Flutter Entertainment showcased its viability as a global gaming conglomerate during the company’s annual Investor Day presentation.
The Ireland-based company’s senior leadership hosted an investor day in New York on Wednesday. The presentation highlighted Flutter’s growth as a gaming and entertainment giant and how the company is returning value to its shareholders.
Flutter attributed its ability to tap into a wide range of global markets as the reason for its growth and stability in a dynamic industry despite regulatory and economic challenges.
The company projects that its full-year group revenue in 2024 will surpass $14 billion. In 2027, the company estimates its revenue will reach $21 billion, a 14% compound annual growth rate. That same year, Flutter expects to have approximately $2.5 billion in free cash flow.
The company is also looking to spur long-term growth with a share repurchase program of up to $5 billion. The repurchasing is expected to take in the next three to four years.
“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,” said CEO Peter Jackson.
Flutter gets boost from FanDuel
Flutter also provided investors with an inside look into its U.S. business, FanDuel.
FanDuel is benefiting from growth in its iGaming business. In 2022, the operator’s iGaming brand was ranked No. 3 in America for gross gaming revenue. Two years later, FanDuel Casino is No. 1. combined, FanDuel’s iGaming and sports betting operations hold a 38% market share for gross revenue.
FanDuel Sportsbook is also continuing to drive profits for Flutter. The company provided insights into how players use its sports betting platform and where it generates revenue. According to FanDuel CEO Amy Howe, parlays make up 70% of all NBA and NFL betting.
“Players who engage with parlays retain at greater rates than those who don’t, due to the entertainment value parlays provide,” said FanDuel’s President of Sports Mike Raffensperger during the presentation. “There is a higher structural margin element to the parlay products, so FanDuel extracts more commercial value from those players.”
FanDuel is planning to enhance its parlay products with new features that include the ability to adjust betting lines for player prop markets and curated charting for wagers. The operator is capitalizing on the popularity of parlays and the potential payouts for players.
Over the last four years, Flutter has seen a 260% increase in the average odds wagered across its gambling brands. It cites the slew of betting options on FanDuel for the uptick.
FanDuel is projected to generate roughly $9.7 billion in revenue by 2027. The operator, which is licensed in 26 states, expects an adjusted EBITDA of $2.4 billion that year.
Looking ahead for FanDuel and Flutter
FanDuel is also looking ahead to what America’s gaming market may look like in the future.
The company believes California, Texas and Florida present a unique opportunity to acquire new customers and fresh growth. By 2030, Flutter expects 80% of America’s population to have access to regulated sports betting. Flutter is looking to turn that projection into a reality by lobbying and engaging with lawmakers and residents in those markets. In 2022, FanDuel made unsuccessful efforts to bring sports betting to California.
It expects to have a better outcome for betting in the Golden State in the coming years.
Flutter will continue to make its mark across the gaming industry as one of TIME’s 100 Most Influential Companies of 2024 in which the publication considered Flutter a “Pioneer.”
The gaming giant was the only gambling-centric company to make TIME’s list in 2024.
