Flutter Entertainment

Updated German and Greek tax assessments may create tax liability

  • Sectors : Gaming
  • Companies : Flutter Entertainment

Ratings and price correct at time of issue.

  • Flutter Entertainment

    Closing Price: 6410p

  • RATING 29/08/17

  • PREVIOUS RATING 18/09/15

    OUTPERFORM

DAVY VIEW

In the context of related revenues, Paddy Power Betfair’s (PPB) combined potential tax liability in Germany and Greece feels punitive. Whether the respective Appeals Courts ultimately agree or not, the potential liability represents c.1% of the current market cap and does little to impact its balance sheet strength. It is modest in a group context. However, it would clearly represent a disappointing (enforced) use of cash at a time when PPB has multiple investment opportunities at its disposal. The group is confident in its ability to successfully appeal both decisions.

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Feb 14 2019, 07:05 GMT

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