Betfred’s 2021 Profit Decimated by Betting Shop Closures

Betfred Group Restricted filed its annual report and consolidated monetary statements for the interval ended September 26, 2021, to disclose the numerous impression of the coronavirus-related closures on its betting outlets.

Key Efficiency Indicators

For the 12 months ended September 26, 2021, Betfred generated £6,999 billion ($8,398 billion) in quantities wagered to register a rise of 8% as in comparison with the £6,483 billion ($7,779 billion) accounted within the earlier comparable interval. Through the reported interval, Betfred operated by way of Licensed Betting Places of work and on the web.

The quantities wagered generated a turnover of £526 million ($631 million), marginally up from the £525 million ($630 million) the Playing group accounted for as much as September 26, 2020, regardless of the upper quantity of complete wagers. The comparatively similar turnover suggests the operator had much less favorable sporting outcomes in comparison with the earlier comparable interval.

Gross revenue for the interval amounted to £412 million ($494 million), marginally up from £410 million ($492 million) within the earlier 12-month interval, implying that the prices of gross sales remained comparatively unchanged.

EBITDA earlier than distinctive gadgets was £46.5 million ($55.8 million), posting a rise of 31% from £35.3 million ($42.2 million) within the earlier comparable interval because the lower in EBITDA from betting outlets was greater than offset by Betfred’s on-line operations.

Working revenue for the yr was £26.6 million ($31.9 million), almost 4 instances decrease in comparison with £104.5 million ($125.4 million) in 2020 regardless of the insignificant working distinctive credit score of £8 million ($9.6 million) as in comparison with £99 million ($118.8 million) in 2020.

Distinctive gadgets credit score in 2021 comprised a web credit score of £17.8 million ($21.4 million) associated to impairments and provisions, a £7.4 million ($8.9 million) cost associated to the availability of a mortgage to a associated celebration, and a £3.6 million ($4.3 million) in prices incurred from a possible acquisition which didn’t materialize.

In 2020, distinctive gadgets included a credit score of £97.7 million from the HMRC on account of extra VAT paid on mounted odds betting terminals (FOBTs) between 2005 and 2013, a web credit score of £4.1 million ($4.9 million) associated to impairments and provisions, in addition to a £2.6 million ($3.1 million) cost from the write off of the third celebration mortgage.

Betfred’s revenue after tax was a mere £5.3 million ($6.4 million) erasing almost £160 million ($192 million) from £165 million ($198 million) reported in 2020, revealing the true nature of the impression of closures on its retail betting outlets from November 2020 to April 2021.

4% of Betting Retailers Discontinued

As of September 26, 2021, Betfred operated 1,470 high-street betting outlets, down from 1,529 within the yr earlier than because the enterprise is frequently reviewing outlets incurring losses and shutting these which don’t have any perspective of enchancment.

Through the reported interval, Betfred launched operations in Arizona to develop its presence from Pennsylvania, Nevada, Iowa, Louisiana, and Colorado.

On the M&A entrance, Betfred acquired 70% of the South African sports activities betting enterprise betting World (Pty) Ltd.

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