In the finance sector, Betfred experienced a significant increase in total wagers for the year, reaching £8.80bn, which marks a substantial 25.8% year-on-year growth. The operator’s gross profit also saw a notable rise, reaching £542.9m compared to the £391.0m recorded in the previous year.
To arrive at the gross profit figure, various payments were deducted from the £723.2m turnover. The turnover itself witnessed a significant increase of 37.5% year-on-year. Among the payments, betting duty accounted for the largest amount, totaling £76.8m. Additionally, machine betting duty amounted to £53.8m, while commissions paid reached £38.2m. The statutory betting levy accounted for £11.3m. Consequently, after deducting these payments, the gross profit was determined.
Administrative expenses, prior to goodwill and license amortisation, amounted to £491.7m. When including goodwill and license amortisation, administrative expenses reached £15.1m. The operator also faced exceptional costs of £2.2m. However, these expenses were offset to some extent by other operating income, amounting to £3.0m.
As a result, the operating profit climbed to £36.8m, marking a robust increase of 38.1%. Two expenses, namely losses from other fixed asset investments and interest payable, stood at £4.1m. However, these were balanced by income from interest receivable, totaling £5.1m, ultimately resulting in a pre-tax profit of £37.7m for Betfred. This marked a significant rise of £31.7m from the previous year’s figure of £6.0m.
Tax on profit amounted to £18.2m, ultimately bringing the total profit for the year to £19.5m. This signifies a rise of £14.3m compared to the preceding year.
In terms of activities during the year, Betfred expanded its presence in the United States by launching in Louisiana and Arizona and also explored opportunities for growth in South Africa through a partnership with LottoStar. However, it is worth noting that shortly after the conclusion of Betfred’s financial year, its parent company, Petfre Limited, was fined £2.8m by the UK Gambling Commission due to deficiencies in anti-money laundering and social responsibility measures.
