Flutter Up, Playtech Down, Gamesys Crawling Out of Debt

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A quick look at the current financial ups and down of the world’s biggest online gambling companies.

No company rides the wave of success forever. Even the biggest and brightest names of an industry suffer hardships now and again. Every wave has its crest and fall. It’s the companies that recover from each crash that attain ultimate success. The online gambling industry is a perfect example.

According to the latest revenue reports from all over the globe, major brands like Flutter Entertainment, Playtech and Gamesys are all experiencing the ups and downs of the pivotal waves of finance. Some are looking up; some are stumbling; others are recovering from errors of the past.

Ups & Downs of Biggest Online Gambling Companies

This week saw a trio of major iGaming operators and software vendors riding those waves. Ireland’s Flutter Ent announced a boost in cash flow, while Isle of Man-based Playtech reported a marginal loss. At the same time, London-based Gamesys is appreciating a bit of breathing room as that company crawls its way back out of debt.

2019 Revenue “Flutters” Skyward 14%

The head honchos at Flutter Entertainment have a lot to be grateful for as last year’s final revenue tallies come in. Following a strain of good fortune (including a pending merger with Pokerstars owner, The Stars Group), the Irish company, owner of Paddy Power, Betfair, Sportsbet.com.au, Adjarabet, FanDuel and others, proudly announced a 14.3% boost in revenue year over year.

The most notable increases came in sports betting and casino gaming, both online and on land. Sports betting operations were up 13.1% to £1.67 billion. Land-based gaming revenues rose 18.5% to £473 million. Online gaming jumped 6.1% to £1.01 billion. All told, the company pulled in £2.4 billion in 2019.

Flutter CEO Peter Jackson called the results a “testament to the quality of our products, brand and team.”

Playtech Records Net Loss Near €20 Million

The board room was less cheerful at Playtech headquarters this week, where the financial officers reported a total loss of €19.6 million on the year. It wasn’t all bad news, though. Overall, revenue was actually up an impressive 23% to €1.51 billion, thanks largely to a 56%, €900 million boost in B2C revenue.

Playtech Chairman Alan Jackson gave an optimistic statement that notes the strategically added expenses associated with “entering newly regulated markets, signing new customers, expanding existing relationships and continuing to innovate with new product launches.” Such elements combine to reflect the expected cost of “laying the foundations for our future growth,” said Jackson.

Gamesys Pays Down 7% of Debt

Last year, JPJ Group (JackpotJoy) purchased the flagging software brand, Gamesys Ltd, with hopes of revitalizing the once successful product. So far, so good. This week, the company reported a principle payment of £40 million on its loans, reducing its previous debt of £484.7 million by 7% ahead of their annual financial report, due March 17. The payment is expected to save Gamesys £2.7 million in interest payments this year alone.

Gamesys CFO Keith Laslop comments: “As we’ve stated previously, a key strategic goal for the Board is to have our long-term leverage ratio in-line with our peers… today’s paydown is an important first step in attaining that goal.”