Flutter Entertainment, the world’s largest sports betting and iGaming company, addressed investors today with ambitious growth forecasts while announcing a $5 billion share buyback scheme. The buyback, scheduled to start after Q3 in November and which is expected to extend over the next three to four years, reflects the company’s confidence in its projected financial performance.
Flutter Will Leverage Market Synergies
The company’s leadership expects significant revenue increases, forecasting its $2.5 billion revenue expected in 2024 to more than double, reaching $5 billion by 2027. This growth will emerge from its established and emerging markets, with the USA playing a pivotal role. However, Flutter also has great hopes for promising jurisdictions like Brazil, which is on the verge of launching its regulated market.
Flutter plans to create a new business division called “Flutter Brazil,” encompassing the company’s regional brands: Betfair, Pagbet, MrJack.bet, and Betpix. Flutter Entertainment CEO Peter Jackson highlighted the company’s impressive synergies, which combine local expertise with cutting-edge solutions. Following the acquisition of local operator NSX, Flutter sees itself as a “strong podium player” in the soon-to-be-regulated Brazilian betting market.
The extensive local expertise of the NSX team, our existing Betfair business, and the power of the Flutter Edge will create a compelling opportunity to capitalize on the growth opportunity in Brazil.
Peter Jackson, Flutter Entertainment CEO
Building on this 11% market share, Flutter aims to maintain its momentum, estimating an NGR of $4.3 billion by 2030, up from $2.8 billion in 2023. Flutter expects iGaming and Sports betting to perform roughly the same, commanding a 2030 NGR of $2.0 billion and $2.3 billion, respectively.
Brazil’s Market Will Be Highly Competitive
JMP Securities analysts are optimistic about Flutter’s regional prospects. They believe that Brazil’s large population and ongoing sports betting regulation will be a catalyst for success. The NSX acquisition aligns with Flutter’s usual strategy of ushering in growth via acquisitions of well-known local brands in regulated regions. Analysts estimate Flutter has spent $11.5 billion on M&A activity outside the United States.
Flutter’s focus on the Brazilian market underlines the jurisdiction’s rising appeal. Some of the best-known names to request a gambling license in the country include the likes of Betfair, Betsson, Stake.com, Caesars Entertainment, Sportingbet, and bet365, among other prominent operators. This substantial competition places rising pressure on Flutter to secure its position during the market’s launch.
With a strategic focus on market expansion, regulatory advocacy, and enhancing shareholder value, Flutter is ready to take the Brazilian market by storm. According to projections, regulated betting in the country could generate as much as $34 billion in betting turnover by 2028, and Flutter seems set to maximize its market share.
