Paddy Power owner taps investors for cash as online gaming revenues jump
Flutter Entertainment, which also owns Betfair, said it intends to secure funds through the placing of eight million shares in an equity raise.
Paddy Power owner Flutter Entertainment has said it plans to raise cash to accelerate its expansion plans and bolster its finances amid coronavirus uncertainty.
The group, which also owns Betfair, said it intends to secure funds through the placing of eight million shares in an equity raise.
It came as the company, which completed its major merger with Stars Group earlier this month, revealed a jump in revenues for the current quarter on the back of strong online growth.
Group revenues jumped 10% in the period from the start of April to May 17 as it was boosted by a 92% surge in revenues from Poker Stars operator Stars Group.
It also reported significant jumps in its Australia and US arms, rising 56% and 61%.
The company said poker and gaming revenues grew as they “benefited from strong customer engagement” during the lockdown period.
It said growth has started to “moderate” as lockdown restrictions have begun to loosen and it said it expects this trend to accelerate as more economies open up.
Earlier in May, the gambling watchdog told betting firms to tighten their measures to protect problem gamblers after a surge in online gaming during the shutdown.
Meanwhile, Paddy Power saw betting revenues dive 54% as it was hit by the mass cancellation of sporting fixtures and the closure of betting shops.
On Tuesday, the Government confirmed that betting shops will be among the high street firms able to reopen their doors on June 15.
