Significant Losses
Bet365 has reported a loss for the financial year 2022-23 despite an increase in revenue received from sports betting and gaming.
The UK-based bookmaker reported an overall loss of £61.2 million. This figure sits in stark contrast to the £42.8 million profit made at the end of the previous financial year, 2021-22. Pre-tax, the loss sits at £72.6 million compared to a £49.8 million pre-tax profit 12 months earlier.
Increased Salary for CEO
Bet365 CEO Denise Coates has once again seen an increase in her annual salary and dividend payment. In 2022, a year of profit, she took home £260 million. Her salary and dividend payment in 2023, a year of loss, came to £270.6 million.
The company says that running costs increased significantly during the 22-23 financial year and have played a significant part in the reported loss. The direct costs were 4.1% higher than the previous year at £516.6 million. Administration costs significantly increased 42.2% year on year to £2.93 billion. The operating loss of £37.3 million is notable compared to the £15.4 million made in the 21-22 financial year.
Bet365 clawed back some of its losses through £27.2 million in interest income, £3.2 million in tax benefits, and £11.4 million from foreign currency conversions. These were reduced by a £62.2 million loss in fair investments and a £61.2 million loss resulting from the re-evaluation of land and buildings.
Increased Spending
The betting company, based in Stoke-on-Trent, also said that increased spending had helped them improve their revenue throughout the financial year. Sports betting and gaming revenue increased by 18.9% to £3.39 billion. This can be broken down into a 15% rise in sports betting revenue and a 31% increase in gaming revenue.
The online gambling company noted an increase in the customer base which has risen by 29%. Again, this barely compares to the previous year, when the number of customers increased by 48%.
In her yearly report, Coates attributed several changes to the betting platform for the increased sports betting revenue. She noted improvements to the bet builder, bet boost products, and the trading platform. Coates also said there are more markets for pre-match and in-play betting.
Coates described the increase in gaming revenue as along the general growth trend of the last three years. She commented that providing games from popular developers, improving the optimisation of in-house games, and licensing more unique games have helped Bet365 to offer quality over quantity. She also added that live casino has been a focus in recent years.
The losses were also partly to blame on a continued expansion into the United States, which the company expects to see significant long-term returns generated by. During the financial year, Bet365 launched in six states: Colorado, Ohio, Virginia, Iowa, Kentucky and Louisiana. They also started operating in Ontario, Canada, cementing their status as a major player in North America. Coates noted that a focus on localisation will be a priority moving forward.
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