Betfred reports operating loss in latest financial results

perator Betfred has recorded an operating loss of £76.7m for the year ending 27 September 2015, compared to profits of £31.5m in the 78 weeks ending 28 September 2014.

The operator has attributed the decline in its operating profit to exceptional items of £83.7m and the December 2014 introduction of the UK remote gaming duty, a 15% point of consumption tax.

The closure of its Betfred's Australian operations in December 2014 also impacted the operator's earnings.

With the exclusion of exceptional items, EBITDA was down from £101.9m to £56.5m across the same periods.

Betfred also posted gross turnover of £10.4bn for the 52 weeks to 27 September 2015, equivalent to £200.7m per week, compared to £13.3bn for the 78 weeks ending 28 September 2014, a rate of £170m per week.

In the report accompanying the accounts, the bookmaker said: “On an annualised gross basis, turnover for the period has significantly increased across the business as a result of an increased number of customers and an increased stake per bet.

“This demonstrates the group’s commitment and continued investment in both the UK retail estate, the online presence through betfred.com and totesport.com, and through Totepool betting on UK racecourses and through internal partners.

“Despite the significant increase in annualised turnover, the group’s results have been impacted by increased UK gaming taxes and lower margins as a result of a series of unfavourable results.

“The online business through betfred.com and totesport.com has felt the most significant impact of these challenges with a significant decline in earnings.”

In related news, Betfred has agreed a “multi-year” deal to broadcast Sky’s full portfolio of seven sports channels in its 1360 UK shops.