Flutter Entertainment has seen group-wide revenue plunge 32 per cent year-on-year since the suspension of UK and Irish racing, with overall growth of 16 per cent felt across 2020’s first quarter.
Publishing a trading update ending March 31, 2020, group-wide resilience has been praised with impacts from the wave of global cancellations not biting as hard as expected during this initial period.
Revenue reached £547m (2019: £478m) with gaming rising 25 per cent from £113m to £140m as the impact of sports disruption saw the segment jump 13 per cent to £407m (2019: £366m). For the pre-March 15 period total revenue grew 29 per cent, with sports and gaming rising 30 per cent and 27 per cent respectively.
Emphasising a heightened responsibility to responsible gaming during the current climate, the operator group detailed a number of trends experienced during the March 16 – April 12 timeframe.
In its Paddy Paddy Betfair online segment overall revenue has declined by 32 per cent year on year, with sports dropping 57 per cent, 65 per cent since the suspension of Irish racing from March 25. Gaming revenue has increased 15 per cent during the period.
In Australia revenue has reduced 7 per cent yoy with a limited impact from sports cancellations to date, reflecting continued racing behind closed doors.
In the US, where the group asserts performance is continuing to exceed expectations, revenue is eight per cent lower yoy made up of a decline in sports revenue of 46 per cent and gaming revenue growth in the region of 200 per cent with an expanded footprint, concerning the latter, praised.
Peter Jackson, chief executive of Flutter Entertainment, explained: “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.
“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. During this unprecedented time, we are keenly aware of our heightened responsibility to ensure that we do all we can to promote responsible gambling.
“We have stepped up our own practices and are collaborating with our peers within the Betting and Gaming Council to continue to raise standards across the sector. We are also working hard to provide all the support we can to our employees and I would like to thank them for their ongoing commitment and support for each other during this difficult period.
“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.”
