Flutter Entertainment PLC on Wednesday revealed it was commencing the first tranche of its $5 billion share repurchase programme announced in September.
The New York-based owner of Sky Bet and PaddyPower said the first tranche will run from Thursday to March 31 and will see up to $350 million worth of shares repurchased on the New York Stock Exchange.
Flutter said the purpose of the programme is to reduce its share capital.
Flutter shares were up 5.8% at 20,390.00 pence on Wednesday afternoon in London, giving the company a £36.46 billion market capitalisation. On the New York Stock Exchange, its shares rose 4.5% in pre-market trading to $259.24 each.
Earlier on Wednesday, Flutter upgraded its full-year guidance amid strong revenue growth in the third quarter.
Its revenue grew 27% to $3.25 billion in the three months that ended September 30 from $2.56 billion a year prior, with growth in the UK and Ireland driven by a broader product range across sports and iGaming.
Outside of the US, Flutter reported a good performance across all of its divisions throughout the period.
Adjusted earnings before interest, tax, depreciation and amortisation rose 74% to $450 million from $258 million the previous year.
The company said its performance in the quarter well exceeded market expectations, and it upgraded its guidance for the full year in response.
Flutter nudged up revenue expectations overall by 1%, adding that excluding the US, it now expects to book between $8.1 billion and $8.3 billion in 2024, instead of between $7.85 billion and $8.15 billion.
Adjusted Ebitda excluding the US is now expected to be in the range of $1.77 billion and $1.87 billion, instead of between $1.69 billion and $1.85 billion.
The firm noted that despite strong momentum for the US in the third-quarter, the progress has been more than offset by unfavourable results in its fourth-quarter to-date.
Flutter narrowed its US revenue guidance for the full-year to the range of $6.05 billion and $6.25 billion from $6.05 billion and $6.35 billion previously.
Adjusted Ebitda guidance also narrowed for the US to between $670 million and $750 million from between $680 million and $800 million.
For the entire group, Flutter reported adjusted Ebitda of $1.87 billion on revenue of $11.79 billion in 2023.
Flutter listed on the New York Stock Exchange and delisted from Euronext Dublin back in January.
Originally, Flutter said it would keep its primary listing in London but, after feedback from US investors, later decided to move this to New York. It also moved its operational headquarters to New York from Dublin.
Flutter Chief Executive Peter Jackson said: ‘Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and adjusted Ebitda guidance for 2024.
Copyright 2024 Alliance News Ltd. All Rights Reserved
