Despite nearly a 3% increase in total revenue, bet365’s legal sports betting earnings dropped 2% from March 2021 to March 2022.
According to an official financial review released by bet365, revenue grew from $3.35 billion in 2021 to $3.41 billion in 2022 — but while gaming revenue increased by 25%, profits fell from $545 million in the previous cycle... to $60 million in the latest financially reported year.
The company’s expansion into new markets, and pouring more money into enhancing its product, are pointed to as the biggest reasons why the online betting site saw an almost 90% drop in profit from the previous year.
This includes offsetting margins in sports betting and administration costs of over $385 million from what the report attributed to "increasing brand awareness in new markets."
The company expanded its marking in several countries, including the U.S. and Canada, where bet365 is now currently active in New Jersey, Colorado, Ohio, and Ontario. It also invested in technology to introduce new golf visuals, a bet builder, more live streaming of games, and increased bet boost offerings (across several sports) that mitigated the sports betting gains.
Salary reductions
Those online improvements caused bet365 to raise its staff from 5,442 to 6,092 workers. To offset some of that cost, bet365’s directors accepted reduced pay, including CEO Denise Coates.
The company’s founder and majority shareholder took a 16.5% pay cut, which was nearly $68 million. Despite that, she still hauled in a reported $257.6 million from March 2021 to March 2022.
This kept Coates as the highest-paid executive in England — and one of the wealthiest women in the world.
Future enhancements
Enhancing technology on its trading online platform and refining its product will continue to be at the forefront for bet365, the company says.
It’s also “committed to delivering a safe environment for its customers” by making improvements in the Early Risk Detection System, which allows bet365 to identify and interact with customers who are “at risk, or experiencing, harm.”
Revenue for the next cycle is expected to rise as branding and technology take off. Additionally, the World Cup — which is one of the most anticipated sporting events throughout the globe — should also help bet365 earn back some of the sports betting profits lost from the previous year.
