As per new filings on Companies House, revenue growth was driven by gains in both sports betting (+5%) and gaming (+25%), as well as Euro 2024 and expansion into new markets.
The family-owned operator said it had “continued to invest heavily” in the US as part of its expansion efforts stateside.
Market launches in Brazil, Peru and Serbia, as well as product development and adding new languages to customer support functions were highlighted as key cost drivers.
Direct costs increased from £686.8m to £896.5m, with bosses also pointing to a net one-off reorganisation cost of £59.2m following exits from certain markets.
EGR revealed the firm had exited China earlier this year. The financial report notes that bet365 is now focused on securing local licences. It states: “The operating boards recognised that point of consumption regulated markets offer the most robust foundation for long-term sustainable revenue. Therefore, they resolved to prioritise obtaining and maintaining gambling licences wherever feasible, focusing resource allocation on markets with long-term sustainable revenue streams in the coming years.”
On market exits, the report continued: “It became clear that despite the cogent arguments that could be used to support continued operations in certain markets, a number of markets no longer fell within the long-term sustainable revenue category. As such, the decision was made, via the group’s operating boards, to cease operations in those markets.”
Meanwhile, profit before tax came in at £348.7, sliding significantly from £626.6m the prior year. In turn, bet365 posted an operating loss of £43.4m compared to a profit of £116.7m in the previous reporting period.
This was also driven by an impairment of £41.1m in “respect of amounts owed by a group undertaking”. Cash at bank and in hand and current asset investments stood at £3.1bn, down from £3.2bn.
bet365 employed an average of 9,462 staff globally throughout the reporting period, up from 8,673.
CEO Denise Coates’ base salary rose from £94.7m to £104m, with total director remuneration rising from £124.2m to £129.6m. Total dividends were up from £110m to £353.6m.
The company also made a charitable donation of £130m to the Denise Coates Foundation.
The filing of the report comes after reports earlier this year that the Coates family were exploring a sale of bet365, rumoured at the time to be in the region of £9bn.
Industry commentators have suggested the exit from China and other unregulated markets, as well as the divestment of Stoke City FC, had created a more appealing asset for potential acquirers.
Source: EGR
