bet365 put the loss down to an increase in costs across the business during the 52 weeks to 26 March 2023. Direct costs were 4.1% higher at £ 516.6m, with administrative expenses also up by 42.2% to £ 2.93bn. However, bet365 noted that higher spending allowed it to increase revenue during the year.
Operating loss for the year amounted to £ 37.3m, compared to a £ 15.4m profit in 2021-22. A further £ 62.6m loss was noted in fair value on investments, although this was slightly rebuffed by £ 27.2m in interest income.
Pre-tax loss amounted to £ 72.6m, compared to the previous year’s £ 49.8m profit. However, bet365 regained £ 3.2m in tax benefits and £ 11.4m from foreign currency translation.
After accounting for other factors, including £ 3.2m loss from the re-evaluation of land and buildings, this resulted in the £ 61.2m loss.
US expansion drives sports betting revenue growth
The headline figure for bet365 will be the loss. However, this does not tell the full story of the operator’s year, with significant revenue growth against this backdrop.
Sports betting and gaming revenue for the year climbed 18.9% to £ 3.39bn. This included a 15.0% rise in sports betting revenue and 31% hike in gaming revenue in 2022-23.
Alongside this, there was also a 29% rise in new customers, although this was lower than the previous year’s 48% increase.
As to how bet365 achieved this, CEO Denise Coates referenced several developments in her yearly notes. For sports betting, these include 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 in Canada.
bet365 hails “quality over quantity” approach in gaming
As for gaming, Coates said revenue increased along the general growth trend experienced in the last three years. This, Coates added, reflected the success of its “quality over quantity” approach to gaming.
Going into further detail on this growth, Coates said drivers included improved localisation in key markets, integrating content from leading providers, ongoing optimisation of in-house games content and licensing unique games mechanics into its offering.
Coates said investment continues into its proprietary Games Recommendation Engine (GRE). This, she added, is supported by releasing localised 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 localised products tailored to specific markets,” Coates said.
Source: GMB
