Flutter: New shares for fresh money
The current crisis is in the gambling industry Creativity required. The biggest question for companies: How can financial repartee be secured? Exactly this question also concerns the gambling company Flutter Entertainment. The company has therefore now decided to issue further blocks of shares. In total, around 900 million euros in revenue should be achieved. However, not all investors can acquire these share packages.
Eight million shares for over 900 million euros
How Like many other gaming companies, Flutter Entertainment’s gaming giant is facing enormous challenges due to the corona crisis. The group needs funds and therefore announced that it intends to issue new blocks of shares. According to the group, a total of eight million new shares are to be issued. With a current value of around 117 euros per paper, thevalue of all packages would be more than 900 million euros. However, only institutional investors and no private investors should be able to secure the shares. One of these institutional investors is the US media company Fox Corporation. The group already owns a sizable portion of Flutter papers and will now apparently increase it. The gaming company did not specify how many shares Fox would like to acquire.
By the way, Flutter Entertainment was only founded in 2016.The gambling giant was initially created through the merger of the companies Betfair and Paddy Power. It was not until 2020 that Flutter was able to expand its own portfolio by acquiring the Australian Stars Group. Since then, according to their own statements, they have been the largest online gambling provider in the world.
Good time for the announcement
The fact that the announcement for the issue of further blocks of shares has taken place now is not necessarily a coincidence. Flutter presented its business figures just a few days ago – and they are extremely appealing. From January 1, 2020 to May 17, you could havecompared to the same period last year, for example, ten percent more sales could have been generated. A development that is of course pleasing for investors to observe. In addition, Flutter's figures prove at least a short-term success in the acquisition of the Stars Group. As the report points out, the Stars Group's revenue increased by a good 92 percent in the first five months of the year.
However, not everything is full of sunshine at the gambling giant either.Sales in the sports betting area developed negatively. This is mainly due to the worldwide cancellation of sporting events and the simultaneous closures of betting shops or betting shops. Sky Betting and Gaming's sales fell by 28 percent in the first few months compared to the previous year. The subsidiary Paddy Power was hit even harder, with sales falling by 54 percent.
Improvement also seems to be in sight for sports betting
There is no reason for concern at the group, even if the sale of the additional shares could certainly suggest this.Flutter Entertainment CEO Peter Jackson In a statement, however, he was quite relaxed and explained:
“As in other industries, betting and gaming have had strong ones Impact as large parts of the world went into lockdown. Some areas of the industry are struggling while others are thriving as consumers have changed their consumption habits.”
AlreadyHowever, many consumers' consumption habits may change again soon as more and more sports leagues gradually resume operations. For example, the ball has been rolling again in the national soccer league in Kenya for a few days. In Great Britain, the Premier League will be played again in about two weeks. That should give the sports betting business a good boost for the time being. However, it is still unclear when horse racing and the like will be allowed to start again. However, these events usually generate enormous sales, especially for betting providers in Great Britain.
Sports leagues get rolling again
The big wide world of sports has been at a standstill since March. In the meantime, however, the leagues are getting rolling again. The national league in football in Kenya was able to attract a great deal of positive attention. As the first top European league, the Oberhaus started operations again a few weeks ago. In the meantime, four match days have already been completed as so-called ghost games in front of empty ranks. The fact that the games can be played at all is due to the strict hygiene concept of the DFL. That concept apparently also serves as a model for other major leagues. Graduallyat least some normality seems to be returning. Last but not least, this is good for gambling companies like Flutter Entertainment.