Flutter Entertainment, the parent company of Paddy Power, intends to disburse approximately €4.5 billion to its shareholders over a span of three to four years while striving for nearly €20 billion in revenue. Being listed on the New York stock exchange, the gambling behemoth reassured stakeholders of its strong position to capitalise from growth not only in its dominant market, the US, but also globally on Wednesday.
Based on its board’s approval, Flutter aims to repurchase its shares worth $5 billion (€4.47 billion) from shareholders within the coming three to four years. Initiation of this share buy-back scheme, a common practice to repay cash to investors, hinges on the announcement of the company’s financial statements for Q3 in November, according to an official release.
Flutter highlighted that the schedule and quantity of shares to be reacquired are dependent on legal obligations, current price and market circumstances. CEO Peter Jackson expressed that the buyback scheme exhibits their optimism in Flutter’s prospective growth. Jackson iterated the company’s solid position to exploit global markets potentially valued at $370 billion.
Jackson envisages that the group, originating from Ireland, will possess enough funds for growth investments, acquisition opportunities, and even capital returns to stakeholders. The company anticipates reaching a total revenue of $21 billion (€18.78 billion) by 2027 and generating cash in excess of $5 billion.
North America is projected to reach a potential worth of $70 billion by 2027, with the US making up $63 billion and Canada, the remainder. Flutter forecasts the remaining global market, inclusive of Europe and the Republic, to hit $298 billion by 2030.
Flutter’s portfolio includes other prominent names in the betting industry, like Betfair and Sky Bet, which are functional in Britain and Ireland, and Sportsbet, operating in Australia. Additionally, it also owns FanDuel in the US, which holds a significant market share in states that permitted sports betting following a federal supreme court verdict in 2018.
Flutter recently announced its acquisition of Snaitech, an Italian firm, for approximately €2.3 billion from its London-based proprietor, Playtech. The acquisition grants Flutter a 30% share of the largest gambling market in Europe.
Snaitech, representing the leading online betting company in Italy, provides sports betting services as well as online casino-style and slot machine gaming. According to its website, the company accommodates over two million online bets daily.
In addition, the firm owns around 1,600 physical betting stores across Italy, two racetracks, including Milan’s San Siro, plus Epiqa, a horse racing broadcasting firm, and Happybet, operating in Austria and Germany.
As online betting trends expectedly increase among Italian consumers in the years ahead, Snaitech is predicted to benefit from this shift.
The revelation of the agreement with Snaitech followed Flutter’s communication that it had purchased 56% of Brazil’s NSX Group for €316 million. The NSX Group manages Betnacional, the principal betting service in South America’s largest country.
Flutter declared on Wednesday that both deals are awaiting the approval of competition authorities, a procedure estimated to be finalised by the second quarter of the upcoming year. The potential advantages of both transactions were discussed in the projections given to shareholders at an investor’s day.
It was further noted by industry analysts that both deals will allow Flutter to secure leading positions in most of the regulated global gambling markets. Flutter emphasized to its shareholders that notwithstanding their global leadership, their separate businesses are supported whilst maintaining their local orientation.