The UK-based bookmakers Betfred seem to have generated a net loss over the company’s most recent fiscal year. The disappointing result is considered to be due to the negative influence of new taxes imposed on one hand, and to winnings stroke by lucky punters on the other hand.
According to the financial reports released by Betfred, the company suffered a serious operating loss estimated to £76.7 million over the fiscal year that ended on September 27th, 2015. This was a serious blow for the bookmakers, especially considered to the profit of £31.5 million generated in the 78-week period that ended on September 28th, 2014.
Betfred also revealed that its earnings declined almost by a half to £56.5 million over the period, but they were still up by 7.5% on a like-for-like basis.
Considering these results, Betfred is believed to be suffering from the same negative effects of the online point of consumption tax’ introduction and the increase in the retail Machine Games Duty, which have been bothering other UK-based Internet and retail betting operators as well. According to the bookmaker’s report, it has been seriously hit by the combination of the above-mentioned factors which caused a £16.3-million decline of the company’s annual earnings.
The President of Betfred Fred Done has been one of the most eager opponents of the new Authorized Betting Partner scheme of UK racing. In addition, it was hard for the company to point out that has increased its contribution to the UK racing business with £500,000 to £13.3 million over its most recent financial year. However, all the efforts invested in doing that may not be enough when the bookmaker’s monopoly in the business expires in 2018.
To make things even worse, Betfred also suffered £87.3 million worth of exceptional items. The results are said to be seriously influenced also by the closure of the Australian website of the brand in December 2014 which was due to the fact that the country’s Internet betting market seemed to be “overpopulated” and it was hard for Betfred to consolidate its presence there. The company’s performance was also hit by the unfavourable sports and racing results.
Despite the poor results posted by the bookmaker for its most recent fiscal year, its weekly turnover increased from £170 million in its previous report to £200.7 million in the current one.
And still, in the light of recent events, Betfred has just announced a multi-year deal with Sky Sports that will allow its network of betting shops to air content from all channels of the group via the Betfred TV channel. The deal is expected to take effect later this month.
- Author
Olivia Cole
