Flutter warns of £100m EBITDA blow amid sports blackout
Betting on global sporting events accounted for 78% of London-listed operator’s revenue in 2019
Flutter Entertainment has warned EBITDA could take a hit of between £90m-£110m if coronavirus restrictions remain in place until the end of August 2020.
Many sporting events have been cancelled or postponed since the virus outbreak, while global gambling territories, including Italy and Spain as well as areas of the US, are on total lockdown.
In a move to quantify the potential impact, Flutter flagged an EBITDA reduction of approximately £100m if Covid-19 restrictions continue to bite, with the suspension of Australian sports and the cancellation of Euro 2020 included in the estimate.
The estimate assumes that UK and Irish retail remains open and that scheduled UK, Irish and Australian horseracing fixtures continue to run, albeit behind closed doors.
According to Flutter, EBITDA would drop by a further £30m per month should the operator’s retail outlets shut down in the UK and Ireland, with horseracing cancelled in all three markets.
Revenue would be hit even harder as global sports bets accounted for 78% of the London-listed operator’s total revenue in 2019.
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Flutter Entertainment CEO Peter Jackson said: “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,” he added.