Bet365, one of the world's largest and most well-known companies in the gambling industry, released its profit reports for the 2023 fiscal year. According to the available data, the company reports an increase in overall earnings, but a failure to secure profits. This presents an interesting twist, seeing how bet365 is widely regarded as one of the biggest earners in the business.
£3.39bn in Sports and Gaming Revenue
The report covers the financial year of 2023, spanning from April 2022 to March 2023. The revenues from sports and gaming have experienced a notable increase of 19% compared to the previous year, amounting to £3.39bn ($4.31bn).
Although the venture is reportedly broadening across the board, gaming has played a significant role in driving this growth, with a 31% increase. Sports betting, often seen as bet365's main provided service, has seen a 15% rise. Seemingly positive, these kinds of figures are consistent with trends across the industry. Moreover, the company introduced new products, such as Lotto365, and was selected as the operating partner of the PGA Tour in June 2022. Additionally, bet365 reported a successful 2022 FIFA World Cup season, with a 29% increase in active customers.
Despite a busy year, bet365 was unable to generate a profit in 2023, continuing the trend observed in 2022 where the company's profit significantly declined. In 2023, the sports and gaming segment of bet365 operated at a loss of £24.5m. This is in contrast to the previous year when the company achieved a profit of £49.8m and an operating profit of £41.7m. The loss was partially offset by a £20.5m increase in receivable interest compared to the previous year, resulting in a loss before taxation of £60.2m for the segment. In 2022, the company recorded a profit before tax of £76.1m.
From the outside, it seems it all comes down to the growing cost of business. Between new markets and a newly re-focused effort towards expanding online business, Bet365's IT infrastructure, development and technology costs increased year-on-year by £585.2m. Moreover, the total number of employees expanded by 11% over the year.
Despite the diving profits, the leadership is adamant that the company is taking a short-term loss in order to secure long-term viability. The results of this strategy remain to be seen, but the Bet365 online casino remains as strong as ever. If you want more info about it, make sure to check out our review.