Flutter Entertainment Release Preliminary 2020 Results

Flutter Entertainment has released its preliminary results for 2020, a year in which it increased its ownership of FanDuel Group, a US sportsbook, and completed its transformational merger with The Stars Group.

According to the company, corporate revenues increased to $6.1 billion (FY2019: $2.9 billion) as a result of the successful integration of TSG assets beginning in May 2020. Despite a ‘irregular sporting calendar,’ which the company acknowledged had affected staking levels through its Paddy Power Betfair, Sky Bet, and Sportsbet brands during H1, group sports betting sales rose by 64% to $3.8 billion (FY2019: $2.2 billion).

Flutter’s group-wide adjusted EBITDA of $1.2 billion was up 109 percent from FY 2019 results of $589.9 million, thanks to the growth and integration of its new business units. Flutter reported $1.4 million in corporate profits in year one of its TSG expansion, after accounting for $599.7 million in non-cash acquisition items.

An historic year

Investors were updated by CEO Peter Jackson, who 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.”

He expanded on Flutter’s goals and the Stars Group merger, saying: “The strategy within our International division to attain global scale and diversification was greatly accelerated by the merger, adding new podium positions and many more top ten markets.

Sharpened our investment

“Given this significant expansion, we have now sharpened our investment focus within PokerStars, identified key target markets and tailored plans for our brands and products. Having attained a leadership position in the US, our strategy now is to continue to grow it through further investment and leveraging the strong set of assets that we have.

“Ultimately, we believe that the online gaming sector is similar to other large digital markets, whereby the largest player achieves superior economics through operational leverage, creating a virtuous circle for future investment in product, marketing and generosity which in turn drives further growth.”

Recreational player base

Jackson praised the increase of Flutter’s recreational player base in all main regions as well. According to him, the organisation had over 7.6 million monthly online players in Q4.

“Nowhere has our growth been more evident than in the US where we have consolidated our #1 position in this crucial market,” he added, “with customer economics that continue to exceed our expectations, finishing the year as the first US online operator to reach over $1.1bn in gross gaming revenue.”

Jackson concluded: “During this exceptionally testing time, we have focused on safeguarding the welfare of colleagues and contributed more to the communities in which we operate.

“I would like to take this opportunity to thank all my colleagues for their ongoing commitment and resilience as we face these challenging times together. While the global outlook remains uncertain, our momentum remains strong and we look forward to the future with confidence.”