Flutter Entertainment has released an update about the cancellation and/or postponement of multiple sports fixtures globally.
Governments of various countries and sports authorities have decided to postpone/cancel high attendance sports events in response to the coronavirus pandemic. This will have a material impact on the revenue and earnings of the Group which, in 2019, generated approximately 78% of its revenues through bets placed on global sporting events.
To quantify the impact on the Group at this point, the company estimates that in a scenario where restrictions remain in place until the end of August (including full suspension of Australian sports and the cancellation of Euro 2020), EBITDA for the Group would be reduced by approximately £90–110m. This estimate assumes that the Group’s UK and Irish shops remain open and that scheduled UK, Irish and Australian horse racing fixtures continue to run, albeit behind closed doors. If horse racing be cancelled in the three regions and the UK/Irish shops are closed, then the Group estimates a decrease in EBITDA by approximately £30m per month.
“The challenge currently facing our business and the industry more widely is unprecedented in modern times. Our focus, first and foremost, is on protecting the welfare of our employees and our customers and we will leave nothing to chance in this regard. While our near-term profitability will be impacted by the essential measures being taken globally, the Board will remain focused on protecting shareholder value and managing the business through these turbulent times,” Peter Jackson, Chief Executive, said.