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NEWS 12 June 2019

Betfred posts £40.7m loss as retail costs undermine revenue growth

By Tim Poole

Betfred has reported a £40.7m ($51.8m) loss after tax for the 12-month period ending 30 September 2018.

The loss is significantly higher than the operator's 2017 deficit of £28.7m and was primarily the result of retail costs.

Betfred was able to post a 7% year-on-year increase in the amount wagered by customers, to £13.49bn.

Revenue (turnover) rose by an even higher figure of 15%, to £727.6m, with gross profit subsequently also growing 15%, to £573m.

EBITDA before "operating exceptional costs" was up 43% to £119.4m.

But the aforementioned costs totalled £119.6m, heavily impacting Betfred’s operating loss for the trading period.

Betfred suggested the UK Government’s reduction of fixed-odds betting terminal maximum stakes from £100 to £2 had impacted the loss (although the restrictions were only implemented on 1 April 2019).

Predominantly however, the exceptional costs related to "impairments of the retail division following the results of the Triennial review."

RELATED TAGS: Online | Land-Based | Financial
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