Flutter Entertainment commits to paying wages as Q1 online revenue rises 20%
PPB Online gaming revenue jumps 15% in first four weeks of coronavirus lockdown trading
Flutter Entertainment today reported online growth of 20% in a Q1 2020 trading update.
Total revenue for the period rose by 16% to reach £547m, or by 29% up until 15 March, when the majority of sporting events were cancelled due to the coronavirus pandemic.
Overall sports revenue for the period hit £407m after a 13% increase, driven by strong active customer growth in Australia and the US, while bookmaker friendly sports results provided a boost.
Group gaming revenue increased by 25% to £140m, rising to 27% after 15 March.
The strongest online growth in sports came from the US (24%) and Australia (21%), while PPB Online rose steadily by 6% to £159m, or by 19% before 15 March.
Gaming revenue for PPB Online jumped 17% or 9% on a pro forma basis, buoyed by strong performance in the Paddy Power and Georgia-facing Adjarabet brands.
In the four weeks of coronavirus lockdown trading from 16 March to 12 April, PPB Online revenue dropped 32% year-on-year. Sports revenue decreased by 57%, and then again by 65% since the suspension of Irish racing action on 25 March.
PPB Online gaming revenue has increased by 15%.
US revenue is 8% lower for the period, driven by a decline in sports revenue of 46%, although gaming revenue growth remains strong at more than 200%, driven by successful cross-sell strategies in both New Jersey and Pennsylvania via FanDuel.
Flutter has also pledged to fund the salaries of all employees using its own financial resources instead of furloughing staff and relying on government schemes.
“Should the duration of the crisis be such that not taking this support would jeopardise jobs, we will review our position,” confirmed the operator.
Flutter CEO Peter Jackson
Flutter CEO Peter Jackson pointed towards the operator’s “compelling” acquisition of The Stars Group which is set to complete in Q2 and said the “exceptional disruption” caused by Covid-19 has demonstrated the importance of both product and geographic diversification.
“Following the widespread cancellation of sporting events, group revenues have been more resilient than we initially expected, helped by the continuation of horseracing in Australia and the US,” said Jackson.
“During this unprecedented time, we are keenly aware of our heightened responsibility to ensure that we do all we can to promote responsible gambling.
“We have stepped up our own practices and are collaborating with our peers within the BGC to continue to raise standards across the sector,” he added.