Home Business News Paddy Power Betfair owner warns on sporting cancellations

Paddy Power Betfair owner warns on sporting cancellations

by LLB Editor
16th Mar 20 7:53 am

Betting firm Flutter, which owns Paddy Power Betfair, says the cancellation of sports events at home and abroad will “have a material impact on the revenue and earnings of the group.”

In 2019 the firm generated approximately 78% of its revenues through bets placed on global sporting events.

“While most major global sports have been suspended/cancelled, there are some exceptions where events are now being scheduled to take place behind closed doors. These include some Australian sports as well as Irish and Australian horse racing.

“In order to assist in the quantification of the impact on the group at this point, we estimate 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 our UK and Irish shops remain open and that scheduled UK, Irish and Australian horse racing fixtures continue to run, albeit behind closed doors. Should horse racing be cancelled in the three regions and our UK/Irish shops be closed, we estimate that this would incrementally reduce group Ebitda by approximately £30m per month.”

Chief executive Peter Jackson said: “The challenge currently facing our business and the industry more widely is unprecedented in modern times.”

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