Bet365, a prominent figure in both the UK and the global gambling industry, recently disclosed remarkable financial results in its annual report for 2022-23. The report unveiled a substantial increase in sports and gaming revenue, which surged to £3.39 billion. This marked a significant 19% growth compared to the previous year’s revenue of £2.85 billion. Notably, gaming contributed significantly to this revenue spike with a remarkable 31% increase, while the sports sector saw a commendable 15% growth. Bet365 attributed these impressive figures to its expansion into various global markets and the impact of the 2022 Fifa World Cup.
Despite these revenue gains, the company reported pre-taxation losses of £60.2 million within its betting and gaming segment. Additionally, losses incurred by the Stoke City Football Club, owned by Bet365, amounted to £12.4 million. Consequently, the overall group recorded a substantial pre-taxation loss of £72.6 million. It is worth highlighting that Denise Coates, the Founder and CEO of Bet365, received a staggering £270 million in earnings for the 52-week period, as reported by The Times. Her salary accounted for £220.7 million of this total, representing an increase of nearly £8 million compared to her earnings of £213 million in the previous financial year. The remaining £50 million was distributed as a dividend, with half of it totaling £100 million donated to her charity, the Denise Coates Foundation, by Bet365.
Bet365 Experienced a Direct Cost Surge of £96.3 Million
Bet365’s report also underscored a 29% increase in active customer figures, which, while positive, represents a decrease from the 48% increase reported in the previous year. This increase in customer activity, coupled with the factors mentioned above, contributed to rising costs, particularly associated with Bet365’s expansion into the US and Canadian markets. As a result, direct costs ballooned by £96.3 million.
Administrative expenses also witnessed substantial growth, with a £585.2 million increase, while staff costs escalated by 11%. This was driven by Bet365’s need to accommodate its business expansions, leading to an increase of nearly 1,500 sports and gaming staff members. Consequently, the total number of employees reached 7,567 for the 2022-23 fiscal year, compared to 6,092 in the previous year.
While Bet365 faced a pre-taxation loss of over £60 million from its sports and gaming operations in the 2022-23 period, this result contrasts with the previous year’s performance. In the 52 weeks spanning from April 2021 to March 2022, Bet365 not only broke even but also achieved a pre-taxation profit of £76.1 million from its sports and gaming activities. Similarly, losses related to the Bet365-owned Stoke City Football Club improved, amounting to £12.4 million in contrast to the previous year’s £26.2 million in losses.
The company did highlight its achievements in product development, particularly in sports betting. Bet365’s website underwent enhancements, and the platform expanded its language options to include French and Latin-American Spanish to support its global outreach.
Furthermore, Bet365’s launches in various US states and Ontario in 2022 continued to gain momentum in 2023. Notably, gaming constituted a significant portion of Bet365’s betting and gaming segment profits, with the company emphasizing its partnerships with software suppliers, localization efforts, and prioritization of live casino products.
