UK-based bookmaker, Bet365 revealed its revenues for FY 2023 that ended in March of last year were $4.3 billion but sustained losses of $77.6 million.
Booming Business
Reports from last fiscal year show that Bet365 generated revenues of over $4.31 billion which is up 19% over the previous year. The metrics revealed a 15% increase in sports betting revenue while gaming revenue spiked 31% during 2022-23. There was also a 29% increase in new customers, which fell short of the 48% of new signups the previous year.
However, the company experienced $77.6 million in losses, but investments in new technology and a “quality over quantity” betting experience will ultimately prove advantageous over the long run, according to Bet365 co-founder Denise Coates.
Upgrades to the company’s ‘Bet Builder’ and ‘Bet Boost’ products as well as a more expansive betting menu cost the company money, but both offer a more enhanced betting experience for Bet365’s customers. Increased investment into its Games Recommendation Engine (GRE) which is augmented by localized and focused gaming in individual markets to personalize the experience.
Live Casino & Expansion
The company’s CEO also noted that live casino gaming is a sector that is vastly increasing, saying, “Live casino has been a strategic priority over the last three years and, as such, we have expanded our dedicated offering and created a number of bespoke and localized products tailored to specific markets.”
Rolling out Bet365’s platform in new markets is critical for the brand’s international recognition and its growth in the years ahead. Currently, Bet365 can be found in the UK, Australia, Germany, Italy, Sweden, the Netherlands, and Ontario, Canada, as well as the following U.S. markets:
Coates spoke about the company’s increasingly sprawling global expansion when she stated, “The group will continue its long-standing policy of pursuing licenses in regulated markets and, given its experience, believes it is well placed to benefit long-term in those countries where commercially viable regulation is adopted. As part of this process, the group works with regulators through ongoing reviews.”
Room to Grow
Paul Leyland, an analyst at Regulus Partners, said, “During the first stage of the pandemic, existing customers had more time and more money to bet online, so Bet365 benefited from increasing gross margins without much cost increase.”
But because of the emergence of increased competition in the post-pandemic global environment, Bet365 “had to increase marketing budgets to win lower-spending users in emerging markets”.
“Bet365’s ability to leverage its historical in-play strength and 20 years of brand investment probably has several more years of growth and resilience to deliver – assuming no major regulatory issues – especially given the scale of platform investment,” Regulus Partners said.
As Bet365 continues to compete in the ferociously competitive U.S. betting market, it must offer something that sets it apart from the FanDuels and DraftKings of the world.
“Whether or not Bet365 deploys its balance sheet for regenerative M&A or continues to be a reliable but less threatening cash machine for its owners then becomes a very big question for the gambling industry as a whole,” Regulus Partners said.
