Flutter Entertainment(US:FLUT) The Motley Foolยท2024-09-25 19:45Core Insights - Flutter Entertainment announced a significant share repurchase program and provided long-term growth guidance through 2027 [1][2] Group 1: Company Overview - Flutter is recognized as the parent company of FanDuel, a leading U.S. fantasy sports platform, and operates physical sportsbooks in various regions including the U.S., Ireland, the U.K., and Australia [2] - The company also offers online betting and casino games, referred to as "iGaming" [2] Group 2: Growth Projections - Flutter's management forecasts the total addressable market for iGaming and online daily fantasy sports to grow at an annualized rate of 8% through 2027, reaching a total of $368 billion [3] - The company aims to achieve a revenue target of $21 billion by 2027, representing a 14% average annualized growth rate from the projected $14.2 billion revenue for the current year [4] Group 3: Financial Metrics - Flutter anticipates a seven-point EBITDA margin expansion to 25% as it scales operations, with projected annualized free cash flow growth of 36%, reaching $2.5 billion by 2027 [5] - The company announced a $5 billion share repurchase program, which will commence later this year and extend over the next three years, equating to approximately 12% of its current market capitalization [6] Group 4: Market Reaction - Following the announcements, Flutter's shares increased by 6.5%, trading at about 17.2 times the 2027 free cash flow target, indicating a favorable market perception of the company's growth potential [1][7]