Flutter Entertainment has published its preliminary results for 2020, a year that saw it increase ownership of US sportsbook FanDuel Group and complete its transformative merger with The Stars Group.
Corporate revenues, said the firm, lifted to $6.1bn (FY2019: $2.9bn) reflecting a successful incorporation of TSG assets from May 2020 onwards. Group sports betting revenues, meanwhile, saw a 64% increase to $3.8bn (FY2019: $2.2bn) despite an ‘irregular sporting calendar’, which the group noted had impacted staking levels across its Paddy Power Betfair, Sky Bet and Sportsbet brands during H1.
The growth and integration of its new business units helped Flutter post a group-wide adjusted EBITDA of $1.2bn – up 109% on FY 2019 results of $589.9m. Completing year one of its TSG enlargement, Flutter declared corporate profits of $1.4m, as the company chose to account for $599.7m in non-cash acquisition items.
CEO Peter Jackson, updating investors, said: “2020 was an historic year for the group as we completed our merger with TSG, commenced the integration of our two businesses and increased our ownership of FanDuel in the US, whilst at the same time navigating the challenges presented by the COVID-19 pandemic.”
Talking more about Flutter’s ambitions and The Stars Group merger, he stated: “The strategy within our International division to attain global scale and diversification was greatly accelerated by the merger, adding new podium positions and many more top ten markets.
“Given this significant expansion, we have now sharpened our investment focus within PokerStars, identified key target markets and tailored plans for our brands and products. Having attained a leadership position in the US, our strategy now is to continue to grow it through further investment and leveraging the strong set of assets that we have.
“Ultimately, we believe that the online gaming sector is similar to other large digital markets, whereby the largest player achieves superior economics through operational leverage, creating a virtuous circle for future investment in product, marketing and generosity which in turn drives further growth.”
Jackson also hailed the growth of Flutter’s recreational player base across all key regions. In Q4 alone, he said, the group had over 7.6m monthly online players.
“Nowhere has our growth been more evident than in the US where we have consolidated our #1 position in this crucial market,” he added, “with customer economics that continue to exceed our expectations, finishing the year as the first US online operator to reach over $1.1bn in gross gaming revenue.”
Concluding, he said: “During this exceptionally testing time, we have focused on safeguarding the welfare of colleagues and contributed more to the communities in which we operate.
“I would like to take this opportunity to thank all my colleagues for their ongoing commitment and resilience as we face these challenging times together. While the global outlook remains uncertain, our momentum remains strong and we look forward to the future with confidence.”