The Paddy Power owner saw profit slide 70 per cent after major sports events were cancelled amid the pandemic. Chief executive Peter Jackson said “maybe we are all bookmakers at heart and. Mar 03, 2021 Paddy Power-owner’s profits wiped out by mega-merger costs Oscar Williams-Grut, Yahoo Finance UK March 3, 2021 at 4:11 am Flutter Entertainment, the gambling group behind brands like Paddy Power, PokerStars, and Betfair, hailed a “transformational” year in 2020 as it reported surging sales but sinking profits. Fixed odds & betting on all the major sporting events including Belarusian Premier League, Nicaraguan Primera Division and Tajikistani Higher League. Bet In-Play Cash Out New Customer Bonus. Mar 02, 2021 Flutter Entertainment (FLTR.L), the gambling group behind brands like Paddy Power, PokerStars, and Betfair, hailed a 'transformational' year in 2020 as it reported surging sales but sinking profits Flutter said its revenue rose by 106% last year to £4.3bn ($6bn). Sales were up 27% in the 12 months.

The owner of Paddy Power and Betfair has agreed a merger with the company behind Poker Stars in a deal that would create the world's biggest online betting and gambling business.

FTSE 100-listed Flutter said it planned an all-share tie-up with Canada's Stars Group, creating a group whose combined revenues totalled £3.8bn last year.

It is the latest in a series of industry deals responding to the growth in online and mobile gambling as well as the relaxation of sports betting rules in the US.

Shares in Flutter rose 20% while rivals William Hill and Ladbrokes owner GVC were also ahead on the prospect of further consolidation in the sector.

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Flutter chief executive Peter Jackson said the deal would 'turbocharge' the company's existing strategy and 'provide world-class capabilities across sports betting, gaming, daily fantasy sports and poker, as well as greater geographical and product diversification'.

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The merger will see shareholders of Flutter own 55% of the new company with the rest owned by shareholders in the Stars Group.

It will have its headquarters in Dublin and its main stock market listing in London. The deal is expected to complete in the second or third quarter of 2020.

Flutter was formed following the 2016 merger between bookmaker Paddy Power and online business Betfair and today has a market value of around £6bn.

It has been increasing its focus on North America as the US market opens up while it faces higher taxes and regulations in its main British, Irish and Australian markets.

Stars Group bolstered its UK operations last year when it bought Sky Betting and Gaming for more than £3bn.

It had a market value of just over £3.5bn prior to the deal's announcement.

Russ Mould, investment director at AJ Bell, said: 'Regulatory pressures are increasing in most markets and the opening up of sports betting in the US is seen as a major source of growth for the industry.'

Flutter Entertainment, the gambling group behind brands like Paddy Power, PokerStars, and Betfair, hailed a “transformational” year in 2020 as it reported surging sales but sinking profits

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Flutter said its revenue rose by 106% last year to £4.3bn ($6bn). Sales were up 27% in the 12 months to 31 December 2020 when the impact of Flutter’s $11bn merger with The Stars Group, which completed last May, was factored in.

Gross profits rose 92% to £2.8bn and adjusted earnings were up 109% to £889m. However, pre-tax profits sunk 99% to £1m due to costs associated with the mega merger.

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Exceptional costs rose over 300% to £565m. Flutter blamed “an increase in the amortisation of acquired intangibles from £113m to £432m associated with the combination with TSG [The Stars Group] and deal costs associated with the TSG merger and the initial delivery of synergies.”

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Debt costs rose over 670% to £110m due to the “significant increase in debt” post-merger. Net debt rose to £2.8bn.

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Flutter cancelled its final dividend for the year, compared to a 200p payout per share in 2019.