Flutter Entertainment Exceeds Profit Expectations
In the first half of 2020, Flutter Entertainment, owners of Paddy Power and SkyBet, reported an unexpected increase in profits
In the first half of 2020, Flutter Entertainment, owners of Paddy Power and SkyBet, reported an unexpected increase in profits. According to the brand, this was down to users swapping sports betting for online poker and casino games.
Peter Jackson, CEO of Flutter Entertainment, lauded a performance that resulted in the enlarged firm brushing off the effects of the pandemic, which led to sporting events being postponed or cancelled altogether and the closure of its network of high street bookmakers in the UK and Ireland.
Jackson said the impact of the pandemic on sport was “more than offset by an increase in the number of recreational customers playing our poker and gaming products globally, as people sought new forms of home entertainment”.
The group's revenue increased in the US and Australia as sports betting as horse racing had continued during the pandemic and benefitted from a greater television prominence.
Stockbroker Analysis at Jefferies Stockbrokers described Flutter’s performance as “another upbeat gambling sector update”, with the rise of casino games and online poker, lessening the blow of the pandemic for the industry.
Jackson stated the company was in good shape coming out of lockdown. Users who picked up on gaming during lockdown have since stuck with the company, while sports revenue had returned as sports such as football have picked up where they left off.
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