Global gaming giant Bet365 has disclosed pre-tax losses exceeding £70 million ($90 million) for its latest financial year, attributing the downturn to escalated expenses linked to venturing into new markets.
Managed by the Coates family, the company has registered pre-tax losses of £72.5 million ($92.43 million) for the year concluding on March 26th, 2023, a stark contrast to the £49.8 million ($63.49 million) profit recorded in 2022.
Despite a surge in turnover from £2.87 billion ($3.65 billion) to £3.41 billion ($4.34 billion) during the same period, Bet365 announced dividends amounting to £100 million ($127.5 million).
The financial challenges faced by the group stem from a substantial spike in costs associated with market expansions, coupled with investments in IT infrastructure, development, and technology.
This translated into a year-on-year surge of £585.2 million ($746.13 million) in administrative expenses. Concurrently, staff costs experienced an 11 percent increase, reaching 7,567 employees within the sports, gaming, and associated support operations by the close of the fiscal year, up from 6,092.
The company’s board, in a statement, acknowledged the high initial investments required for entering new markets but expressed confidence in the long-term contributions from these markets.
Despite the financial setbacks, sports and gaming turnover witnessed a robust 19 percent rise to £3.39 billion (4.32 billion), accompanied by a 29 percent increase in the number of active customers.
Denise Coates, the billionaire founder of Bet365, received a substantial payout exceeding £270 million ($344.32 million) in the past fiscal year, underscoring another lucrative year for the gambling company’s founder. Despite Bet365 posting a £60 million ($76.51 million) loss, Coates, as the controlling shareholder, received a salary of £220.7 million ($281.45 million) for the year ending March 26, 2023—a £7 million ($8.92 million) increase from the previous year.
Additionally, she is entitled to at least 50 percent of the £100 million dividend paid during the same period. The combined annual salary and dividend payment of £270.6 million ($345.09 million) surpasses the total of £260 million ($331.57) collected by Coates in 2022.
