Bet365 Profits Up 35% To £148m In 2012June 25, 2013 1:48 pm
British online gambling operator Bet365 has released its financial figures for the year ending March 31, 2013, revealing an impressive 35% increase in profits to £148m compared to the previous year. However, during the year Bet365 accrued losses on account of its controlling interest in struggling Premier League football club Stoke City, without which the company’s profits would have risen by 54% to £179m.
In actual fact, Stoke City’s losses had increased exponentially from £5.8m in 2011 to £30.9m in 2012, primarily due to the company spending extra money propping up its playing squad as it sought to maintain its Premier League status. Not surprisingly, Bet365 now seems to be reassessing its relationship with the club, with Bet365 CEO Denise Coates (photo) stating:
“[Bet365] is committed – following the new broadcast deal and the introduction of financial fair-play rules – to reduce the club’s reliance on the group and, over the medium term, to make it self-sufficient.”
During Bet365’s fiscal year, online betting turnover approached £20 billion, up from £12.4b a year earlier, while total revenue was up by 44%. Outside of sports betting, poker revenue increased by 10%, bingo by 25% and casino by 35%. In addition, active users hit 2 million and net depositors reached 1.3m. The company also had to shell out £31m in corporation tax for the year as, unlike many of its online competitors, Bet365 has kept its headquarters in the UK and not sought overseas tax havens.
A little over half of the private company’s shares are owned by Bet365 founder Denise Coates, and last year, Denise received £5.4m in pay and bonuses as well as half the total £15m in dividends disbursed. Denise Coates’ father Peter and brother John own much of the remaining shares in the company.