BetFred First Major Annual Losses

The land and online gambling group, Betfred, has experienced a decrease in the incoming profit for the year that came to a close in September 2017. The profit decreased from GBP 32.4 million as compared to the previous year to a loss of GBP 13.4 million; the company blamed their decrease to goodwill deterioration attributed to increasing costs, digital assets and higher taxation.

 

Despite a 9.6 percent increase in revenue that rose up to GBP 634.5 million and up to 3 percent earnings at 83.3 million, the company still experienced a loss. Mostly from the retailers, the group turnover was up to 17.5 % at GBP 12.7 billion.

 

An analysis made on the Betfred group estimated the groups’ online revenue at GBP ninety million on a three percent yearly increment from growing player base. None of the figures had increased by then. They also realized that eighty-three percent of what the group was earning originated from retail operations. The United Kingdom government decided to reduce the highest limit Fixed Odds Betting terminal stakes from GBP one hundred up to GBP by the year 2020; this shall have an effect that may provoke changes in the groups’ earnings. The director of the group requested the government to reconsider this decision for it might lead to huge losses across the industry.

 

On 25th of June 2018, the Betfred group again reported the same operating loss of £13.4m despite an increase in earnings and revenue. The revenue during the twelve months to September 24, 2017, was still at £634.5m with an increase of 9.6 percent as compared to the previous year. The earnings also had improved by the same three percent yearly up to £83.3m.

 

The Betfred retail total gambling turnover, Tote, and online businesses rose up to 17.5 percent to £12.7bn. Regulus partners commented that the online revenue of the Betfred group increased by three percent on a yearly basis to £90m; that of Tote increased by twelve percent to £32.4m. These partners also suggested that the Betfred might be set for more challenges in the coming future because of the regulation modifications on fixed odds betting terminals (FOBTs).

 

The Betfred group experienced an eight-figure loss in its treasury year despite a good revenue gain. The improved revenue came largely through the group’s 2016 October addition of three hundred and twenty-two Ladbrokes Coral betting shops. The company’s Totepoool business also signed a commingling deal with the Hong Kong Jockey Club plus a non-specified rise in their online customer base.

 

Predictably, the anti-gambling suspects in the United Kingdom’s media played up with the fact the founder of Betfred, Fred Done, decided to take a £10.2m annual dividend just like the previous year. These kinds of media noted that Betfred had announced the previous week that there was a possibility of closing up to nine hundred betting shops and fire up to four thousand, five hundred staff members. This would occur if all the government would execute their plan of reducing the highest limit stake on fixed- odds betting terminals (FOBTs) from £100 up to just £2. Lucky enough the government recently announced that the FOBTs stake reduction would not take place till the year 2020.

 

The Regulus partners also realized that the 83 percent earnings from the retailers put the company in a particularly hard position given the current government stance. As a result, they suggested that Betfred’s core business would require some structural change.

 

Recently the director of Betfred gave a decree that his company’s association with racing had been broken after several years of dis-unity between the racing and the betting industry. He also reported a deal with Alizeti Capital as the very first page of their decision to disrobe its Tote holdings.

 

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One thought on “BetFred First Major Annual Losses

  1. Nolan Reed Reply

    awtz, this is one of betfred’s big loss. hopefully they can recover their losses. best wishes for them. awesome writing. thanks

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