Flutter Entertainment the company responsible for operating the largest brands in land based and online gaming, such as Paddy Power, Betfair and Sky Betting and Gaming, announced their first half year results this morning, with the figures released showing a nose dive in profits compared to the same period in 2019.
Back in May this year Flutter merged with the Stars Group after shareholders in both companies supported the deal, thus creating the largest gambling company in the world, with a then market capitalisation of $12.3m. The figures released today by Flutter includes all revenue generated by the Stars Group properties from 1st May.
Revenues are actually up year on year by 49% at £1.5bn, but profits have taken a nose dive, in part due to the Covid-19 pandemic that all industries are battling, Flutter posting pre tax profit of only £24m. Down from £81m on the previous year, or a fall of 70%
Chief Executive Officer Peter Jackson, commenting on the figures this morning, stated: “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.”
The Group’s first half financial performance exceeded expectations as we benefitted from geographic and product diversification. In the period prior to Covid-19 related disruption, our businesses performed well with strong customer growth and favourable sports results. In the period thereafter, the cancellation of sports and closure of our shops led to reduced sports revenues in the UK and Ireland.”
However, this was more than offset by an increase in the number of recreational customers playing our poker and gaming products globally, as people sought new forms of home entertainment.”
” The second half has started well, with good sports betting performance following the return of major sport events, whilst gaming performance has remained resilient. Looking ahead, we have identified promising opportunities to increase investment across the Group and, while the outlook with respect to Covid-19 remains highly uncertain, the diversification of our Group means we approach the future with confidence.”