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Global sport cancellations threaten Flutter

The parent of the Betfair and Paddy Power brands derives a huge proportion of its revenues from sports betting
March 16, 2020

Flutter Entertainment (FLTR) warned that the abandonment of elite sport around the world could hit the gambling group’s cash profits by £90m-£110m. Last year, the parent of the Paddy Power and Betfair brands received 78 per cent of its revenues from bets placed on global sporting events.

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Flutter’s has modelled its estimates on restrictions remaining in place until the end of August, including the expected cancellation of the Euro 2020 football championship and suspension of Australian sports. It assumes that its UK and Irish shops will remain open and that UK, Irish and Australian horse racing fixtures will continue to take place. Should these shops be closed and the fixtures unfulfilled, however, Flutter anticipates an incremental hit of around £30m to cash profits per month.

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