Flutter Entertainment’s 2020 Revenues Surge After TSG deal

Flutter Entertainment has posted a 28% rise in total group revenue to £5.2 billion for the full year of 2020 boosted by the integration of The Stars Group (TSG) business.

Merger With The Stars Group Pushes Flutter’s Growth

Flutter Entertainment posted its financial results for 2020 today. Full-year total group revenue at the world’s largest online betting group is up 28% to £5.2 billion. The increase is due to the integration of The Stars Group (TSG) business.

Paddy Power, Betfair, and Poker Stars owner reported £1.4 billion adjusted EBITDA, an increase of 23% on a pro forma constant currency basis. That excluded an EBITDA loss of £170 million in the USA, which is currently a booming market and is expected to double its previously estimated size.

Flutter Entertainment maintained its US online leadership with 40% sports betting and 20% gaming market shares in Q4. The company merged with The Stars Group last May and increased its holding in its US FanDuel brand in November.

Australia-based revenue continued the growth trend from Q3 and surged 59% last year to just over £1 billion. Revenue from the US market soared by 81% on a constant currency basis to £695 million.

Flutter shared that it had acquired 350,000 new sportsbook and gaming customers during the recent Super Bowl week. The number broke all records and exceeded the operator’s entire 2019 customer acquisition numbers.

Sports betting operations experienced a 25% year-on-year constant currency rise. The uptick generated revenue of £3 billion in 2020 (up 25% YoY). Also, gaming revenue reported a 32% year-on-year jump to £2.3 billion.

“Nowhere has our growth been more evident than in the US, with customer economics that continue to exceed our expectations.”

Peter Jackson, CEO, Flutter Entertainment

Annual revenue was up by 8% in the mainly Britain and Ireland-based Paddy Power and Betfair online division. Sky Betting & Gaming (SBG) revenue leapt 32% in 2020 to £975 million, with a 34% increase in sports betting revenue, which reached £590 million and a 31% rise in gaming revenue to £385 million.

2021 Starts On a Positive Note

Flutter revealed a six-point multi-year strategy aimed at boosting growth in its international business. The growth plan includes a combination of product, technology, and marketing, and could potentially include bolt-on acquisitions.

Group revenue increased 36% year on year in the first 7 weeks of the year to February 2021. The beginning of the year has brought a strong momentum for the operator with growth in player volumes across all divisions.

Covid-19 restrictions are having an impact on the retail business in the UK and Ireland. The company estimates a monthly EBITDA loss of £9 million for each month that both UK and Irish retail estates remain closed.