• Full 2020 EBITDA of £1.4 billion
• 40% share in the US sports betting market
• Expects US market to hit £14 billion by 2025
• Group revenue up 36% year-on-year in the first seven weeks of 2021

A rise in casual online gamblers coupled with the Stars Group merger helped Flutter Entertainment to generous revenues in 2020.

Unaudited results released today show revenues to the end of December jumped to £4.398 billion from £2.140 in 2019, mainly due to that merger in May.

While all indicators were hugely positive, the company’s profit before tax dropped like a stone to £1 million (down from £136 million, although this was after the deduction of £432 million non-cash acquisition accounting adjustments.

That means no dividend will be paid for 2020. But while that will disappoint investors, they will be licking their lips at the prospects for the year ahead and beyond.

US sports betting market

The company more than held on to its 40% share of the lucrative US sports betting market. And it claims the US market could exceed a whopping £14 billion by 2025 – double the previous estimate.

Chief Executive Peter Jackson said: “Nowhere has our growth been more evident than in the US, with customer economics that continue to exceed our expectations, finishing the year as the first US online operator to reach over $1.1 billion in gross gaming revenue.

“We continue to grow our recreational player base across all key regions. In Q4 alone, the group had over 7.6 million monthly online players.

“While the global outlook remains uncertain, our momentum remains strong, and we look forward to the future with confidence.”

The results would have been boosted further were it not for the shutdown of sport for several months and the enforced closure of high street betting shops, affecting Paddy Power. The PPB Retail division, which includes Paddy Power shops, plunged to £2 million EBITDA from £76 million in 2019 thanks to the COVID restrictions. Shops had closed for, on average, 38% of 2020, leading to a 36% fall in revenues.

The PPB decline was more marked in Ireland than in the UK because more competitors were shut there. There were also favourable sporting results and a good performance from High Street gaming when it was available. Staff continued to be paid throughout the pandemic without Government assistance.

In contrast, the PPB online division saw revenues increase by 8% to £1.094 billion, thanks largely to a 6% rise in average monthly players to 1.4 million.

Meanwhile, Flutter confirmed its Australian business grew by 59% to £1.075 billion, fuelled by 675,000 new players at Sportsbet, with customers shifting from retail to online.

US revenues were up 81% to £695 million as more states unlocked the doors to legalised online betting. Flutter launched FanDuel online in four new states – Colorado, Tennessee, Iowa and Illinois, together with online gaming in Pennsylvania. FOX Bet was also launched in Colorado.

Safer gambling

Mr Jackson stressed again that safer gambling was critical to Flutter’s continued growth. “We are determined to lead the industry in implementing the highest standards of customer protection across our markets.

“This includes the UK, where we welcome the Government’s review of gambling legislation and support the delivery of a balanced framework that will protect vulnerable customers while allowing the many who enjoy a bet to continue to do so safely.”

Flutter recently unveiled further safer gambling measures in Ireland.