Flutter completes Sisal acquisition as Italian operator reveals H1 results

Flutter Entertainment has completed its £1.62bn acquisition of Italian lottery and online gaming operator Sisal, with the firm posting significant financial growth during H1 2022. Flutter confirmed the deal for Sisal in December 2021 when it agreed to acquire the operator from CVC Capital Partners Fund VI. The Dublin-headquartered firm will strengthen its grip on the Italian market, bringing its market share to 20% by adding Sisal to its existing Betfair and PokerStars brands in the country. Flutter confirmed that since the transaction was announced, Sisal has continued to perform well in the market with both revenue and EBITDA soaring. Sisal recorded year-on-year (YoY) revenue growth of 58% to £402m, while EBITDA jumped 51% to £120m for the first six months of the year. At the time of the announcement, Flutter revealed Sisal was expected to post revenue of £590m for the whole of 2021, with EBITDA to amount to £211m. Flutter did note that the comparisons YoY were impacted by Covid-19 restrictions. Sisal’s retail arm consists of 1,700 Sisal outlets and anther 40,000 concession points of sale, while it boasts 300,000 “highly engaged online average monthly players” and 9.6 million retail customers. Flutter said the transaction was completed using debt facilities with the firm’s expected weighted average cost of debt now sitting at approximately 3.4% for H2 2022. Flutter CEO Peter Jackson said: “I am delighted to add Sisal, Italy’s leading gaming brand, to the group as we look to attain a gold medal position in the Italian market. “For some time, we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation.”