Bet365 profits up 10% to £448m in 2015-16
Accounts for year ended 27 March 2016 also show 5% increase in revenues to £1.55bn with sports wagering up to £37bn
Bet365 continues to go from strength-to-strength with the sports betting giant posting a 10% increase in profits to £448m for its 2015-16 financial year, on the back of a 5% rise in revenues.
According to accounts filed by the Stoke-headquartered operator this week, seen by EGR, total revenues for the 12-month period to 27 March 2016 were £1.55bn, up from the £1.47bn posted during the previous year which included the 2014 World Cup.
Total sports wagers increased approximately 6% to £37bn with active users up 11%.
Mobile was the main driver of growth, with bet365 reporting a 36% increase in handheld-derived revenues, “making mobile the most popular medium for betting”, Denise Coates, bet365 joint-CEO, noted.
Bet365’s In-Play product “again performed strongly”, according to the firm, making up 72% of sports revenues during the period – although this was slightly down on the 75% contribution posted the previous year.
The firm also said its sports betting performance had been bolstered by product improvements, increased live streaming and continued bonusing, such as its ‘Kick-Off’ bonus, which it offered for the sixth consecutive year.
“The combination of all these factors helped to generate significant increases in new customers, with the lifetime number of sign-ups approaching 23.1 million during the period,” Coates said.
Although no numbers were given for mobile gaming, the firm said the product was “maturing into a significant platform”, assisted by the introduction of native apps for both IOS and Android.
During the year the firm consolidated its Stoke-on-Trent offices into one while total staff numbers increased by 9% to 3,177.
Bet365 reported it had £1.1bn in cash in hand and at bank, which it said would be kept aside “for future trading purposes”. It also transferred £125m to investment group Goldman Sachs to invest in a portfolio with a “high degree of flexibility”.
The operator’s owners took home a combined dividend of £127.5m, up from the £75m awarded last year. Meanwhile, bet365 also donated £20m to the Denise Coates Foundation, a registered charity, bringing the operator’s donations over the past three years to £135m.
Separate to its sports betting and gaming operations, the Premier League football club owned by bet365, Stoke City, posted profits of £8.5m following a loss of £232,000 last year. The club’s annual wage bill rose from £62.9m to £77.2m.