Sports betting giant warns of impact of Covid-19
Global sports betting, gaming and entertainment provider, Flutter Entertainment, which is seeking to merge with the owners of Sky Betting and Gaming, has issued a statement on the impact of Covid-19.
With the decision internationally to postpone or cancel high attendance sports events, the group has warned the impact to its earnings could be as much as a £110m reduction to EBITDA. This estimate reflects current restrictions being in place until August and the full suspension of Australian sports and Euro 2020, but its UK and Irish shops remaining open.
The firm however confirmed that if horse racing in the UK, Ireland and Australia was cancelled and its shops were forced to close, then the financial impact would be approximately an additional £30m per month reduction in EBITDA.
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. 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.”
The announcement of a £10bn merger between Flutter Entertainment and the owners of the Leeds-based Sky Betting and Gaming, The Stars Group was announced in October but is currently under investigation by the Competition and Markets Authority (CMA).
