17th Apr 2020 09:10
(Alliance News) - Flutter Entertainment PLC on Friday reported a rise in revenue in its most recently ended quarter before betting shops were closed and sports events cancelled to combat the spread of Covid-19.
For the three months to the end of March, the FTSE 100 gambling firm saw revenue rise 16% year-on-year to GBP547 million from GBP478 million.
Sports revenue was up 13% to GBP407 million, and Gaming revenue was 25% higher at GBP140 million. In PPB Retail, revenue increased by 13%. The growth in Sports revenue was attributed to "strong" active customer growth in Australia and US and bookmaker-friendly sports results in all its regions.
Australia Sportsbet's recorded a 32% rise in revenue while the US recorded a 72% growth in revenue on strong performance across sports and gaming.
"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," said Chief Executve Peter Jackson.
Flutter said performance has deteriorated significantly since the introduction of restrictions on movement to fight the spread of Covid-19 but not as badly was first feared.
"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."
In the four weeks from March 16 to April 12, revenue for PBB Online fell by 32% year-on-year. Sports revenue declined by 57% and by 65% since the suspension of Irish racing from March 25. However, Gaming revenue increased by 15%.
In Australia, revenue shrank by 7% year-on year. US revenue for the period was 7% lower, with sports revenue falling by 46% but Gaming revenue rising four-fold.
No revenue was recorded for retail operations in the UK and Ireland due to the closure of venues.
"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 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 the second quarter upon receipt of outstanding shareholder and regulatory approvals," Jackson added.
In October, Flutter announced an all-share merger in which Stars shareholders will receive 0.2253 of a Flutter share per Stars share owned. Flutter's shareholders will own 55% of the combined business, and Stars Group the rest. The combined business will be worth over GBP10 billion, and will be led by Jackson.
Separately, the company noted the introduction of government financial schemes aimed at supporting companies but said that it has decided to fund payment of all its employee salaries until such a time it is no longer able to.
As at the end of March, Flutter had net debt of GBP240 million, with undrawn facilities and cash of GBP460 million.
The stock was trading 9.7% higher at 8,550.00 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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