Flutter Shares Continue Setting Highs After Stellar Q3 Results

Flutter Entertainment shares (LON: FLTR) have continued to attract the bulls, as the premier gaming and betting company, witnessed its stock price hit another all-time high after outperforming in the third quarter. Flutter shares have added 4.77% on the day, hitting a new high at 20,280 as financial performance beat market expectations.

Taking a look at the 12 month chart below, and it is clear to see the bullish trend has been in tact for a while, with gains of 62.63% a significant outperformance on the broader UK market, where the FTSE 100 has added a little under 8% on the same time frame. T

The NYSE listing of Flutter's stock (NYSE: FLUT) is indicating an upswing of 3.83% through the pre-market session, set to make a new high of $257.68.

Moving back to the third quarter, and Flutter reported a substantial rise in revenue, which climbed by 27% to reach $3.25 billion. This growth was propelled in part by a significant 16% increase in average monthly players, with the tally nearly hitting the 13 million mark. Such performance underscores Flutter's expanding appeal and operational excellence within the competitive digital entertainment landscape.

Even more impressive was the company's adjusted EBITDA for the quarter, which surged by a striking 74% year-on-year to $450 million. This remarkable upswing in profitability can be attributed to efficient cost management and the successful implementation of strategic initiatives under the company's Flutter Edge strategy.

Encouraged by the strong quarterly outcomes, Flutter Entertainment revised its full-year guidance upwards. Revenue forecasts saw a modest increase of 1%, indicative of a projected uptick of 22%, while the revised adjusted EBITDA growth stands at an impressive 35% at the midpoint of expectations. These adjustments reflect the company's confidence in its enduring growth trajectory and operational strengths.

Flutter's CEO Peter Jackson has spotlighted the exceptional quarter, celebrating the company's substantial revenue growth. Jackson lauded the concerted effort across all divisions, which he said had effectively capitalized on the strategic advantages conferred by the Flutter Edge strategy.

What's particularly notable is the company's announcement of a sizeable share buyback program, signalling strong future prospects and a shareholder-friendly capital allocation policy. The program outlines plans for repurchasing up to $5 billion worth of shares over the next three to four years. This initiative will commence in November, with the ambition to acquire up to $350 million worth of shares by the end of Q1 2025.

The confluence of high growth, increased guidance, and a major share buyback program paint a picture of a company in robust financial health, with a clear roadmap for sustained success.