Operator bet365 has submitted its annual financial figures. The statement included the company’s earnings for 2023, alongside statements regarding corporate governance, environmental performance and group strategy. The report reflects the 2023 financial year, stretching from April 2022 to March 2023.
Sports and gaming revenues were up 19% from this time last year, generating £3.39bn ($4.31bn). Gaming was the most significant contributor to this growth metric, up 31%, while sports was up 15%.
This revenue growth can be attributed to several factors. The company launched new products including Lotto365 in January 2023 and was elected as the operating partner of the PGA Tour in June 2022. The company also reported a positive 2022 FIFA World Cup season, with its number of active customers up 29%.
Despite how busy a year bet365 had, it was unable to generate a profit in 2023. This follows the trajectory seen in 2022, where despite the company making a profit, it was down significantly.
In 2023, bet365’s sports and gaming segment operated at a loss of £24.5m. Compare this with last year, where the company had a profit of £49.8m and operating profit of £41.7m. This loss was partially offset by a £20.5m year-on-year increase in receivable interest, with the segment operating as a loss before taxation of £60.2m. In 2022, the company made £76.1m profit before tax.
Increased revenues resulted in increased direct costs, with these costs up £96.3m. Bet365's IT infrastructure, development and technology costs increased year-on-year by £585.2m, in part due to the company’s global expansion efforts. To account for this, the number of staff at bet365 also increased, up 11% for a total of 7,567 members of staff.
The group contributed £482.8m to the UK Exchequer in tax in 2023. This is a 2.1% decrease from the year before, where the total tax contribution was £493.1m.
In the 2024 financial year, bet365 has continued to make business decisions widening its global reach. The company has gone live in over half a dozen US states including Iowa in June and Louisiana in November in 2023 and has shown signs of gradual success, being one of the top five most profitable operators in the state of Ohio in December.
The company has also signed many partnerships with operators and suppliers across the globe, including launching Pragmatic Play’s portfolio in Ontario in May and Play’n Go’s games in Greece in October. It also partnered with sporting bodies across the globe, including the MLB’s Cleveland Guardians.
We shall see how these business decisions will affect bet365's 2024 results.
