Flutter Entertainment provides FY27 U.S. market outlook – TipRanks.com

North American mature total addressable market is now expected to be approximately $70B, of which the U.S. is forecast to be approximately $63B, 1.5 times our previous U.S. market estimate and Canada is estimated to be $7B. The company expects sportsbook structural gross gaming revenue, or GGR, margin to be 16% in the long-term, reaching 15% in 2027, and delivering a long-term net gaming revenue margin of 12% for FanDuel. The company expects 2027 existing state revenue compound annual growth rate of 15%-17%, or approximately $9.7B, at the midpoint. Existing state projected adjusted EBITDA of approximately $2.4B at the midpoint with adjusted EBITDA margin expansion of 13 percentage points to approximately 25% by 2027. This would be within the company’s long-term 25%-30% target range, which the company reiterated. Significant further opportunity from states yet to regulate; reiterating 80% sportsbook and 25% iGaming population coverage expectations. Peter Jackson, CEO, commented: “I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalize on a global regulated addressable market of nearly $370bn. With our unmatched scale, diversification, and our global differentiator, The Flutter Edge, we have clear sustainable global advantages that will continue to drive sustainable growth and power our financial model with operating leverage building over time. This will provide us with significant optionality for capital allocation, allowing us to be an ‘And’ business with the capacity to invest for organic growth, and engage in value creative M&A, and also return a significant amount of capital to shareholders. Our intention to deliver up to $5bn of share repurchases over the next three to four years reflects our confidence in Flutter’s future.”