Bet365 reports 8% revenue dip to £2.81bn

Bet365 has reported an 8% decrease in revenue to £2.81bn for the 52-week period ended 29 March 2020.

The downturn was driven by the abrupt halt to key sporting events due to Covid-19 in the latter part of the year, combined with the fact there was no comparative major football tournament after the World Cup in 2018. The prior year was also boosted by a 53^rd week of trading.

Operating profit for the period plummeted by 74% to £194.7m, down from £758.3m in 2019, due to the reduction in revenue as well as an increase in remuneration.

Regarding remuneration, the total compensation of key management personnel for the period was £607.4m, up from £428.4m in 2019.

Sports and gaming revenue, which excludes Stoke City FC, also dropped by 8% to £2.76bn.

Sports wagers decreased by 8%, while the number of active customers rose by 4%. In-play represented 75% of sports revenue for the period as mobile sports revenue declined by 7%.

A geographical breakdown has not been provided by the business, although EGR understands approximately 25% of sports and gaming revenue, or £700m, was generated from the UK market.

Bet365 holds licences in 15 jurisdictions including New Jersey in the US. Its most recent licence was obtained in Germany.

Staff costs for the sports and gaming segment rose to £847.5m in the period, up from £670.7m in 2019, which is the primary reason for the hit to profit.

At the end of the financial period, 5014 staff were employed by the operator.

The total tax contribution to the UK Exchequer made by bet365 for 2020 reached £614.6m, up from £448m in 2019. This included tax on dividends made by the group.

Bet365 CEO Denise Coates said: “On behalf of the board I am pleased to report that the group continued to make considerable progress during the period, particularly in the priority area of safer gambling, where significant investment and developments have been made.

“The period also saw the initial impact of Covid-19, with sport at all levels halted across the world. I am delighted with how the group responded and adapted to these challenging circumstances.

“We continued to operate the business successfully throughout the lockdowns with business continuity plans enacted resulting in staff being able to work from home whilst significant investment was also made to ensure the office environments were Covid-secure.

“The group also continued to further evolve its sports offering. In addition, we launched our first US online operation in the state of New Jersey,” she added.

In March, EGR examined the remarkable ascent of bet365, 20 years after the business began life from a portable cabin on a Stoke-on-Trent car park.

Stoke City, the football club owned by Bet365 Group, saw revenue fall 33.9% to £54.2m after the club was relegated from the Premier League.

More to follow…