Flutter to Buy Back Shares Worth up to $245 Million in Q4
Flutter Entertainment Continues Share Buyback Program
Flutter Entertainment, the parent company of Betfair, has announced that it is continuing its share buyback program, with the fourth tranche worth up to $245 million set to begin on October 1, 2025, and conclude by December 31, 2025. This forms part of a larger multi-year plan, with the company aiming to return about $1 billion to shareholders in 2025.
The buybacks are being managed independently by Davy Securities UC, under pre-set guidelines to ensure compliance with regulatory requirements. So far in 2025, Flutter has repurchased shares totaling up to $225 million, with these shares being canceled to reduce the company's share capital. As a result, the issued share count currently stands at 175,789,936 ordinary shares.
The company delivered its second-quarter results on Thursday, 2025, and despite a slump in its shares following the earnings report, Flutter is on pace to reach its stated goal of repurchasing at least $1 billion worth of its own shares in 2025. The company spent $230 million to retire 891,000 shares in the first three months of 2025 alone.
Flutter's strong financial position allows it to make good on its share buyback pledges without straining its balance sheet. As of June 30, the company had $1.7 billion in cash on hand, up $154 million on a sequential basis. The company's total debt stands at $9.95 billion, reflecting the financing for the Snai and NSX acquisitions.
Jefferies analyst James Wheatcroft stated that the underlying equity story remains very much on track for Flutter. In addition, Flutter has upped its 2025 guidance, including the effects of the December launch of online sports betting in Missouri and recent tax increases in Illinois, Louisiana, and New Jersey.
The note from James Wheatcroft to clients mentioned product superiority driving leading market share, global footprint adding diversity, ongoing operating leverage, continued buybacks and M&A, all set against a valuation that does not price in the >30% compound EBITDA growth. North American growth, facilitated by FanDuel, the upcoming start of the football season, and Flutter's smart M&A track record are among the reasons analysts love the stock.
Flutter runs an asset-lite, online-only model in North America, which bodes well for the company's future growth prospects. The company expects to buy back up to $245 million of its stock in the final three months of 2025, as it continues to return value to its shareholders.
- Flutter Entertainment, due to its strong financial position, can make good on its share buyback pledges without straining its balance sheet, as shown by the repurchase of shares totaling up to $230 million in the first three months of 2025 alone.
- In addition to its share buyback program, Flutter Entertainment is also aiming to expand its business, with the upcoming start of the football season and its smart M&A track record contributing to analysts' positive views on the stock.
- While some investors may choose to invest in various sectors such as business or personal-finance, Flutter Entertainment offers an opportunity for those interested in sports betting, given its leading market share and product superiority, as noted by Jefferies analyst James Wheatcroft.
