A sporting chance: BoyleSports’ online MD talks Brexit, M&A and UK ambitions

BoyleSports’ quest to stamp its authority on the UK gambling market is hardly a secret. The Dundalk-headquartered firm, which remains the second largest bookmaker in Ireland, has gone on the record on numerous occasions to discuss its ambitions for cracking this cutthroat market. But not since its unsuccessful attempt to scoop up some of the 370 shops resulting from the Ladbrokes Coral merger back in 2016 has BoyleSports arguably been as close to realising its ambition.

The Irish bookmaker believes as many as 3,500 shops could be forced to close once the UK’s crackdown on FOBT stakes has taken full effect. While the FOBT review has muddied the waters for its UK strategy in many ways, BoyleSports is keen to get a slice of the action if the situation presents itself. And such a retail expansion would clearly have a knock-on effect on its digital ambitions too.

“We have had an online presence in the UK for some time and a retail business would be a solid addition to that digital footprint,” Eddie Bennett, BoyleSports’ online manging director, tells EGR Intel. “We find that people who bet with you online are more likely to have a retail relationship with you. This is something we are giving a lot of attention to at present.”

Eddie Bennett, Online MD at BoyleSports

Indeed, BoyleSports is currently in the process of delivering this seamless solution across retail, online and mobile to its customers. And with its online business growing at double-digits year-on-year already, the company seems to be in a strong position to capitalise on any new opportunities going forward.

EGR Intel: How has business been for BoyleSports’ online operations for the last 12 to 18 months?

Eddie Bennett (EB): Our online business, like our retail business, is doing very well. We grew our business by 10% last year in what is a very competitive marketplace. Online and mobile did especially well with year-on-year growth of 30%. BoyleSports is putting a lot of attention into the mobile market right now as all the evidence is that this is where the growth is and will continue to be for some time.

The first five months of this year have also continued on a positive trend with overall turnover up a further 10% on 2017. Meanwhile, our digital turnover is up 16% with mobile up 23% year-on-year. These numbers, coupled with revenue growth of more than 40%, gives us comfort that we are doing the right things with our business and for our customers. As a business, we are debt-free with a very strong balance sheet, which is a good place for any company to be.

EGR Intel: Can you give an overview of how BoyleSports’ online division is now structured between Ireland, UK and Gibraltar?

EB: As you know, Gibraltar is the biggest hub in Europe for gaming companies, so there is a wealth of expertise available there, which we would struggle to get access to in Dundalk, or even in Dublin or London. So we have a team of people there managing the day-to-day operations of our marketing activities. Despite having some of our operations in different geographies, we have a very solid operating process that allows us to communicate seamlessly with each other, thereby not compromising our overall objectives of growth and development. In this modern world, borders are not a barrier to good communication and progress. Quite the contrary.

EGR Intel: Brexit is clearly a concern for a number of businesses, particularly those based in Ireland and Gibraltar? How worried are you by the impact it could have on BoyleSports?

EB: We are an indigenous Irish business that has retail operations on both sides of the Irish border. In addition to this, we have a fairly sizeable UK digital business. Based on these two facets of our business, it is safe to say that Brexit is an area that we, and our professional partners, keep fairly close to. We are headquartered out of Dundalk, Co. Louth, with a number of our workforce coming from Northern Ireland, so you can imagine that talk of a hard border isn’t terribly popular within our HQ.

This dual-country commitment does give rise to uncertainty around currency fluctuations but thankfully, we have a natural currency hedge. We expect there to be some sort of impact. That said, nobody, including the UK and Irish governments, yet understand the scale of that impact and it serves no purpose to engage in catastrophising. Whatever happens, we are agile enough to face whatever is presented to us and confident in our ability to deal with the outcome. We know from recent correspondence with the Gibraltarian authorities that they are working tirelessly on the situation and are confident they can provide a stable environment for incumbents and prospective remote licensees.

EGR Intel: How has the business changed since Conor Grey took over from John Boyle as CEO a year ago, and what impact has this had on the online team?

EB: Before taking over the CEO role, Conor was the COO and the person we dealt with on most matters, so that changeover has not been disruptive for us. I’d say Conor brings a new energy to the business. He’s keen to make his mark and having been responsible for the digital business in the past, he appreciates its importance.

EGR Intel: It was said at the time that John would be focused more on M&A opportunities, particularly in the UK. Is this still the case, and have there been any major developments in this regard?

