Bet365 has returned to operating profits as the Coates-owned family business reports improved sports betting results, though earnings from gaming remain flat.
Filing its corporate accounts for 2023/2024 with Companies House, Bet365 reported operating profits of £396m, reversing the previous fiscal year’s losses of £25m.
For the year ending 31 March 2024, bet365’s corporate revenues stood at £3.72bn, reflecting a 9% increase compared to £3.42bn in 2022/2023.
A management statement highlighted an 11% increase in sports revenues, driven by positive expansion into the US states of Louisiana, North Carolina, and Pennsylvania. Additionally, in established markets, bet365’s sports results were bolstered by enhancements to its trading platform and improvements to in-play and pre-match offerings.
Notably, Bet365 sustained its sports growth despite the challenging comparisons with 2022, which included FIFA World Cup trading.
However, management disclosed that gaming revenues remained “relatively flat” year-on-year, with casino income holding steady despite market headwinds affecting the live casino segment.
Corporate developments saw CEO Denise Coates significantly reduce her salary from £220.7m to £94.7m. Contributions to the Denise Coates Foundation rose to £120m, up from £100m in the previous year.
The 2023/2024 accounts included a loss of £30m related to Bet365’s ownership of Stoke City FC. However, from 8 July 2024, the club will no longer be listed as a Bet365 asset, with demerger costs expected to exceed £100m.
A positive outlook was outlined for new markets, with Bet365 reaffirming its commitment to acquiring licenses in locally regulated markets, confident in the long-term benefits of operating in commercially viable jurisdictions. Strategic initiatives are expected to “ensure consistent performance across its gaming products.”
Industry analysts at Regulus Partners noted that Bet365 remains a “cash machine for its owners.” However, its dominance is now being challenged by global competitors such as DraftKings in the US and Kaizen Gaming. With increasing competition and tighter markets, Bet365 must identify new growth engines beyond in-play betting.
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