Bet365 has revealed the financial impact of its expansion into the Americas, declaring that its administrative costs increased by $380.5m year-over-year as operating profits reduced by 94.5%.
Publishing its full-year performance for FY 2021/22 (March 2021 – March 2022) to the UK Companies House, the British-based private gambling group revealed total revenues of $3.41bn, an increase of 2% on corresponding 2021 figures of $3.35bn.
Sports betting revenue dipped by 2% throughout the trading period but this was more than offset by a substantial 25% increase in gaming revenues, with the betting and gaming segment of the business contributing $3.39bn of revenue during the period.
Meanwhile, the total amount of active customers increased by 48%, compared to 13% in the year previous.
This increase in active users has stemmed from the British firm’s intent to expand geographically; bet365 launched in New Jersey back in 2020, whilst it has later launched in Colorado (September 2022) and Ontario (April 2022). The firm also has a Latin American presence, operating in Argentina via Buenos Aires.
Yet it is this same geographic expansion that has helped to deplete profits, with the firm’s leadership stating that administrative costs, which increased by $380.5m, was impacted by ‘raising brand awareness in new markets alongside continued investment in IT infrastructure and technology’.
A recruitment drive also saw bet365’s payroll increase from 5443 employees in March 2021 to 6,092 in March 2022, as it sought to gain staff to support new launches.
The firm also contributed $119.1m to the Denise Coates Foundation during 2021/22, which is set up for charitable giving in the name of the group’s co-founder and CEO.
From gambling operations, bet365 made a profit of $90.6m, compared to $625.1m in FY2020/21. However, the group also operates EFL Championship soccer club Stoke City’s stadium, the bet365 Stadium, which contributed $31.2m.
Whilst revenue remained relatively flat and costs continued to rise, bet365’s operating profit stood at $18.3m, compared to $339.7m in FY 2020/21.
Looking ahead, bet365 aims to continue its geographic expansion, noting that ‘the changing worldwide gambling and leisure industries are likely to present opportunities for enhancing the group’s presence worldwide.’