Betfred post-tax profit soars 269% as it confirms unsuccessful M&A plot

Betfred posted an astronomical 269.8% year-on-year (YoY) increase in post-tax profit as the UK bookmaker reaped the rewards of a post-lockdown boom.

Profit after tax at the firm leaped from £5.3m to £19.6m for the 52-week period ending 25 September 2022, according to filings with Companies House.

Financial metrics across the board increased YoY for the operator. Punters wagered £8.8bn during the reporting period, up from the £7bn placed with the firm during 2021.

Correspondingly, revenue leapt 37.5% YoY from £526m to £723.2m while gross profit jumped 38.8% from £391m to £542.9m.

EBITDA increased from £46.5m to £67.8m and operating profit rose from £26.6m to £36.8m.

Of note, Betfred said its operating profit included a charge to exceptional costs of £2.2m.

Of this £2.2m, a charge of £686,000 was related to costs incurred on a potential acquisition that did not materialise. Betfred did not disclose any further information in relation to the failed M&A move in its report.

Elsewhere, Betfred did not provide breakdowns in terms of verticals or geographic spread of revenue.

The firm said: “Further disclosure of the results by type of event has not been disclosed as the directors consider this would be prejudicial to the business.

“Turnover split by geographical market is not disclosed as the directors feel it would be prejudicial to the interest of the group.”

However, Betfred did disclose its interests in South Africa and how the businesses had impacted the group’s performance.

After acquiring Sepels in February 2022 for £5.5m, the business has since contributed revenue of £2.2m and a net loss of £532,000 during the reporting period.

Betfred’s 70% stake in fellow South African firm Betting World, which it snapped up in May 2021, also returned £2.2m in revenue during the period, coupled with a net loss of £709,000.

The Warrington-based firm also noted it had acquired 51% of Lottostar following the conclusion of the reporting period as it looks to shore up its position in the African market.

In other strategic moves, Betfred confirmed it was planning to launch in further US states to complement its current presence.

The operator also shuttered several shops during the period, with the total number of retail units falling from 1,470 to 1,419.

Betfred said loss-making shops were constantly reviewed and closed when it was deemed necessary.

In terms of directors’ remuneration, total emoluments to directors increased from £1.5m to £1.9m from 2021 to 2022.

The group’s highest paid director, who was unnamed, netted £560,000, up from their previous pay packet of £456,000.

Total staff costs increased from £191.7m to £218.8m during 2022 as Betfred saw its total headcount rise from 7,497 to 7,761.

Betfred also increased its charitable donations during the reporting period, increasing from £157,000 in 2021 to £194,000 in 2022.

Finally, Betfred noted it hold net current assets of £82.4m, down from £199.9m in 2021.