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Revenue jumps at Paddy Power owner on the back of acquisitions, online gaming

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Revenue increased by 106pc year on year at Flutter Entertainment

Revenue increased by 106pc year on year at Flutter Entertainment

Revenue increased by 106pc year on year at Flutter Entertainment

Paddy Power owner Flutter Entertainment has reported a jump in group revenue and earnings in respect of last year following its merger with The Stars Group (TSG).

Revenue increased by 106pc year on year to £4.4bn (€5bn) on a reported basis.

On a pro forma basis revenue is up 27pc year on year to £5.3bn (€6bn), according to annual results from the group.

The group’s pro forma online revenue of £5bn (€5.8bn) was 34pc higher than 2019, and constituted 96pc of its total revenue.

Adjusted group earnings before interest, taxation, depreciation and amortisation (ebitda) increased by 109pc to £889m (€1bn) last year on a reported basis.

On a pro forma basis ebidta is up 13pc to £1.2bn (€1.4bn). The company said the pro forma revenue and ebitda increased was primarily due to customer growth and positive sports results.

However, the group reported profit of just £1m (€1.2m) after deduction of £432m (€499.7m) in non-cash acquisition accounting adjustments.

Peter Jackson, chief executive of Flutter Entertainment, said: "2020 was an historic year for the group as we completed our merger with TSG, commenced the integration of our two businesses and increased our ownership of FanDuel in the US, whilst at the same time navigating the challenges presented by the Covid-19 pandemic.”

“We delivered a very strong financial performance in 2020, benefiting from our scale and diversification,” he added.

Looking forward, the company said it has experienced “strong momentum” in 2021 with growth in player volumes across all divisions.

It has benefitted from “favourable” sports results relative to expectations, particularly in UK and Ireland.

Group revenue is up 36pc year on year in the first seven weeks of 2021.

However, Covid restrictions are impacting its retail business in the UK and Ireland, with estimated monthly earnings loss of £9m for each month that both UK and Irish retail estates remain shut, the group said.

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