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