Bet365, a major player in the sports betting and gaming industry, has reported a significant loss of £61.2m (€71.0m/$77.6m) during its 2022-23 financial year. This comes as a surprise following the company’s prior year profit of £42.8m. The loss has been attributed to a noticeable increase in costs across the business during the 52-week period ending on March 26, 2023.
Direct costs saw a 4.1% rise, reaching £516.6m, while administrative expenses soared by 42.2% to £2.93bn. Despite these cost increases, Bet365 highlighted that the higher spending contributed to an overall boost in revenue for the year.
The operating loss for the year stood at £37.3m, a drastic difference from the £15.4m profit recorded in the prior financial year. In addition to the operating loss, Bet365 also reported a further loss of £62.6m in fair value on investments. However, this loss was partially offset by £27.2m in interest income.
The pre-tax loss for the company amounted to a significant £72.6m, in sharp contrast to the previous year’s profit of £49.8m. Despite the staggering loss, Bet365 managed to regain some ground with £3.2m in tax benefits and an additional £11.4m from foreign currency translation.
Accounting for various other factors, including a £3.2m loss from the re-evaluation of land and buildings, the company ultimately reported a £61.2m loss for the year.
The unexpected loss is sure to have an impact on the industry and will be closely watched by industry analysts and experts to understand the potential implications for Bet365’s future operations and strategies. Keep an eye out for further updates as the story develops.