Profits soar as bet365 toasts significant growth

Leading online bookmaker bet365 has confirmed significant growth in its full-year accounts  (12-month period to March 2018), recording a 26% increase in betting and gaming revenue to £2.7 billion.

The operator continued to benefit from its high-level sportsbook offering, specifically in-play betting which accounted for 77 per cent of its sports betting revenue, as well as this, mobile betting revenue rose 29% during the year

Operating profits for the firm elevated 33 per cent to £682.2m, whilst the firm reinforced its strong financial stature with £1.8 billion in cash on its balance sheet and a further £500 million of investments, with no debt.

EBITDA rose by 30% to £722 million (post software development), staff costs increased by 27% to £745 million (with 4236 employees, +10%) and software development rose 26% to £34 million.

Putting these results into context, Regulus Partners described how “bet365 has added roughly the equivalent of William Hill’s digital business in one year’s growth and is more than double the size of PPB’s digital business (including Australia) in revenue terms.

“Further, bet365’s reporting period is an ‘off-year’, with no Euros or World Cup, suggesting a return to strong growth in actives post period end, in our view.”

Additionally, the Empire partnership will allow bet365 to expand into the New York sports betting market, as the venue seeks to utilise the operator’s renowned sportsbook offering to thrive as the market potentially opens up in 2019.

According to market estimates by Eilers & Krejcik Gaming LLC, the New York State sports wagering market is expected to be the single largest market jurisdiction for sports betting in the United States other than California, with projections for more than $1 billion in annual revenues from sports betting within five years of legalisation.

The firm’s position as a leading UK operator has since been affirmed with the announcement of a recent deal with Empire Resorts to secure a New York sports betting licence, including an equity investment of up to $50 million.