Flutter's Paddy Power to close 21 underperforming outlets in Ireland, impacting 78 jobs

Irish gambling group Flutter has announced the closure of 21 underperforming Paddy Power outlets in Ireland, a move that will affect 78 employees. While the company has stated that it will offer redeployment opportunities to the majority of affected staff, it also acknowledged that there would be some job losses. This decision leaves Flutter with 230 Paddy Power betting shops remaining across Ireland. 

According to a statement from Flutter: "The majority of the 78 colleagues employed across the affected shops will be offered redeployment opportunities across the remaining estate and in close proximity to their existing employment.”

“However, the closures will unfortunately lead to a small number of job losses. We are consulting closely with colleagues and providing support to those affected by these changes."

Flutter's retail division in the UK and Ireland has seen positive results in the first half of this year, with an 11% increase in revenue. This growth was driven by a 15% increase in the first quarter and 8% in the second quarter. 

Adjusted earnings before interest, tax, depreciation, and amortization for the unit surged by 44% in the first half, reaching $32.5 million (€31 million). "These performance gains reflect share gains across our estate in both the UK and Ireland," Flutter noted when announcing its first-half results in August.

The decision to close the 21 outlets in Ireland is attributed to lease expirations and early terminations. David Newton, Chief Commercial Officer at Paddy Power, explained: "As with all businesses in the retail sector, we regularly review our estate to ensure we are operating efficiently and meeting the evolving needs of our customers.”

“Indeed, a well-invested retail estate remains a key component of our omnichannel strategy. While the majority of our estate continues to perform well and is growing market share, we have decided to close a number of underperforming shops."

The shops to close are in Dominick Street in Galway, Skibbereen, Terenure, Greenhills, Stoneybatter, Goatstown, Dalkey, Old Bawn, Westgate Road in Clonmel, Cloghran, Michael Street in Waterford, Kilkenny, Rathdrum, Templemore, Kells, New Ross, Athy, Parkgate Street, Blackrock, Ennis and Dillon's Cross in Cork.

Flutter Entertainment, currently the largest Irish company listed on the stock market in Dublin, is in the process of securing a share listing in New York in the coming months. The company has not yet made a decision regarding whether to retain its listing in Dublin, as its primary share listing is currently in London.