Bet365 reported revenue of £2.85bn for the year ended 27 March 2022, showing a 2.9% YoY increase. The growth was primarily driven by its gaming operations, with a 25% increase in gaming revenue. However, sports gaming revenue saw a decline of 2% compared to the previous year. This suggests that the estimated sports betting revenue for 2021-22 is around £2.30bn, while gaming revenue is approximately £546m.
Despite the decline in sports betting revenue, Bet365 mentioned that the decrease was margin-based, as there was an increase in the total amount wagered and a rise of 48% in active customers. Regulus Partners, an industry analyst, stated that Bet365’s underlying sports betting performance achieved growth of around 15-20%, indicating that the overall performance was stronger than the 2% revenue growth implies.
Regulus also highlighted the changing competitive landscape in the industry, with the emergence of local market leaders. While Bet365 remains a market leader in in-play sports betting, it may face challenges in other types of markets. The report mentioned the possibility of acquisitions to maintain market share, although Bet365’s historical strength lies in being focused and excelling in one aspect rather than attempting to tackle all areas.
Marketing expenses saw a significant increase, driven by costs associated with raising brand awareness in new markets, as well as investments in IT infrastructure and technology. However, administrative expenses grew more rapidly, leading to a decline in operating profit by 87.8% to £41.7m. The pre-tax profit for the year reached £76.1m after taking into account non-operating income.
In addition to its operations in the gambling industry, Bet365 also owns Stoke City Football Club, which reported a loss of £26.2m for the year.
Overall, Bet365’s total profit for the year was £42.8m, down by 89.1% YoY.
