Flutter (LON:FLTRF) Entertainment plc (NYSE:FLUT), a global sports betting, gaming, and entertainment provider, disclosed its share repurchase program on Wednesday. The announcement, made via the Regulatory News Service in London, is part of the company's compliance with the United Kingdom (TADAWUL:4280) Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
The company, formerly known as Stars Group Inc. and Amaya Inc., has its shares listed on the New York Stock Exchange under the ticker symbol FLUT. The share repurchase initiative is a financial maneuver often used by companies to buy back their own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.
The details of the repurchase program, including the number of shares to be bought back and the financial terms, were not specified in the brief announcement. Share repurchase programs are typically viewed as a sign of the company's confidence in its own financial health and future prospects.
Flutter Entertainment has a diverse portfolio of leading brands across multiple markets and offers a range of products including online sports betting, poker, and casino games. The company has a presence in markets around the world and operates through various regional subsidiaries.
This press release statement serves as the source of information for this news article.
In other recent news, Flutter Entertainment reported a surge in its Q3 revenue, outperforming analyst expectations and leading the company to raise its full-year guidance. The online gambling giant posted adjusted earnings per share of $0.43, significantly exceeding the analyst consensus estimate of a $0.35 loss. Revenue soared by 27% year-over-year to $3.25 billion, surpassing expectations of $3.05 billion.
A key driver of Flutter's robust performance was the exceptional growth in its U.S. operations, where revenue surged 51% compared to the same period last year. CEO Peter Jackson attributed this success to a strong start to the NFL season, new product launches, favorable sports results, and continued strength in iGaming.
In light of these recent developments, the company has revised its full-year 2024 guidance. It now expects group revenue of $14.25-$14.55 billion, up from its previous forecast of $13.9-$14.5 billion. Adjusted EBITDA is projected to be between $2.44-$2.62 billion.
Furthermore, Flutter has announced plans to commence a share repurchase program of up to $5 billion over the next 3-4 years. The first tranche of $350 million is set to begin soon. These developments underscore Flutter's strong position in the rapidly growing online gambling market, particularly in the U.S., where it maintains a leading market share through its FanDuel brand.
InvestingPro Insights
Flutter Entertainment's share repurchase program announcement comes at a time when the company is experiencing strong financial momentum. According to InvestingPro data, Flutter has shown impressive growth with a 16.28% increase in revenue over the last twelve months, reaching $12.88 billion. This growth trend is further emphasized by a robust 20.33% quarterly revenue growth in Q2 2024.
InvestingPro Tips highlight that Flutter's net income is expected to grow this year, and analysts predict the company will be profitable in 2024. This positive outlook aligns with the company's decision to initiate a share repurchase program, which often signals management's confidence in the company's financial health and future prospects.
The company's stock has also performed exceptionally well, with a 67.34% price total return over the past year and a 29.67% return in the last three months. These strong returns, coupled with the fact that Flutter is trading near its 52-week high (98.15% of its peak), suggest that investors have been responding positively to the company's performance and strategies.
It's worth noting that while Flutter operates with a moderate level of debt, its short-term obligations exceed liquid assets. This factor may be influencing the company's financial decisions, including the share repurchase program.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Flutter Entertainment, providing a deeper understanding of the company's financial position and market performance.
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