Flutter CEO: We’re prepared to acquire operators in Brazil “if it will help us”
Peter Jackson reveals M&A could be used to achieve a podium position, as he claims group is already “reasonably well placed” with Betfair and PokerStars brands
Flutter Entertainment CEO Peter Jackson has reaffirmed that the business could sanction M&A to secure a top-three standing in the Brazilian market.
Speaking on an analyst call as part of the operator’s Q2 earnings presentation, Jackson talked up the group’s previous experience of overseeing large transactions and delivering gains via the “Flutter Edge”.
The regulated Brazilian sports betting and igaming market is due to go live in January 2025, after the Ministry of Finance spent the summer finetuning the framework for incoming operators.
Flutter is already live in the market with Betfair and PokerStars, although reports have suggested the business is in talks to acquire prominent local operator Betnacional to strengthen the FTSE 100 company’s hand when the regulated market launches.
Betnacional is owned by UK-based NSX Group, which also operates BetPix.io, MrJack.bet and Pagbet in the South American country.
Flutter reported an 11% rise in revenue in Brazil on a constant currency basis for Q2, yet Jackson was pressed on the New York-listed firm’s M&A plans.
His comments echoed those he made in January on the back of the group’s full-year 2023 report, in which he told analysts they “shouldn’t be surprised” should growth come inorganically.
Speaking yesterday, 13 August, Jackson said: “We’re finally getting there. We’re excited about [Brazil]. There’s a lot of betting that happens in the market today. I think we’re reasonably well placed with our Betfair brand and, of course, we also operate PokerStars there as well.
“We are ambitious. We like to have podium positions and I would really like to have gold medal positions. We’ve been able to do that organically in many markets around the world, but also, often resorted to M&A.
“When we do that, we’re able to apply the Flutter Edge and supercharge the business. We will work out what we want to do in Brazil,” he added.
Jackson went on to talk up Flutter’s M&A record, referencing success with Sisal in Italy, bingo-led tombola in the UK and Georgia’s Adjarabet.
The CEO also noted the business would be willing to exceed its debt leverage target of 2x to 2.5x. The group’s leverage ratio is currently 2.6x, down from 3.1x as of 31 December 2023.
Jackson continued: “We’ve done a lot of M&A here in the US and internationally. We recently acquired [multiplayer and jackpot slots supplier] BeyondPlay and we also bought the FanDuel business back in 2018. We will be happy to make acquisitions in this market if we think it will help us.
“It’s also important to recognise that internationally there are many markets, either regulated or soon-to-be regulated, where we are not yet present with either a podium position or gold medal position.
“We’ve had a great track record of acquiring businesses in those markets, supplying the Flutter Edge, and seeing a big step up in performance.
“If necessary, we will go beyond our leverage target to do the right type of deal if we’ve got confidence we can deleverage quickly.”
Those wishing to offer regulated sports betting and igaming in Brazil must apply for licences before the end of 2024.
Five-year licences cost BRL30m (£4.3m), with operators allowed to have up to three ‘skins’ per licence.