Paddy Power owner Flutter boosted by demand for online poker in lockdown

Flutter Entertainment, the owner of Paddy Power and Betfair, has recorded lower profits but cheered a first-half sales leap thanks in part to its merger with The Stars Group and people flocking to play poker online during lockdown.

Flutter’s chief executive Peter Jackson said the results for the six months to June 30 exceeded expectations as “we benefited from geographic and product diversification”. It said recent trading is also looking encouraging.

In May the FTSE 100 company, which is behind several global gaming and betting brands, completed a £10 billion takeover of Sky Bet owner Stars Group.

Stripping out trade from Stars, Flutter’s sales soared 49% to £1.5 billion. Pre-tax profit was 70% lower at £24 million, due largely to costs linked to the acquisition.

Including income from Stars, revenues improved 22% to £2.4 billion.

The performance came despite the firm having to grapple with shop closures and almost all live sport being suspended during the Covid-19 lockdown.

Jackson told the Standard: “A lot of people came to rediscover their love of poker. They got bored of Zoom quizzes." He said players were spending about £10 a week with the firm on poker.

The firm added that the continuation of horse racing in Australia and the US helped boost sport revenues.

Jackson said: “The second half has started well, with good sports betting performance following the return of major sport events, whilst gaming performance has remained resilient."

He added: "Looking ahead, we have identified promising opportunities to increase investment across the group and, while the outlook with respect to Covid-19 remains highly uncertain, the diversification of our group means we approach the future with confidence."

Recent big sporting events that have been good for the business include the Champions League final.

It was also announced that Rafael Ashkenazi, who was chief executive of The Stars Group until its tie-up with Flutter, has stepped down as a non-executive director of Flutter.