Flutter Entertainment PLC Acquisition of Tombola (7480S)
November 18 2021 - 1:00AM
UK Regulatory
TIDMFLTR
RNS Number : 7480S
Flutter Entertainment PLC
18 November 2021
18 November 2021
Flutter Entertainment plc ("Flutter")
Acquisition of Tombola, the UK's most recreational online bingo
operator
Flutter Entertainment plc is pleased to announce the acquisition
of Tombola, one of the UK market's leading online bingo operators,
for an enterprise value of GBP402m.
Tombola, with teams primarily located in Sunderland and
Gibraltar, is a successful bingo-led gaming company with an
emphasis on providing a low staking bingo proposition to a highly
engaged customer base. Tombola was the first major UK focused
operator to introduce both mandatory staking and deposit limits,
building a highly sustainable player base over the last 16 years.
The key features of the business are as follows:
-- Fully regulated revenue base with over 80% coming from the UK and 16% from Italy and Spain
-- A market leading bingo proposition with a vibrant player community acting as brand advocates
-- Revenue CAGR of 23% over the last 5 years(1)
-- Circa 400,000 average monthly players (AMPs)(2) with over 700 employees
The addition of Tombola to the Flutter portfolio delivers
several key strategic advantages:
-- Diversification of Flutter's products, expanding the Group's
position in a product vertical in which it has historically
under-indexed
-- Addition of an engaged and sustainable player base, with many
customers active with the brand for multiple years
-- Enhancement of Flutter's online gaming presence in its core
UK market, at an attractive valuation
-- Addition of further product capabilities and expertise
-- Aligns with Flutter's safer gambling strategy of expansion in our recreational customer base
In its financial year to end April 2021 Tombola generated pro
forma revenue of GBP164m and EBITDA of GBP38.5m. Under the terms of
the transaction, Flutter will pay GBP402m in cash upon completion
for 100% of the business. The transaction is conditional on merger
control clearance by the UK Competition and Markets Authority and
is expected to complete in Q1 2022.
Peter Jackson, Flutter Chief Executive, commented:
"As the world's leading online gambling operator, Flutter is
delighted to add Tombola, the UK's premier bingo brand to the
Group. Tombola is a business we have long admired for its product
expertise, highly recreational customer base and focus on
sustainable play. The brand aligns closely with Flutter's safer
gambling strategy, a key area of focus for us. I am excited to
combine Flutter's digital marketing expertise with Tombola's
operational capabilities within the UK & Ireland division. As
the time comes for Phil to hand over the reins, I would like to
thank him for building the success story that the business is
today, and I look forward to welcoming the Tombola team to Flutter
and growing a sustainable business for the future together."
Contacts:
Investor Relations:
David Jennings, Group Director of Investor
Relations & FP&A + 353 87 951 3560
Ciara O'Mullane, Investor Relations + 353 87 947 7862
Liam Kealy, Investor Relations + 353 87 665 2014
Press:
Lindsay Dunford, Corporate Communications + 44 79 3197 2959
Robert Allen, Corporate Communications + 44 75 5444 1363
Billy Murphy, Drury Communications + 353 1 260 5000
James Murgatroyd, Finsbury + 44 20 7251 3801
(1) Growth from year ended 30 April 2016 to 30 April 2021
(2) Average number of players in the 12 months to 30 April
2021
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END
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