LONDON (ShareCast) - (Sharecast News) - Paddy Power Betfair owner Flutter Entertainment said on Monday that it could take a hit of up to £110m to earnings if sports fixing restrictions due to the coronavirus remain in place until the end of August.

The company, which in 2019 generated about 78% of its revenues through bets placed on global sporting events, noted the fact that many national governments and sports authorities around the world have either postponed or cancelled high attendance sports events to delay the spread of Covid-19.

"This will obviously have a material impact on the revenue and earnings of the group," it said.

"Quantifying the precise earnings impact on the group is difficult at this point as we do not have visibility on the duration of restrictions on sporting events. While most major global sports have been suspended/cancelled, there are some exceptions where events are now being scheduled to take place behind closed doors. These include some Australian sports as well as Irish and Australian horse racing."

The company estimated that if these restrictions remain in place until the end of August, earnings before interest, tax, depreciation and amortisation would take a £90m to 110m hit. This estimate assumes that its UK and Irish shops remain open and that scheduled UK, Irish and Australian horse racing fixtures continue to run, albeit behind closed doors.

However, should horse racing be cancelled in the three regions and its UK/Irish shops be closed, this would incrementally reduce group EBITDA by about £30m a month.

Chief executive Peter Jackson said: "The challenge currently facing our business and the industry more widely is unprecedented in modern times. Our focus, first and foremost, is on protecting the welfare of our employees and our customers and we will leave nothing to chance in this regard.

"While our near-term profitability will be impacted by the essential measures being taken globally, the board will remain focused on protecting shareholder value and managing the business through these turbulent times."

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