Stock rises 8%
Flutter Entertainment’s investor day has likely left competitors quaking in their boots following a raft of announcements that prompted its stock price to rise by over 8%.
group revenue to reach $63bn by 2027
The stock pop came Wednesday after Flutter projected its group revenue to reach $63bn by 2030 in the US market, a pulse-racing 50% increase against its previous forecast in 2022.
The Dublin, Ireland-based group also expects its adjusted core profit to climb to “over $5bn” in 2027, against this year’s projection of $2.5bn. Flutter’s US iGaming market will account for nearly half of the 2027 forecast, approximately $2.4bn of adjusted core profit, according to the Financial Times.
Flutter’s fantasy-like financial outlook is driven by the relentless growth of US sports betting and the performance of its subsidiary FanDuel.
FanDuel gives Flutter wings
Flutter CEO Peter Jackson expressed his optimism on his group’s runaway growth with Yahoo Finance on Wednesday, attributing the parent brand’s success to “the quality” of its sports betting behemoth FanDuel.
Jackson went on to proclaim FanDuel’s value and user experience “the best in the market.” This advantage “is what is enabling us to win” the US sports betting war, the CEO said.
Flutter expects to pocket $740m of adjusted core profit for FanDuel this year. The New York-based brand recorded the greatest US digital sports betting market share “in the three months to June” at 53%, according to investment bankers Jefferies. DraftKings was next with a 31% slice of the market, with BetMGM in third with 7%.
While sports betting isn’t legal in all US states yet, Jackson is cognisant of the market’s current value with “50% of Americans” living in places they can bet.
States are hungry for further tax revenues.”
The exec told the Financial Times, however, that when the US market matures “that will get us around 80 per cent [of the population].” Jackson asserted that: “States are hungry for further tax revenues.”
Good news all round
The good news flowing out of Flutter’s investor day in New York also extends beyond the US.
In August, Flutter acquired Italian gaming operator Snaitech from Playtech for €2.3bn ($2.5bn), which the group projects will give it control of 30% of Italy’s overall online gambling sector.
This month, Flutter inked a deal to acquire an initial 56% stake of Brazil’s NSX Group, the parent of Betnacional, for approximately $350m. Jackson believes Brazil’s market potential, with its “200 million soccer-loving fans,” as low hanging fruit.