Flutter sees revenues rise 16% in 1Q20
For the three months to the end of March, the firm saw revenues rise 16 per cent year-on-year to GBP£547million from £478million.
UK.- Flutter Entertainment PLC, who operates Paddy Power and Betfair, reported an increase in revenue before betting shops were closed and sports events cancelled to combat the spread of Covid-19.
For the three months to the end of March, the firm saw revenues rise 16 per cent year-on-year to GBP£547million from £478million.
The growth in sports revenue was attributed to “strong” active customer growth in Australia and US and bookmaker-friendly sports results in all of its regions.
“The group performed very well in the period prior to the disruption to sporting events in mid-March. We delivered strong customer growth across each of our brands and benefited from favourable sports results across our sportsbooks,” Chief Executive, Peter Jackson, said.
However, Jackson said that numbers were down since sports events around the world had been cancelled due to Coronavirus but that the impact was not as bad as anticipated.
“Following the widespread cancellation of sporting events, group revenues have been more resilient than we initially expected, helped by the continuation of horse racing in Australia and the US. Gaming continues to perform well across the group.”
In the four weeks from March 16 to April 12, revenue for PBB Online fell by 32 per cent year-on-year.
Sports revenue decreased by 57 per cent and by 65 per cent since the suspension of Irish racing from March 25, while gaming revenue increased by 15 per cent.
In Australia, revenue contracted by 7 per cent year-on year. US revenue for the period was 7 per cent lower, with sports revenue falling by 46 per cent.
No revenue was recorded for retail operations in the UK and Ireland due to the closure of venues.
Jackson said the outbreak would not impact its planned mega merger with the Stars Group.
“While the current disruption is truly exceptional, it underlines the importance of product and geographic diversification. As such, the strategic logic of our combination with Stars Group remains compelling.
“Following approval of the deal yesterday by the Irish Competition and Consumer Protection Commission, we look forward to completing the transaction in the second quarter upon receipt of outstanding shareholder and regulatory approvals,”he added.
