Flutter Entertainment’s profit plunges 70 per cent amid Covid-19 crisis
Flutter Entertainment, the owner of gambling firms Betfair and Paddy Power, suffered a 70 per cent dive in profit in the first half of the year as major sports events were cancelled due to the coronavirus pandemic.
The figures
Flutter’s profit before tax plummeted 70 per cent in the first six months of the year, falling from £81m in 2019 to £24m.
Revenue jumped 49 per cent to £1.52bn, up from £1.02bn last year.
Earnings per share plunged 81 per cent to 18.1p, down from 96.2p.
The betting shop chain said adjusted earnings before interest, tax, amortization and depreciation was £342m, a jump of 59 per cent.
Net debt soared to £2.9bn, up from £356m.
Why it’s interesting
The cancellation of major sporting events “materially impacted” Flutter’s sports and retail businesses.
The firm’s European arm was hardest hit by the cancellations as horse racing in the UK and Ireland was also suspended for more than two months, alongside mainstream sports.
However Flutter said its poker and casino businesses experienced a major uplift in player numbers during the pandemic, as consumers sought entertainment while staying at home during lockdown.
The firm said the second half of the year had seen encouraging trading due to condensed football fixtures, favourable sports results and the ongoing resilience of gaming.
But it added that the outlook “remains highly uncertain” due to potential further Covid-19 disruption and possible regulatory change across markets.
What Flutter said
Chief executive Peter Jackson said: “The first half of 2020 has been defined by the outbreak of the global Covid-19 pandemic. For Flutter, my primary concern has been to keep our colleagues and customers safe.
“I am proud of the support we have been able to provide to our employees during this challenging time and the additional safer gambling measures we have put in place to enhance player protection.
“The pandemic has been a highly unusual backdrop for completion of our combination with The Stars Group and I would like to take this opportunity to thank all of my colleagues across the enlarged Group for their hard work, commitment and resilience as we have combined to form one team.”
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