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Flutter Warns On Earnings Due To Sports Fixtures Cancellations Amid COVID-19

Sports betting and gaming operator Flutter Entertainment plc (FLTR.L) Monday said it sees material impact on its revenue and earnings over the near term as multiple sports fixtures have been canceled or postponed to face the COVID-19 crisis.

In an update, the company noted that many national governments and sports authorities around the world have made the decision to postpone/cancel high attendance sports events. Meanwhile, some events are now being scheduled to take place behind closed doors, including some Australian sports as well as Irish and Australian horse racing.

In 2019, the company generated approximately 78% of its revenues through bets placed on global sporting events.

The company notes that in a scenario where restrictions remain in place until the end of August, including full suspension of Australian sports and the cancellation of Euro 2020, the company estimates that EBITDA would be reduced by approximately 90 million pounds to 110 million pounds.

The outlook assumes that UK and Irish shops remain open and that scheduled UK, Irish and Australian horse racing fixtures continue to run, even though behind closed doors.

Further, the company projects that Group EBITDA would be reduced by about 30 million pounds per month if horse racing is canceled in the three regions and UK/Irish shops be closed.

Peter Jackson, Chief Executive, said, "The challenge currently facing our business and the industry more widely is unprecedented in modern times. … 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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