The share price of Paddy Power and Betfair owner, Flutter Entertainment, has fallen by 20% this morning, after the gaming giant announced that they expect their full year earnings to take a hit of between £90m – £110m, if the restrictions on global sporting events remain until August.
However, these pessimistic figures are based on horse racing continuing albeit behind closed doors. If horse racing joins other sports in cancelling planned events, Flutter expect that this would incrementally increase the hit on earnings by up to around £30m a month.
In a statement released this morning, Flutter Entertainment’s Chief Executive Officer, Peter Jackson, said: “The challenge currently facing our business and the industry more widely is unprecedented in modern times.”
“While our near-term profitability will be impacted by the essential measures being taken globally, the board will remain focused on protecting shareholder value and managing the business through these turbulent time.”
At the time of writing, Ladbrokes Coral owner GVC Holdings share price has fallen by over 20%, as sports betting companies brace themselves for a very uncertain future in the short term at least.