UK
Flutter Entertainment (NYSE: FLUT) announced on Wednesday that it intends to buy back up to $300 million in shares during the second quarter as part of the $5 billion repurchase program revealed last September.
The news follows a day after the parent company of FanDuel published its fourth-quarter results — a report highlighting robust revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025, largely driven by strong performance in its US operations.
"The Buyback will commence on April 1, 2025 on the New York Stock Exchange, and will end no later than June 30, 2025. The purpose of the Buyback is to reduce the share capital of Flutter,” according to a statement. “This Buyback is the second tranche of the multi-year share repurchase program of up to $5 billion announced on September 25, 2024.”
Flutter, the world's leading gaming firm by market value, informed investors that it plans to buy back as much as $1 billion of its stock this year.
Flutter Practicing What It Preaches on Buybacks
Last year, numerous online gaming firms revealed plans to repurchase shares — often the first of their kind in their individual histories. Although some of those operators have not yet implemented their buyback plans, Flutter is successfully working to lower its number of shares outstanding.
Following the buyback of a small number of shares in late 2024, the parent company of Paddy Power announced its intention to repurchase as much as $350 million in equity throughout the ongoing quarter. No explanation was provided for why the company plans to purchase a smaller dollar amount of its shares during the April to June timeframe compared to what is expected in the first quarter.
“Goldman Sachs & Co. LLC will conduct the Buyback on Flutter’s behalf and will make trading decisions under the Buyback independently of Flutter in accordance with certain pre-set parameters,” said the gaming company in the press release. “The maximum number of ordinary shares which may be acquired pursuant to the Buyback is an aggregate of 17,739,905 ordinary shares less the total amount of ordinary shares acquired as part of the first tranche of our share buyback programme announced on November 13, 2024.”
Flutter, based in Dublin, reported a significant increase in its operating cash flow last year, coupled with a decrease in its leverage ratio, suggesting it can reduce its outstanding shares without putting pressure on its balance sheet.
Discussing Flutter’s Financial Statement…
Flutter ended 2024 with $1.53 billion in cash and cash equivalents along with $48 million in restricted cash—figures that support the claim that the operator can provide shareholder benefits without compromising its overall financial flexibility.
In October of last year, Moody’s Investors Service announced that the buyback program poses no risk to Flutter’s “Ba1” credit rating.
Flutter's buyback initiative is among the most substantial disclosed in the gaming sector in recent times and offers significant flexibility. Besides the multiyear timeframe, Flutter is not required to repurchase $5 billion in its shares. This applies to any corporate buyback initiative.
