Shares in the owner of Betfair and Paddy Power, Flutter Entertainment (LON:FLTR), have completed a remarkable V-shaped recovery following the sharp selloff due to coronavirus.
With the heavily touted V-shaped recovery in the global economy looking increasingly unlikely, the FTSE 100 gambling company has at least provided its investors with a strong recovery.
The recovery has completed with a 13% increase on Friday as a reaction to the betting group’s Q1 trading update.
Flutter’s Q1 revenue grew 29% to £547m from £478m in 2019, helped by strong performance in the gaming division.
With sporting events being heavily disrupted due to coronavirus lockdowns, Flutter’s strong performance was a surprise to markets and shares hit a 5-week high on the back of the announcement.
The rally took shares back above 85p and completed a sharp recovery from the selloff that started in early May.
Flutter Entertainment CEO, Peter Jackson, commented on the results.
“The Group performed very well in the period prior to the disruption to sporting events in mid-March. We delivered strong customer growth across each of our brands and benefitted from favourable sports results across our sportsbooks. Following the widespread cancellation of sporting events, Group revenues have been more resilient than we initially expected, helped by the continuation of horse racing in Australia and the US. Gaming continues to perform well across the Group.”
“During this unprecedented time, we are keenly aware of our heightened responsibility to ensure that we do all we can to promote responsible gambling. We have stepped up our own practices and are collaborating with our peers within the Betting and Gaming Council to continue to raise standards across the sector. We are also working hard to provide all the support we can to our employees and I would like to thank them for their ongoing commitment and support for each other during this difficult period.”
“While the current disruption is truly exceptional, it underlines the importance of product and geographic diversification. As such, the strategic logic of our combination with The Stars Group remains compelling. Following approval of the deal yesterday by the Irish Competition and Consumer Protection Commission, we look forward to completing the transaction in Q2 upon receipt of outstanding shareholder and regulatory approvals.”
