Flutter Entertainment Faces Significant Revenue Loss Due to COVID-19 Cancellations

Flutter Entertainment, a prominent global betting company, has announced significant financial impacts due to the widespread cancellation and postponement of sporting fixtures worldwide as a result of the COVID-19 pandemic. The company, which generated approximately 78% of its revenues through bets placed on global sporting events in 2019, is bracing for substantial revenue losses.

In a recent update, Flutter Entertainment estimated that if restrictions on sporting events remain in place until the end of August, the company's EBITDA could be reduced by approximately £90-110 million. This estimate assumes that UK and Irish shops remain open and that scheduled horse racing fixtures continue to run behind closed doors. However, if horse racing is canceled in these regions and shops are closed, the company estimates an additional reduction of approximately £30 million per month.

Despite the challenges, Flutter Entertainment maintains a strong financial position with a leverage ratio of 0.7 times as of December 31st, 2019. Peter Jackson, Chief Executive of Flutter Entertainment, emphasized that the company's primary focus is on protecting the welfare of its employees and customers. He stated, "The challenge currently facing our business and the industry more widely is unprecedented in modern times. Our focus, first and foremost, is on protecting the welfare of our employees and our customers and we will leave nothing to chance in this regard."