Profit statements

Betfred’s 2021 profits decimated by betting store closures

Betfred Group Limited has filed its annual report and consolidated financial statements for the period ended 26 September 2021, to reveal the significant impact of the coronavirus-related closures on its betting shops.

Key performance indicators

For the 12 months ended September 26, 2021, Betfred generated £6.999 billion ($8.398 billion) in wagered amounts to register an 8% increase from £6.483 billion ($7.779 billion). dollars) recognized in the prior comparable period. During the reporting period, Betfred operated through licensed betting shops and on the internet.

Amounts wagered generated revenue of £526m ($631m), slightly up from the £525m ($630m) the Gambling Group accounted for until September 26 2020, despite the higher total betting amount. The relatively identical turnover suggests that the operator had less favorable sports results compared to the previous comparable period.

Gross profit for the period was £412 million ($494 million), up slightly from £410 million ($492 million) in the previous 12-month period, which implies that the cost of sales remained relatively unchanged.

EBITDA before exceptional items was £46.5 million ($55.8 million), showing a 31% increase from £35.3 million ($42.2 million ) of the prior comparable period, as the decline in betting shops EBITDA was more than offset by Betfred’s online operations.

Operating profit for the year was £26.6 million ($31.9 million), almost four times lower than the £104.5 million ($125.4 million dollars) in 2020 despite the insignificant exceptional operating credit of £8 million ($9.6 million) compared to £99 million ($118.8 million) in 2020.

Credit for exceptional items in 2021 included a net credit of £17.8 million ($21.4 million) related to impairments and provisions, a charge of £7.4 million ($8.9 million) dollars) related to the provision of a related party loan and a charge of £3.6 million ($4.3 million) of costs incurred in connection with a potential acquisition that did not materialized.

In 2020, exceptional items included a £97.7 million credit from HMRC due to excess VAT paid on Fixed Odds Betting (FOBT) terminals between 2005 and 2013, a net credit of £4.1 million £4.9 million related to impairments and provisions, as well as a charge of £2.6 million ($3.1 million) related to the third party loan write-off.

Betfred’s after-tax profit was just £5.3m ($6.4m), wiping out nearly £160m ($192m) of the £165m ($198m) million) reported in 2020, revealing the true nature of the impact of the closures on its retail betting stores from November 2020 to April 2021.

4% of betting shops ceased operations

As of September 26, 2021, Betfred operated 1,470 high street betting shops, down from 1,529 the previous year, as the company continuously reviews shops incurring losses and closes those with no prospect of improvement.

During the reporting period, Betfred launched operations in Arizona to expand its presence from Pennsylvania, Nevada, Iowa, Louisiana and Colorado.

On the M&A front, Betfred has acquired 70% of South African sports betting company betting World (Pty) Ltd.