Bet365 revenue climbs 19% but rising costs results in £60m loss
Latest accounts show spikes in main verticals and active customers were met with large increase in admin expenses to support exploration of new markets and the US
Bet365 has reported a 19% annual increase in revenue to £3.4bn, yet the online giant was hampered by a £60.2m pre-tax loss, according to the group’s latest set of accounts.
Published on Companies House, the report, which covers the 52 weeks to 26 March 2023, showed the Stoke-on-Trent-based firm built its revenue base on the back of the 2022 World Cup and “new regulated markets”.
Total revenue increased from 2022’s £2.9bn, while sports betting revenue increased 15% and igaming jumped 31%, respectively.
Despite these impressive increases, expenses and costs ate into the bottom line, with total profit from the segment landing at £76.1m.
Once again, bet365 declined to disclose the group’s geographical revenue spread.
The report stated: “A geographical analysis of turnover has not been given as in the opinion of the directors such a disclosure would be severely prejudicial to the interests of the group.”
Additionally, bet365 noted a 29% increase in active customers, compared to a 48% increase in the previous reporting period.
However, costs did bite at the privately owned firm, with 2022’s operating profit of £41.7m sinking to a £24.5m operating loss.
This translated into a pre-tax loss of £60.2m compared to pre-tax profit of £76.1m in 2022.
Bet365 pointed to a £96.3m increase in direct costs, with administration expenses soaring by £585.2m.
Staff costs also increased by 11%, with almost 1,500 additional staff being brought into the business over the 52-week period.
Operationally, bet365 said it had “invested significantly” in the US while it “welcomed” the proposals put forward as part of the white paper into the Gambling Act 2005 review.
Elsewhere, the business saw its net cash and current assets pile shrink from £3.3bn to £3bn, although the report noted that directors expect the balance sheet to “remain strong”.
In terms of charitable donations, bet365 pledged £105.4m to good causes during the reporting period, with £100m donated to the Denise Coates Foundation.
CEO Coates was paid £220.7m during the reporting period, up from £213.4m in 2022, while she also received her portion of a £100m dividend.
Total director remuneration amounted to £304.8m, up from £296m in 2022.