Coronavirus: Flutter Entertainment estimates £90-110m EBITDA reduction
Flutter Entertainment has provided a market update in light of recent developments to do with the spread of coronavirus.
Referencing mass cancellations on the sporting calendar, the operator has projected a significant reduction in group EBITDA for the financial year.
According to Flutter, 2019 saw the company generate approximately 78% of revenue through sports betting.
To assist with the “quantification of the impact on the group” in 2020, the firm has estimated a reduction of group EBITDA by £90-110m ($110m-135m).
This is based on a scenario were all current sporting restrictions remain in place until August – including a full suspension of Australian sports and the cancellation of Euro 2020.
Should horseracing be cancelled and UK/Irish shops closed, Flutter projects a further £30m reduction in group EBITDA.
Peter Jackson, Flutter Entertainment CEO, said: “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.
“While our near-term profitability will be impacted by the essential measures being taken globally, the board will remain focused on protecting shareholder value and managing the business through these turbulent times.”
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