Bet365 Reports a Bold Return to Form After Pandemic HitsPublished March 12, 2022 by Lee R
The pandemic slowed everybody down, but new figures from Bet365 indicate the beginning of recovery.
Sportbetting heavyweight Bet365 has reported solid gains for the year ending March 2021 to effectively offset the previous year's pandemic-related losses.
The good news comes in the form of a £2.81bn (€3.39bn/$3.76bn) revenue report for the full year ending March 2021.
Slight Year-on-Year Rise
Growth in gaming offset the pandemic-depleted 2020 totals included. The totals represent a 0.2% rise from Bet365’s full-year 2019-20 results when the pandemic effectively shut down live sports events for over half of that year.
Drivers of Recovery
The main driver of recovery was the sports and gaming department, providing the lion's share of Bet365's revenue at £2.77bn.
Bet365 reported gaming overall rose 8% to offset the losses in sports revenue. The in-play share provided 68% of sports revenue, falling off from 2020's total of 75%.
Total wagers on sports dropped for the second consecutive year, by 13%.
Club Ownership Contribution
Football club and facilities revenue from Bet365 Group-owned Stoke City FC contributed another £29.3m.
Sports and gaming incurred all direct costs at £489.8m, leaving gross profit down year-on-year 3% to £2.32bn.
Bet 365's administrative expenses totalled £2.04bn, down £170.5m from 2020. Sports and gaming costs were at £1.95bn, with football clubs and facilities incurring the remaining £85.1m.
All told, operating profit for the year jumped to £285.5m, climbing 46.6% from 2020, thanks primarily to a decrease in remuneration.
Bet365's total profit before tax jumped a robust 242.3% to £469.2m, driven by gains on investments (£177.2m), interest income (£6.4m), and interest paid at £1,000.
These developments translated to dividends of £97.5m to shareholders for the year.
Patronage was a mixed tale, with the number of active customers up 13%, improving on a 4% rise in 2020. However, amounts staked fell 13%, as opposed to an 8% decrease in 2020.
Bet365 Director Comments
Bet365 Director Denise Coates explained the pandemic's impact on business:
“The global suspension of sports across all levels resulted in dramatically reduced revenues.”
“However, sport resumed in the second half of the period and revenues increased to above pre-pandemic levels.”
After the rough jolt of the pandemic, Bet365 certainly seems to have things gradually working in the right direction for recovery and further sustainability.