Flutter Entertainment PLC Announces Launch of Share Buyback Program
Rhea-AI Summary
Flutter Entertainment has announced the launch of its first share repurchase tranche of up to $350 million on the NYSE, starting November 14, 2024, and ending March 31, 2025. This represents the initial phase of a larger $5 billion share buyback program authorized in September 2024. Goldman Sachs will independently execute the buyback, with a maximum limit of 17,739,905 ordinary shares. The program aims to reduce Flutter's share capital, with all repurchased shares to be cancelled. Future buyback decisions will depend on capital requirements and market conditions.
Positive
- Authorization of substantial $5 billion share buyback program
- Immediate implementation of first $350 million buyback tranche
- Share capital reduction through cancellation of repurchased shares
Negative
- Significant cash outflow of $350 million for share repurchases
- Reduction in available capital for potential business investments or growth opportunities
Insights
The announcement of a
Share repurchases typically support stock price by reducing share count and increasing earnings per share. The independent execution through Goldman Sachs and compliance with various regulatory frameworks (Rule 10b5-1, EU Market Abuse Regulation) ensures market integrity. The flexible approach to future tranches indicates prudent capital management, allowing adjustment based on business needs and market conditions.
This buyback initiative reflects growing confidence in Flutter's market position as the world's leading online sports betting operator. The timing aligns with the expanding U.S. sports betting market and increased digital gaming adoption globally. The program's size and structure suggest management's view that the stock is undervalued relative to growth prospects.
The cancellation of repurchased shares, rather than holding them as treasury stock, indicates a permanent reduction in share count, which could drive stronger long-term shareholder returns. The phased approach with the first
Flutter Entertainment announces launch of first tranche of share repurchase program
DUBLIN, IRELAND AND TORONTO, ON / ACCESSWIRE / November 13, 2024 / Flutter Entertainment (NYSE:FLUT)(LSE:FLTR), the world's leading online sports betting and iGaming operator, announces that it has entered into non-discretionary arrangements with Goldman Sachs & Co LLC to repurchase ordinary shares on Flutter's behalf for an aggregate maximum consideration of up to
The Buyback will commence November 14, 2024, on the New York Stock Exchange, and will end no later than 31 March 2025.The purpose of the Buyback is to reduce the share capital of Flutter. This Buyback is the first tranche of the share repurchase program of up to
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. The maximum number of ordinary shares which may be acquired pursuant to the Buyback is 17,739,905.
The Buyback will be conducted within the parameters prescribed by (i) Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended and (ii) the EU Market Abuse Regulation (596/2014) and Commission Delegated Regulation (EU) 2016/1052 as such legislation forms part of law in the United Kingdom pursuant to the EU (Withdrawal) Act 2018 (as may be amended, extended and/or supplemented from time to time). The repurchased ordinary shares will be cancelled.
Any decision in relation to the amount and timing of any future buyback tranche will be based on an ongoing assessment of the capital needs of the business and general market conditions.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including with relation to our share repurchase program. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. In some cases, you can identify these forward-looking statements by the use of words such as "outlook", "believe(s)", "expect(s)", "potential", "continue(s)", "may", "will", "should", "could", "would", "seek(s)", "predict(s)", "intend(s)", "trends", "plan(s)", "estimate(s)", "anticipates", "projection", "goal", "target", "aspire", "will likely result", and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the Securities and Exchange Commission (SEC) and other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About Flutter Entertainment plc
Flutter is the world's leading online sports betting and iGaming operator, with a market leading position in the US and across the world. Our ambition is to leverage our significant scale and our challenger mindset to change our industry for the better. By Changing the Game, we believe we can deliver long-term growth while promoting a positive, sustainable future for all our stakeholders. We are well-placed to do so through the distinctive, global advantages of the Flutter Edge, which gives our brands access to group-wide benefits to stay ahead of the competition, as well as our clear vision for sustainability through our Positive Impact Plan.
Flutter operates a diverse portfolio of leading online sports betting and iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, Junglee Games and Adjarabet. We are the industry leader with
The person responsible for arranging release of this Announcement on behalf of Flutter is Edward Traynor, Company Secretary of Flutter.
For further information on the Announcement, please contact:
Investor Relations: | Media Relations: |
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SOURCE: Flutter Entertainment PLC
View the original press release on accesswire.com
FAQ
What is the total value of Flutter Entertainment's share buyback program announced in September 2024?
How many shares can Flutter Entertainment repurchase in its first buyback tranche?
When will Flutter Entertainment's first share buyback tranche begin and end?
What is the value of Flutter Entertainment's first buyback tranche?
