SBC News Increased costs and taxes see Betfred 'in the red' for 2015

Increased costs and taxes see Betfred ‘in the red’ for 2015

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Despite increasing corporate revenues to £10 billion, UK bookmaker Betfred has posted an operating loss of £76.6 million (52-week period ending 27 September 2015).

Filing its annual return with UK Companies House the Manchester-based operator reported that its financial performance had been impacted by increased gambling taxes which lowered operating margins. Furthermore, the bookmaker like its industry competitors was hit by adverse sporting results during the filed period.

Betfred would detail that its ‘exceptional costs’ had been driven up ten-fold, from £7.7 million in 2014 to a staggering £84 million in 2015.

As expected a higher tax contribution due to UK POC charges combined with an additional 5% increase in gambling machine duty, would see Betfred pay £16.3 million in corporate taxes for 2015.

The company incurred further costs, due to the closure of its Australian business and a one-off impairment of goodwill in respect of the acquisition of its digital business.

Filing a governance note with its Companies House account, Betfred would comment on 2015 performance

“On an annualised gross basis, turnover for the period has significantly increased across the business as a result of an increased number of customers and an increased stake per bet. This demonstrates the group’s commitment and continued investment in both the UK real estate, the online presence through Betfred.com and totesport.com, and through Totepool betting on UK racecourses and through internal partners.”

“Despite the significant increase in annualised turnover, the group’s results have been impacted by increased UK gaming taxes and lower margins as a result of a series of unfavourable results. The online business through Betfred.com and totesport.com has felt the most significant impact of these challenges with a significant decline in earnings.”

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