Betfred Annual Report 2023: Rising turnover and falling profits
Date: 2024-07-10 Author: Leon Pierce Categories: PAYMENT SOLUTIONS
Betfred, one of the leading gambling operators, has published its annual report for 2023, covering the 53-week period ending October 1, 2023. The report provides a comparative analysis with the previous 52-week period ending September 25, 2022. The main attention is paid to the significant increase in turnover and the paradoxical decrease in profits.
During the reporting period, Betfred's total turnover increased by 25.6% year on year, reaching just under £908 million ($1.16 billion). This growth was driven by increased volumes of both retail and online gambling.
Retail and online gambling
In 2023, retail gambling volume was just under £577 million, down from £557.6 million in 2022. Online gambling saw an impressive 99.9% growth, reaching £331 million.
Despite gross profit rising from £542.9m in 2022 to £673.1m in 2023, operating profit fell 98.7% to just £467,000. This indicates a significant increase in operating expenses or other factors negatively impacting profits.
Profit and loss after tax
In 2022, Betfred made a profit after tax of £19.6 million. However, the company recorded a post-tax loss of £71.7m in 2023, highlighting the significant financial challenges the company faces.
EBITDA before exceptional items for the period was £117.2 million, up 72.8% compared to 2022. This indicates growth in earnings before interest, taxes, depreciation and amortization, although it does not offset the overall loss.
Charitable donations
Betfred significantly increased its charitable donations during the reporting period. Donations totaled £926,000, up from £194,000 the previous year. This demonstrates the company's social responsibility and commitment to supporting charitable causes.
In the January/February 2024 issue of Gambling Insider, Betfred CEO Joanne Whittaker took part in a special edition for CEOs. She spoke about her journey with company founder Fred Dawn and shared her views on the development of Betfred.
Other gaming industry news
Macau recently released its gaming industry revenue data for June, showing a 16.4% year-on-year increase in gross revenue to MOP17.7 billion ($1.72 billion). The trend is similar to results from another UK operator, bet365, earlier this year.
Betfred's 2023 annual report shows significant growth in turnover, particularly in the online segment, but also shows a significant decline in operating profit and an overall loss after tax. In the face of increasing competition and changing market conditions, Betfred must continue to adapt and seek new ways to improve profitability and sustainability.
