Flutter pronounces £4bn share buyback because it cashes in on US progress

Big winner: Flutter, which owns US brand Fanduel, has enjoyed huge success in the US, as rules there relax around sports betting

Paddy Power owner Flutter has announced a near-£4billion share buyback as it cashes in on dramatic US growth.

The board has signed off a bumper share repurchase, which is expected to start after it announces its financial results in November. The £3.75billion buyback will continue for three to four years.

Flutter, which owns US brand Fanduel, has enjoyed huge success in the US, as rules there relax around sports betting. 

It has also been on a buying spree snapping up Italian gambling firm Snaitech for £1.94billion, as well as a majority stake in NSX Group, Brazil’s fourth-biggest online gaming operator.

The group now expects profits to double in the next three years. It is expected to post profits of £1.9billion this year and could rake in profits of £3.8billion by 2027.

 Revenue is projected to increase 14 per cent annually, reaching about £16billion in 2027.  The update sent shares up 6.1 per cent on Wall Street.

Flutter shifted its primary stock market listing from London to New York in May, noting the US was its ‘natural home’.