Betway hails profitable 2017 after 2016 losses

Betway has announced it turned a profit in 2017 following the emergence of new figures this week that showed the firm with an operating loss of €37m in FY2016.

New financial data filed this week in Malta showed Betway with FY2016 revenues of €173.5m, but an operating loss of €37m thanks to heavy marketing spend.

The firm saw a 40% rise in 2016 operating costs to €201m, thanks to “extended business activities through a large marketing campaign which resulted in significant increase of turnover levels”.

Betway’s most dominant vertical was casino, with revenues of €99m but growth in the vertical was slow at 4%, while bingo revenues dropped by 26% to €6.9m.

Sports betting was the big gainer from the marketing spend, with revenues up 82% to €68m.

Betway has been hugely active in securing sponsorship deals throughout 2017, announcing partnerships across a range of sports including snooker, horseracing and esports.

And Betway CEO Anthony Werkman said the aggressive marketing spend had paid off, with the business turning a profit in 2017.

“In line with our original business and funding plan, Betway has been investing significantly into all elements of the business: product, processes, people, and of course marketing,” Werkman told EGR.

“The business is exceeding our original forecasts, and we have seen revenues increase five-fold over the last three years.

“I’m glad to say that the business in 2017 was profitable and we will continue to re-invest as we gain traction in a number of new and existing markets across the globe.”

Specific 2017 figures were not revealed.