Betfred full-year revenues up 15% to £728m
Operator reports second consecutive operating loss despite growth due to an impairment to the retail business
Betfred recorded a 15% rise in group revenues to £728m for the year ended 30 September 2018, according to new documents filed with Companies House.
The firm highlighted an increased number of online customers and the expansion of its retail estate in the preceding year as reasons behind the growth.
Total amounts wagered with the operator climbed 6.4% to £13.5bn, with the firm enjoying a trading margin of 5.4%.
EBITDA, before operating exceptional costs was up 43% to £119m, but the business reported an operating loss for the year of £41m due to a goodwill impairment to the retail business following the cap on FOBT stakes.
Betfred also made an operating loss in 2017 after a near £40m impairment to the digital business.
As of 30 September Betfred had 1,650 shops, down 16 from the year before, with the firm saying loss-making shops were “constantly reviewed”.
Using William Hill’s average revenue per shop as a guide, Betfred’s retails revenues were approximately £642m with online therefore around £85m.
The company said the FOBT changes would force it to “remodel” its retail estate but said the impact on customer behaviour would not be known for a “number of years”.
Looking ahead, the firm said its strategy for 2019 was centred on reviewing its retail estate and the online business, with a “tight control of overheads and continued close management of trading results”.
Betfred has been investing in its online product in recent months, launching a new desktop version of Betfred.com last week following a six-month project with tech firm Degree 53.
The operator also today became the first high street bookmaker to roll out the full Racing Post Sport content package across its website and mobile app to help engage customers across an array of different sports.
“Our online customers now have access to stat-rich betting tips across the biggest events spanning the full sporting calendar,” said Lewis McMillan, Betfred’s head of digital product.
“This product breaks through the humdrum approach of delivering raw sports data to customers and blends data with expert opinion to offer a truly compelling customer proposition.”