Leading operator bet365 has unveiled its annual financial report for the fiscal year 2023, showcasing significant revenue growth while navigating challenges resulting in operational losses.
The comprehensive statement, encapsulating the period from April 2022 to March 2023, outlined a notable 19% surge in sports and gaming revenues, amounting to an impressive £3.39 billion ($4.31 billion). Gaming emerged as the primary driver of this growth, climbing by 31%, while sports exhibited a commendable 15% increase.
Several strategic factors contributed to this revenue uptick. The company’s introduction of new products, notably Lotto365 in January 2023, coupled with its appointment as the operating partner of the PGA Tour in June 2022, played vital roles. Moreover, bet365 reported an encouraging 29% surge in active customer engagement during the 2022 FIFA World Cup season, buoying the company’s financial performance.
However, despite a bustling year, bet365 experienced an operational setback, failing to generate profits in 2023. This mirrors the trajectory witnessed in 2022, where, despite the company’s profitability, it faced a notable downturn.
The sports and gaming segment registered an operational loss of £24.5 million in 2023, contrasting sharply with the previous year’s profit of £49.8 million and an operating profit of £41.7 million. This loss was partly offset by a £20.5 million year-on-year increase in receivable interest, resulting in an overall loss before taxation of £60.2 million. In comparison, the company made a £76.1 million profit before tax in 2022.
Increased revenues translated into escalated direct costs, surging by £96.3 million. The company’s expenditures on IT infrastructure, development, and technology soared by £585.2 million, attributed in part to bet365’s extensive global expansion endeavors. Correspondingly, the company’s workforce expanded by 11%, reaching a total of 7,567 employees.
Despite the revenue growth, the company’s contribution to the UK Exchequer in tax for 2023 witnessed a marginal decline, totaling £482.8 million compared to £493.1 million in the previous year, marking a 2.1% decrease.
Looking ahead to the fiscal year 2024, bet365 continues its global expansion initiatives, securing a foothold in several US states, including Iowa and Louisiana, in 2023. The company has shown promising traction, ranking among the top five most profitable operators in Ohio by December.
Additionally, bet365 has inked strategic partnerships with operators and suppliers worldwide, launching Pragmatic Play’s portfolio in Ontario and Play’n Go’s games in Greece. Collaborations with sporting entities such as the MLB’s Cleveland Guardians underscore the company’s commitment to broadening its global footprint.
The impact of these strategic maneuvers on bet365’s 2024 results remains to be seen as the company navigates its expansion initiatives amid the evolving landscape of the global gaming industry.
