Flutter’s Profits Set to Double by 2027 with Major US Expansion and $5 Billion Share Buyback

Flutter, the largest online betting company in the world, has announced a significant financial forecast, predicting that its core profits will more than double by 2027. The company plans to achieve this ambitious target through growth in the U.S. market and a share buyback program of up to $5 billion. Flutter’s expansion, driven by the surging U.S. sports betting market, marks a major milestone for the company.

Flutter’s Bold Financial Forecast: Doubling Core Profits by 2027

The global betting giant Flutter has set its sights on increasing its core profits significantly over the next few years. With a forecasted profit of $2.5 billion for the current year, the company expects this figure to exceed $5 billion by 2027. A large portion of this growth will come from the U.S., where Flutter’s FanDuel brand is thriving, thanks to the rapid expansion of sports betting.

Key Financial Goals

• Current Profit Forecast: Flutter projects full-year profit of approximately $2.5 billion for 2023.
• Profit Target for 2027: By 2027, Flutter anticipates core profits to reach more than $5 billion.
• U.S. Market Contribution: Nearly half of this future profit is expected from the U.S., where the market is growing faster than initially predicted.

This growth is fueled by the legal sports betting industry, which has seen a massive boom since the 2018 repeal of the U.S. sports betting ban. FanDuel, Flutter’s flagship brand in the U.S., has become the dominant player in this market.

U.S. Sports Betting: The Game Changer for Flutter

The U.S. market has been transformative for Flutter, with its FanDuel brand leading the way. The company is confident that its profits in the U.S. will skyrocket from $680 million to $800 million in 2023 to around $2.5 billion by 2027. This impressive growth reflects the increasing popularity of sports betting in the U.S., with more states legalizing and embracing the industry.

U.S. Market Growth Highlights

• 2023 Profit Projection: Flutter expects core U.S. profits to fall between $680 million and $800 million.
• 2027 Profit Target: Flutter anticipates U.S. profits to reach $2.5 billion by 2027.
• U.S. Market Size: Flutter now estimates the total U.S. market to grow to $63 billion by 2030, compared to a previous forecast of $40 billion.

This revision signals that Flutter views the U.S. as an even bigger opportunity than initially thought. The company’s heavy investments in FanDuel and the rapidly growing customer base are key drivers behind this increased forecast.

Share Buyback Plan: $5 Billion to Be Deployed Over Four Years

Alongside its profit forecast, Flutter announced a $5 billion share buyback plan, set to begin after its third-quarter earnings in November. This buyback program is designed to boost shareholder value over the next three to four years, using Flutter’s growing profits to return capital to investors.

Buyback Program Details

• Start Date: The buyback is expected to commence following the third-quarter earnings report in November.
• Total Buyback Amount: Flutter has authorized a share buyback of up to $5 billion.
• Deployment Timeline: The program will be executed over a three to four-year period.

This move reflects Flutter’s confidence in its future growth and its commitment to returning value to its shareholders. The share buyback is expected to further solidify Flutter’s position as a global leader in the betting industry.

Flutter’s Global Expansion Beyond the U.S.

While the U.S. remains a key growth area for Flutter, the company is also focused on expanding its presence globally. Recent acquisitions in Italy and Brazil are expected to contribute to the company’s international growth.

Global Market Contributions

• European Operations: Flutter’s brands like Paddy Power and Betfair continue to dominate in the UK and Europe.
• Australian Success: Sportsbet remains a leading brand in Australia, contributing significantly to Flutter’s overall profits.
• Recent Acquisitions: Flutter has expanded its footprint in Italy and Brazil, further diversifying its global portfolio.

These acquisitions are part of Flutter’s strategy to build a more diverse and stable revenue stream across different markets, helping the company mitigate risks associated with reliance on any single region.

What the Future Holds for Flutter

Flutter’s impressive financial projections and aggressive expansion plans demonstrate its ability to capitalize on the growing sports betting market, particularly in the U.S. With a strong presence across Europe, Australia, and now the rapidly expanding U.S. market, Flutter is well-positioned to continue its upward trajectory.

Key Takeaways

• Profit Growth: Flutter expects to double its profits by 2027, driven largely by U.S. expansion.
• Share Buyback: The company has authorized a $5 billion share buyback to be executed over the next four years.
• Global Expansion: Acquisitions in Italy and Brazil further bolster Flutter’s international growth prospects.

As Flutter continues to lead the online betting industry, it is clear that its bold strategies and market leadership will shape the future of global sports betting.

Related FAQs

What is Flutter’s current profit forecast for 2023?
Flutter expects its full-year profit for 2023 to be around $2.5 billion.

How much does Flutter expect its U.S. profits to grow by 2027?
Flutter anticipates its U.S. profits to reach $2.5 billion by 2027, up from the $680 million to $800 million expected in 2023.

What is the total size of the U.S. sports betting market by 2030?
Flutter forecasts that the U.S. sports betting market will grow to $63 billion by 2030.

When will Flutter start its share buyback program?
The share buyback program is expected to start after the company’s third-quarter earnings report in November.

What other markets are contributing to Flutter’s growth?
In addition to the U.S., Flutter’s recent acquisitions in Italy and Brazil are expected to contribute to its global profit growth.

Flutter’s Future Growth: The Global Betting Leader Continues to Thrive

Flutter’s aggressive financial forecasts, U.S. market dominance, and strategic buyback program are positioning it for substantial growth over the next few years. With its FanDuel brand leading the charge in the U.S. and expansion into new markets like Brazil and Italy, Flutter is set to remain a powerhouse in the global betting industry. Investors and stakeholders alike will be keen to see how the company executes its growth strategy, especially with the promise of significant shareholder returns through the share buyback initiative.