Flutter’s Profits hit by Regulatory Changes and US Investment Costs

Flutter Entertainment the company behind the Paddy Power and Betfair brands have reported a substantial drop in their pre-tax profits for 2019 compared to the previous year, citing tax and regulatory changes as well as continued investment in the US.

The company have posted pre-tax profits of £136m in 2019, this compares to £219m reported in 2018, a drop of £83m, which equates to a sizeable 38% fall in profits, year on year. However, this figure is against an overall growth in group revenue, which saw Flutter Entertainment report revenues of in excess of £2bn, which is thanks in part due to strong growth in European markets as well as establishing a foothold within the US.

The board of Flutter Entertainment have recommended a final dividend payment of 133 pence per share. Speaking about their results, Flutter Entertainment’s Chief Executive Officer, Peter Jackson, stated: 2019 was a very significant year for Flutter, with further successful expansion in the United States, enhancement of responsible gambling initiatives within our business and the announcement in October of our proposed merger with The Stars Group.”

“I am immensely proud of the Group’s performance given the complex regulatory environment. The entrepreneurial culture of our business and the quality of our people are continuing to drive our global expansion while providing our teams with the opportunities they seek to develop their careers and gain new experiences.”

“Responsible gambling is a critical component of our strategy. This is why we continue to raise our standards as a socially progressive operator and to help to lead the industry in a race to the top when it comes to responsible gambling practices.”

“While these changes are reducing our growth in the short-run, we know that they are the right thing to do for our customers and for the sustainability of our business and the industry in the long-run.”

“In the US, FanDuel finished 2019 as the largest online sportsbook and casino, less than 18 months after the launch of our sports betting operations. Our online market share during 2019 of 44% in the states where we have gone live is testament to the quality of our products, brand and team.”

“We remain as confident as ever in the size of the prize in the US and in our strategic approach which positions us well for the future. The new financial year is off to a strong start with good momentum across all our brands.”

“We are very excited about the Group’s prospects and in particular our proposed combination with The Stars Group, which will help us to build a more diversified global business.”

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Simon Wright

Simon Wright

Simon Wright has been both a player and an observer of the online casino industry for over 15 years. His knowledge of the online casino industry – to include sports is massive. Not many folks have the experience or his knowledge about online gambling. His adoration of football is also noted. He has painted his house blue (Chelsea) and annoys his neighbors with local football songs on game days.

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