Flutter (FLUT) stock hits all-time high after the company announced a $5 billion share buyback program and predicted the U.S. online gambling market would grow nearly 60% more than predicted two years ago. It soared by 8%.
The company, which owns online gaming giant FanDuel, predicts that once the North American gambling market reaches maturity around 2030, the total addressable market will be $70 billion, of which $63 billion will come from the United States. . This is a notable increase from the $40 billion mature market Flutter predicted for the US at its 2022 Investor Day. Globally, Flutter predicts that the total addressable market will reach $368 billion by 2030.
“We’re the No. 1 company here in the U.S. in FanDuel, in sports, and in iGaming, which gives us a lot of confidence in predicting the size of the market,” Flutter CEO Peter Jackson told Yahoo. . finance.
Flutter announced Wednesday that it expects its revenue to grow 14% annually to reach about $21 billion in 2027. This is almost double the $11.79 billion that Flutter recorded in 2023. Jackson said nearly 60% of its sales in the most recent quarter came from outside the United States, and the company’s global footprint remains a key part of its growth story.
Flutter recently announced the acquisition of Playtech Plc’s Italian gambling business for $2.6 billion.
“The Italian acquisition was a deal we made to ensure we were the No. 1 player in Italy,” Jackson said. “We know that being number one in the market means we have a disproportionate share of the economics. We capture a larger profit pool than other players in the market.”
In the US, Flutter’s FanDuel currently operates in 26 states and is projected to generate EBITDA of $2.4 billion by 2027 from $65 million in 2023 from existing operations.
“For the existing states, the 50% of Americans who live in places where you can bet on sports today, this is a very valuable business,” Jackson said.
Although major large US states such as California and Texas have not yet legalized online mobile gambling, Jackson said more states will eventually join the market, with Flutter accounting for around 80% of the total US gambling market. I believe that you will be able to access.
A FanDuel sportsbook ad ran before the game between the New York Yankees and the Minnesota Twins at Yankee Stadium in the Bronx, New York on June 5, 2024. (Luke Hales/Getty Images) (Luke Hales, via Getty Images)
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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