Flutter Entertainment Sees Double Revenue Increase in 2020
Flutter Entertainment (LON: FLTR), which is behind such online platforms as Paddy Power and Betfair, has said that it saw revenues double in 2020. This, it said, was due to a boom in online gambling activity at its sites. However, the profits also went through a downfall, thanks to the process of its huge merger with The Stars Group.
Even though many sporting events were cancelled at points last year, and multiple betting shops had to be closed for uncertain timeframes, the bookmaker saw its sales soar by 106%. This saw income hit £4.4 billion, thanks to gamblers turning to the online sphere during the pandemic lockdowns. At the same time, Flutter experienced an increase in the number of recreational players around the world. Recording its 7.6 million online players figure in the last quarter, Flutter noted it had witnessed a large increase in players from the United States.
On UK soil, the operator’s Paddy Power brand saw an average monthly increase of customers by 36%, while Sky Betting and Gaming witnessed an average increase of 12%. And that was just in the second half of 2020.
On the other hand, pre-tax profits went through a 99% decrease, hitting £1 million from £136 million in 2019. This was only to be expected though, thanks to the closure of massive numbers of retail outlets and the aforementioned costs associated with its £9.3 billion merger with The Stars Group. From this, the largest betting company the world has ever seen was created.
When the government plunged the country into lockdown back in March 2020, all of Flutter’s betting shops had to shut their doors. Flutter possesses 620 Paddy Power stores across the United Kingdom and Ireland, and it stated that for each month they remain closed, it loses £9 million. Yet, with the return of sporting events later on in 2020, Flutter witnessed a growth of 40%. And for the first seven weeks of 2021, Flutter appears to be keeping on top of things, with a reported 36% increase in group revenues.