Online betting giant bet365 has announced £3.4 billion ($3.7 billion) in 2023 revenue, an increase of 19%, corresponding to the financial year ended March 26. The company however reported a £61.2 million ($77.6 million) loss during its 2022-23 financial year.
Sports betting and gaming revenue for the year climbed 18.9% to £3.39 billion ($3.7 billion). This included a 15.0% rise in sports betting revenue and a 31% hike in gaming revenue in 2022-23. Alongside this, there was also a 29% rise in new customers, though this was lower than the previous year’s 48% increase.
According to Denise Coates, Bet365’s CEO, the sports betting hike in number is due to several improvements to the ‘Bet Builder’ and ‘Bet Boost’ products, as well as the trading platform with more in-play and pre-match markets now available.
Coates also spoke of Bet365’s growing presence in the US. During the reporting period, the operator launched in Colorado, Ohio, and Virginia, following this up with roll-outs in Iowa, Kentucky, and Louisiana. North of the border, Bet365 has also established a presence in Ontario, Canada.
As for gaming, Coates said revenue increased along the general growth trend experienced in the last three years. “This reflected the success of its quality over quantity approach to gaming.”
Aditionally, Coates said drivers included improved localization in key markets, integrating content from leading providers, ongoing optimization of in-house game content, and licensing unique game mechanics into its offering. She further explained that investment continues into its proprietary Games Recommendation Engine (GRE), which is supported by releasing localized content in each market. In addition, Coates noted “significant” growth in the casino segment, driven by live casino games.
“Live casino has been a strategic priority over the last three years and, as such, we have expanded our dedicated offering and created a number of bespoke and localized products tailored to specific markets,” Coates commented.
Denise Coates, Bet365's CEO
According to the company, the loss comes in contrast to a £42.8 million profit posted in the previous year. Bet365 put the loss down to an increase in costs across the business during the 52 weeks of the period.
Direct costs were 4.1% higher at £516.6 million ($566.9 million), with administrative expenses also up by 42.2% to £2.93 billion ($3.21 billion). However, Bet365 noted that higher spending allowed it to increase revenue during the year.
Operating loss for the year amounted to £37.3 million ($40.9 million), compared to a £15.4 million ($16.9 million) profit in 2021-22. A further £62.6 million ($68.6 million) loss was noted in fair value on investments, though this was slightly rebuffed by £27.2 million ($29.8 million) in interest income.
Pre-tax loss amounted to £72.6 million ($79.6 million), compared to the previous year’s £49.8 million ($54.6 million) profit. However, the operator regained £3.2 million ($3.5 million) in tax benefits and £11.4 million ($12.5 million) from foreign currency translation. After accounting for other factors, including a £3.2 million loss from the re-evaluation of land and buildings, this resulted in the £61.2 million loss.
In its review of the year, Regulus Partners said Bet365 is becoming a slightly more “normal” gambling company, with a growing gaming mix and more mass-market customer base.
“Bet365’s ability to leverage its historical in-play strength and 20 years of brand investment probably has several more years of growth and resilience to deliver – assuming no major regulatory issues – especially given the scale of platform investment,” Regulus Partners said.
However, Regulus Partners added that as Bet365’s USP is no longer clear, this means costs are likely to increase faster than revenue from now on. “Whether or not Bet365 deploys its balance sheet for regenerative M&A or continues to be a reliable but less threatening cash machine for its owners then becomes a very big question for the gambling industry as a whole,” Regulus Partners said.
Bet365 currently has a presence in a number of major markets around the world, including the UK, Australia, Germany, Italy, Sweden, the Netherlands, Ontario, and several US states. However, the company’s CEO said that the long-term focus remains on expanding.
“The group will continue its long-standing policy of pursuing licenses in regulated markets and, given its experience, believes it is well placed to benefit long-term in those countries where commercially viable regulation is adopted,” Coates said. “As part of this process, the group works with regulators through ongoing reviews.”
Original article: https://www.yogonet.com/international/noticias/2024/01/08/70322-bet365-posts-revenue-increase-of-19-but-sees-profit-loss-reach-776m-in-financial-year-2023
