Five key points from bet365's annual results

Yesterday bet365 released its 2015 full-year results which once again underlined the operator’s credentials as the one firm every other must beat.

While the trajectory of growth wasn’t quite as impressive as the 12 months prior, a 15% rise in revenues and a 27% rise in operating profit is still an impressive achievement for a firm of its size.

With mega-mergers afoot in the industry, bet365, led by joint-CEO Denise Coates, could soon find itself coming up against bigger and stronger beasts in some of its core markets, such as the UK, Italy and Spain.

Here eGaming Review takes a closer look at some of the facts and figures released by the operator for the year ended 29 March.

1. Standing tall over rivals. The sheer size of the bet365 business shouldn’t be underestimated. Revenues of some £1.47bn is more than the combined 2014 revenues of three of its nearest rivals in William Hill (£527.4m), Paddy Power (£409.5m) and Betfair (£476.5m – year ended 30 April). A combined Paddy Power Betfair, which is thought could be a major threat to bet365, would still find itself some way behind on revenue terms based on most recent numbers.

2. King of sports. The amounts wagered at bet365 grew by 33% over the year to an eye-watering £35bn. To put that into some perspective, William Hill’s 2014 report showed online wagering turnover of £4.9bn. The vast sum and the relative profits illustrates the stack it high, sell it cheap strategy employed by bet365 and why regions levying a turnover tax are unfavourable towards the operator.

3. Cashing in on in-play. One key reason behind the operator’s vast turnover figure will be its in-play figures. Three quarters of all bets placed with the bookie were through its in-play product which is widely considered to be the best in the industry. The firm streams a vast amount of tennis and football, two sports which lend themselves to in-play betting, and it was also the first to launch partial cash-out.

4. Slowed growth. While bet365 grew revenues by 15% over the course of its financial year, William Hill (18%), Paddy Power (19%) and Betfair (21%) all grew at a slightly faster rate. William Hill (33%) and Paddy Power (30%) also produced a better revenue to operating profit conversion rate than bet365 (28%), whose entry into the regulated Italian market and its expensive taxation regime will also have hit the bottom line, as will its loss-making Australian arm.

5. Still in the dark. While the results offer a broad overall picture of the business, the firm didn’t provide any detail on a number of areas including casino, which is understood to be around 20% of its UK business. The impact of the new UK Point of Consumption tax is also unclear. Bet365 will have, from December 2014, had to pay tax on gaming revenues from its UK customers, but was relieved of paying taxes from non-UK sportsbook customers. The result will have certainly been a net benefit to the firm.