Bet365 has revealed its latest financials, and things are looking busy for the betting giant. A 9% rise in revenue, despite no big football tournaments, stands out. Here’s how the numbers stack up:

  • Sports and gaming revenue hit £3,696.1m, a 9% jump from last year’s £3,391.4m. The boost came from strong sports performance and an extra week of trading. Expansion into newly regulated US markets added to the growth.
  • Direct costs increased to £686.8m from £516.6m due to these expansions. Last year benefited from a one-off £76.3m accrual release, which impacted cost comparisons.
  • Administrative expenses dropped by £286.5m, driven by lower executive pay and exchange rate adjustments. Employee numbers rose to 9,145 staff, up from 7,567.
  • Operating profit for 2024 reached £396.6m, showing a recovery from the previous year’s loss. In 2023, the company recorded a loss of £24.5m, affected by high costs and operational challenges. This marks a substantial turnaround in financial performance within a year.
  • A £120m donation to the Denise Coates Foundation showed its commitment to charity.
  • Cash and current asset investments sit strong at £3,207.5m. This reflects a stable financial position, even as debtor levels climbed to £507.8m. Directors are confident about the long-term health of the balance sheet.
  • Stoke City Football Club, owned by Bet365, reported a £30.3m loss for the year. The club’s turnover hit £23.8m, down slightly from £21.5m. Investments in stadium upgrades continued with £2.8m spent.

The opinion of analyst Regulus Partners

Regulus Partners offered a first analysis of the financial figures:

  • Total revenue rose to £3.7bn, a 9% increase, with betting revenue up 11% and gaming revenue flat. Gaming now accounts for just 16.5% of the mix, worth over £600m.
  • Gaming’s flat performance is partly due to competitors catching up on product innovations and bet365’s weaker position in mass-market betting trends.
  • Customer funds declined 9%, ending the period at £394m, suggesting weaker deposit activity.
  • Global markets saw stronger growth, with UK online gambling up 7%, despite a challenging environment. Bet365’s single-digit growth underperformed compared to competitors achieving double-digit gains, raising questions about its competitive edge. Gaming performance, in particular, has lagged behind rivals.
  • In the US market, bet365’s progress isn’t translating into major revenue impact. DraftKings, its key competitor, now generates 85% of bet365’s revenue and is expected to outpace it soon. Meanwhile, Kaizen Gaming surpassed bet365 in Brazil, a critical emerging market.
  • Innovation remains a concern as in-play betting, once bet365’s stronghold, has matured. Rivals are excelling in areas like bet-builders, gaming, and customer engagement, leaving bet365 at a disadvantage. Its future growth may depend on exploring multi-brand strategies or acquisitions.
Bet365 financial figures 2024