UK – Flutter snaps up Tombola bingoBy Phil - 22 November 2021
Flutter Entertainment has bought Tombola, the UK’s most recreational online bingo operator and one of the UK market’s leading online bingo operators, for an enterprise value of £402m.
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.
It has a fully regulated revenue base with over 80 per cent coming from the UK and 16 per cent from Italy and Spain with revenue CAGR of 23 per cent over the last five years and around 400,000 average monthly player.
The addition of Tombola to the Flutter portfolio delivers several key strategic advantages including a diversification of Flutter’s products, expanding the Group’s position in a product vertical in which it has historically under-indexed. It will also enhance Flutter’s online gaming presence in its core UK market, at an attractive valuation
In its financial year to end April 2021 Tombola generated pro forma revenue of £164m and EBITDA of £38.5m. Under the terms of the transaction, Flutter will pay £402m in cash upon completion for 100 per cent 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.”