25th Sep 2024 14:46
(Alliance News) - Flutter Entertainment PLC on Wednesday announced a USD5 billion share buyback and said it is targetting doubling annual profit by 2027.
Flutter shares shot up 7.6% to 18,400.00 pence each in London on Wednesday afternoon.
The bookmaker, with brands including Paddy Power and Sky Bet in its stable, delivered the guidance ahead of an investor event on Wednesday.
In 2027, it is eyeing yearly revenue of USD21 billion, which would be a 78% rise from USD11.79 billion it achieved in 2023. Flutter's guidance for 2024 is for US revenue of USD6.2 billion, and USD8.0 billion for the remainder of the group, so around USD14 billion in total.
It expects to achieve adjusted earnings before interest, tax, depreciation and amortisation of "over" USD5 billion for 2027, up markedly from USD1.68 billion in 2023. For 2024, its guidance suggests an adjusted Ebitda of around USD2.5 billion, so it expects profit to double by 2027.
"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 USD370 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," Chief Executive Officer Peter Jackson said.
"This will provide us with significant optionality for capital allocation, allowing us to be an "And" business with the capacity to invest for organic growth, and engage in value creative M&A, and also return a significant amount of capital to shareholders."
Flutter approved a USD5 billion share buyback which will be "deployed over the next three to four years". It is to launch following third-quarter results in November.
By Eric Cunha, Alliance News news editor
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