Paddy Power-owner Flutter says revenue resilient despite sport shutdown
Paddy Power Betfair’s parent company Flutter today said its revenue had not been hit as hard as expected by the shutdown in sport across the world because of coronavirus.
In its results for the first quarter the gambling group said continued horse racing in Australia and the US meant that revenue decline had not been as great as feared.
Flutter estimated a month ago that it would take at least a £90m to £110m hit to its full-year earnings if curbs on sports fixtures remained in place until the end of August.
SInce suspension of UK and Irish racing in mid-March, group revenue has declined 32 per cent year-on-year.
Sport revenue has declined 46 per cent, which is less than initially forecast.
Overall Flutter’s revenue grew 16 per cent in the first quarter to £547m, helped by online growth of 20 per cent.
Flutter said net debt at 31 March was £240m with undrawn facilities and cash of £460m.
Chief executive Peter Jackson said: “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 benefitted from favourable sports results across our sportsbooks.
“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.”
The company said it still plans to push on with its merger with Canadian gambling business 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 the 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 Q2 upon receipt of outstanding shareholder and regulatory approvals,” Jackson said.