EB: We have been seriously interested in a UK high street presence for a number of years. That’s on record. We have hit the post on a couple of occasions, no later than the attempt to buy the 370 shops that fell out of the Ladbrokes Coral merger in 2016. We remain committed to the objective, assuming the business operating parameters permit it. The business case must always stack up for BoyleSports. Providers need a critical mass to take on the UK, so our preferred approach would see us look to acquire a number of regional British bookmakers which we would merge under the BoyleSports umbrella. That process has been complicated by the FOBT review.

EGR Intel: What impact has the FOBT outcome had on your strategy?

EB: Although completed, it has yet to be implemented and, even when implemented, it will be some time before we see the full effect. As to what that full effect will be, we think that as many as 3,500 shops in the UK will be forced to close. As things stand, it is impossible to value a bookmaker in the UK. After the final decision is implemented, we will take stock of the situation, as will other operators. When the dust settles we would expect to be at the front of the queue if the right opportunity presents itself, owing to our ability to move quickly and effectively.

EGR Intel: Does BoyleSports feel it needs to complete an acquisition given what is happening in terms of regulation and with the market consolidating?

EB: In a word, no. We are in the market for new opportunities, both digitally and retail based, but it’s something we will only do if it makes commercial sense and the opportunity fits the BoyleSports business model. Of course, when we say we want to buy bookmakers in the UK, we are talking about Great Britain and Northern Ireland. BoyleSports already has a presence in Northern Ireland with seven retail stores, including our original store at Markethill in Armagh. But if the opportunity to buy a number of stores in Northern Ireland came up, we would be very interested. We don’t feel compelled to do anything in the M&A space.

There is a fair degree of consolidation going on in the industry – some of it has been more successful than others. That being said, we are content that our ownership structure and our size gives us the dexterity we need to respond quickly and effectively to our needs and the needs of our customers.

EGR Intel: How else do you think BoyleSports can stand out in such a competitive market like the UK?

EB: BoyleSports is privately owned and, as such, is not hamstrung by the ties of the PLC and global company requirements. As a result, we have a lot of flexibility in terms of what we can do for our customers, both digitally and in retail. We can offer some of the best specials available on the market; for example, Double Winnings, Russia even money on the opening game of the World Cup, 2nd, 3rd and 4th to the Fav in big meetings. The quality of these offers are not readily available out there and as a result, we can stand out in terms of what we give our customers.

From a retail perspective, the UK is a very different market to Ireland. In Ireland, the betting experience is all about sport and having the craic with your mates in the shop over a cup of tea or coffee. In the UK most revenue derives from FOBTs and, as a result, I think the UK betting sector has lost something of its relationship with the customer. It forces shops to compete at customer service and that’s where BoyleSports comes to the fore.

EGR Intel: Are you looking to expand beyond the UK and Irish gambling markets any time soon?

EB: We are looking to expand outside the UK and Ireland, but the timing is unknown. It really depends on where the opportunities come along that fit in with the BoyleSports business model. We keep a watching brief on Asia and on other international markets.

EGR Intel: What is going on at BoyleSports currently from a product perspective? Have you rolled out or going to roll out anything exciting?

EB: We have just launched a new mobile app, which as well as offering our widest range of products at very keen prices and our user-friendly navigation, it is also faster than any app we have had before and, we believe, faster than any app on offer by our competitors. Speed is important. If you are trying to place a bet over your phone, you don’t want to be waiting for pages to download – you want everything to happen very quickly and easily. The app was developed exclusively internally and it is a platform that we are happy with and believe can be used as a solid foundation for our business going forward.

BoyleSports’ BetBuilder product

More recently, we have rolled out our Bet Builder solution which we believe is as good as any that exists in the industry. This is a flexible, intuitive tool that allows our clients to build a bespoke market to their preferences. It was released pre-World Cup and has gone down well with our clients.

EGR Intel: How are you looking to tap into your Irish retail and online footprint from an omni-channel perspective?

EB: We find that people who bet with you online are more likely to have a retail relationship with you. This is something we are giving a lot of attention to at present. A retail presence supports an online presence, so we are trying to ensure that, as far as is possible, our customers enjoy a seamless experience across mobile, online and retail.

We are also looking to enhance that Irish experience even further, and it is something we hope to roll out in the UK as well. At this moment, while I can’t say too much, we are in the middle of a development phase that will formalise the omni-channel platform in BoyleSports, laying the foundation for us to offer our clients, both existing and new, a modern omni-channel platform that recognises the benefits of a retail and digital relationships with BoyleSports. The latter part of this year is shaping up to be a very interesting time for BoyleSports in this space.