Betfred wagers rise to £7bn in 2020-21 despite lockdown effects
In figures released for the 12 months to 26 September 2021, the online and retail operator accepted £6.99bn in wagers which was up 7.87% on the £6.48bn posted in September 2020.
It said that on an annualised gross basis, amounts wagered, revenue and pre-exceptional EBITDA in the group’s licensed betting offices (LBOs) decreased due to Covid-19, as a result of the temporary closure of shops from November 2020 to April 2021. Revenues in the high street business slumped from £301.0m to £244.0m. It closed 59 LBOs, ending the period with 1,470 facilities.
While not giving financial details concerning its online business, it said amounts wagered, turnover and pre-exceptional EBITDA all increased, which led to the overall rise in wagers.
However, the figure was still well down on pre-pandemic times, with £10.10bn wagered in the year to September 2019.
Income during the period was also aided by entry in another US state, with another impact being the acquisition of a 70% share in South African betting business Betting World.
Betfred posted revenue of £525.96m, which was flat compared to 2020, while the group made a gross profit of £412.59m compared to £410.23m in 2020.
Operating profit of £26.6m was significantly down from 2019-20 although this can be attributed to a credit of £97.7m following a successful VAT claim rebate during the prior period. The 2021 figure included a credit to exceptional costs of £8.0m. Administrative expenses increased from £436.0m to £444.0m.
The group announced EBITDA of £46.46m during the period, which was up 31.0% on the £35.31m from the prior period.
Betfred paid a dividend of £50.7m in November 2021 to its shareholders.
Betfred Sports is currently a licensed operator in Iowa, Pennsylvania, Colorado, Arizona and Louisiana, with businesses awaiting regulatory approval in Nevada, Washington and Maryland.