A prominent British bookie, Betfred, recently published its financial figures, and the news wasn’t positive. They’re confronting substantial deficits. For the twelve months concluding September 27th, 2015, they declared a massive £76.7 million operating deficit. This follows a profit of £31.5 million the preceding year.
The firm attributes this decline to several elements. Primarily, they had to manage some non-recurring expenditures amounting to £83.7 million. Additionally, there’s the UK’s recent levy on digital wagering, implemented in December 2014. This 15% tax on remote gaming earnings has undoubtedly impacted their revenue.
Furthermore, Betfred had to cease its Australian operations in 2014, which negatively affected their overall results. Even excluding the one-time expenses, their adjusted EBITDA (a profitability indicator) still dropped from £101.9 million to £56.5 million.
However, it’s not entirely bleak. Betfred did experience a considerable rise in their total revenue, reaching £10.4 billion for the 52 weeks leading up to September 27th, 2015. They ascribe this to acquiring more patrons and those patrons placing bigger wagers.
The corporation maintains a hopeful outlook, emphasizing its dedication to its UK wagering establishments, its online platforms such as betfred.com and totesport.com, and its horse racing ventures through Totepool. Only the future will reveal if these endeavors will suffice to reverse their financial situation.
The company’s fiscal results suffered, as earnings decreased even with a substantial rise in annual revenue. This was attributed to a confluence of elements, including a hike in British gaming levies and a series of negative wagering results.
The digital segment of the enterprise, functioning via betfred.com and totesport.com, was especially impacted, experiencing a steep drop in profitability.
In brighter news, Betfred obtained a long-term agreement to broadcast all seven of Sky’s athletic channels throughout its 1360 UK wagering outlets.