Flutter Entertainment's stock up 8% after FanDuel parent outlines growth plans and unveils $5 billion share buyback

By Ciara Linnane and Steve Gelsi

Company boosts its outlook for the size of the total addressable market in North America

Flutter Entertainment Plc's stock jumped about 7% on Wednesday after the parent of sports betting platform FanDuel said it expects revenue growth of about 14% a year over the next three years and boosted its outlook for its total addressable market.

The company also announced a $5 billion stock-buyback plan.

Flutter Entertainment's stock (FLUT) moved up by $16.17 a share to trade at $244.34 a share.

Earlier in the session, the stock touched an all-time high of $246.22 a share, according to Dow Jones Market Data,

Meanwhile, FanDuel competitor DraftKings Inc. (DKNG) advanced 3.7%.

Benchmark analyst Mike Hickey reiterated a buy rating on Flutter Entertainment and said the company's higher expectations for total addressable market signals "critical growth opportunity for data and content providers" as the outlook for global sports-betting heats up.

In North America, the mature total addressable market, or TAM is expected to be about $70 billion by 2027. The U.S. TAM will account for about $63 billion, or 1.5 times the company's previous U.S. estimate.

Flutter Entertainment (UK:FLTR), which went public on the New York Stock Exchange in January, said the midpoint of its U.S. and rest of the world total revenue estimate amounts to about $21 billion in revenue in 2027, which works out to 14% annual growth.

The company expects adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, of more than $5 billion in 2027 and for free cash flow of about $2.5 billion.

Flutter Entertainment also said it's projecting that its total addressable market, or TAM, will grow about 8.3% a year to hit $368 billion of gross gaming revenue by 2030.

The company offered the guidance in a statement released ahead of an investor day later Wednesday.

The stock has gained 27% in the year to date, while the S&P 500 has gained 20%.

-Ciara Linnane -Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-25-24 1141ET

Copyright (c) 2024 Dow Jones & Company, Inc.