2024-01-06
Reading time 1:48 min
Online betting giant bet365 has announced £2.8 billion ($3.4 billion) in 2024 revenue, corresponding to the financial0️⃣ year ended March 27, a figure that implies a 2.9% increase from the prior-year period. However, increased customer acquisition costs0️⃣ in new markets led to an almost 90% drop in profit, which totaled £49.8 million ($60 million) – down significantly0️⃣ from the £469 million ($565.8 million) profit reported in the prior-year period.
While sports betting revenue declined by 2% year-on-year, gaming0️⃣ revenue climbed by 25%. The decline in sports gaming revenue was margin-based, as the total amount wagered increased during the0️⃣ period, and the number of active customers rose by 48%.
As for the sharp drop in profit, the gambling giant primarily0️⃣ attributes it to £320 million ($386 million) in extra administration expenses, which include advertising in new markets and investment in0️⃣ IT infrastructure and technology. Recent launches for the brand include Buenos Aires, Argentina; Colorado, US; Ontario, Canada; and the Netherlands.
Elsewhere0️⃣ in its report, the company noted staff numbers for the period rose to almost 6,100, up from 5,400 in the0️⃣ prior financial year, meaning staff costs were also up. However, some of this was offset by lower pay for directors,0️⃣ including chief executive Denise Coates — the company’s highest-paid director —, who received £213.4 million ($257.6 million), down by 16.5%.
Denise0️⃣ Coates, bet365 CEO
The company also discussed safer gambling in its report, stating: “The group is committed to delivering a safe0️⃣ environment for its customers and we continued to invest significantly in this area.” Improvements are being made to bet365’s Early0️⃣ Risk Detection System (ERDS), models that allow the group to identify and interact with customers at risk of, or experiencing,0️⃣ harm.
“Evaluation of ERDS continues to demonstrate a highly positive impact on player behaviour and an increased use of gambling management0️⃣ tools,” said the operator, which added it continues to look forward to the publication of the UK Government’s long-delayed White0️⃣ Paper as part of the ongoing review of the Gambling Act.
As for product development, investment in technology led to development0️⃣ with a specific focus placed on trading platform capability. Specific novelties include website enhancements; the introduction of a new Golf0️⃣ product and updated visuals within the Virtual Sports offering; the development of “Bet Builder” to introduce Rugby League, American Football0️⃣ and Australian Rules; the extension of the Match Live product by adding two esports games, and more.
While the latest financial0️⃣ results may be somewhat disappointing given bet365’s major scale, the company still has much to look forward to in its0️⃣ next financial year report — especially given it will be impacted by the recent 2024 World Cup, expected to boost0️⃣ operations.
