Firm in line to merge with Sky Bet estimates £110m Coronavirus loss

Flutter Entertainment has said the cancellation and postponement of multiple sports fixtures across the world from the Covid-19 could cost between £90m and £100m.

The Paddy Power owner, currently in the midst of merging with Leeds-based Sky Betting & Gaming, said cancellations and postponements would 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.

It estimated 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.

Hide Ad
Hide Ad

This estimate assumes that our UK and Irish shops remain open and that scheduled UK, Irish and Australian horse racing fixtures continue to run, albeit behind closed doors.

Racing at riskRacing at risk
Racing at risk | pa

Should horse racing be cancelled in the three regions and its UK/Irish shops be closed, it estimates that this would incrementally reduce Group EBITDA by approximately £30m per month.

Peter Jackson, Chief Executive, commented: "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.

Hide Ad
Hide Ad

"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."