share repurchase program of up to $5 billion, set to begin after its Q3 2024 earnings release in November. The buyback is expected to be completed over the next three to four years, subject to market conditions and legal requirements. The company also reaffirmed its medium-term leverage target of 2.0-2.5x, allowing flexibility for further acquisitions.

Peter Jackson

Peter Jackson, CEO of Flutter, said: "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 $370 billion. 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."

Flutter's intention to deliver up to $5 billion of share repurchases over the next three to four years reflects their confidence in Flutter’s future, Jackson added.