Gambling firm bet365 has recorded losses of £72.6 million due to an increase in costs linked to entering new markets – but turnover hit £3.41 billion in its latest financial year.
The Stoke-on-Trent-headquartered company has posted results for the year to 23 March 2023, with a £60.2 million pre-tax loss in its sports and gaming division and a £12.4 million pre-tax loss from its football club and facilities compared to combined pre-tax profits of £49.8 million the previous year.
The latest turnover figure represents an almost 19 per cent increase on 2022’s figure of £2.87 billion.
The report to Companies House says sports and gaming venues grew 15 per cent and 31 per cent respectively and the group benefitted from a “positive” 2022 FIFA World Cup. The period also saw the number of active customers rise by 29 per cent.
bet365, which is run by the Coates family and owns Stoke City Football Club, has declared dividends of £100 million.
In her strategic report, Director Denise Coates said: “During the period significant development resource was committed in preparation for launching into new markets and to support changes in countries where the existing regulatory framework was being amended.
“During the financial period, the Group’s operating entities were awarded licences in multiple US states, whilst further resources were devoted to further expanding our footprint in both North and South America.”
She added: “Entering into new markets requires high initial investment, however the directors remain confident that these markets will deliver significant contribution to the Group in future periods.”
Investment in IT infrastructure, development and technology resulted in administrative expenses increasing year-on-year by £585.2 million.
The report also mentions the firm’s approach to the local community with £100 million during the period donated to support the work of the Denise Coates Foundation registered charity and highlighting a priority placed on recruiting employees and supplied locally wherever possible.
The group employed 7,567 staff within the group’s sports, gaming and associated support operations at the end of the financial period, up from 6,092.
