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Betfreds Declining Profits
BETFRED PROFITS DECLINE
Fiscal 2015 plagued by increases taxation and losses to punters.
The UK online and land gambling group Betfred has posted its results for fiscal 2015 ended September 27 2015, reporting that increased taxation and some pro-punter sports betting results have put a dent in its performance.
The company reported an operating loss of GBP 76.7 million, a substantial decline year-on-year from the profit of GBP 31.5 million achieved in the preceding year, although that included an additional 26 weeks, and on a truly comparative like-for-like basis earnings at GBP 56.5 million were up 7.5 percent.
The UKs 15 percent point-of-consumption tax on internet gaming did much of the damage, along with higher taxes and more restrictions on FOBTs in the retail division, although punter victories in betting events also went against the bookmaker. The company claims that taxation alone chopped GBP 16.3 million off 2015 earnings.
Further negative impacts were incurred through the closure at the end of 2014 of Betfreds Australian online venture, which is listed as a component in the companys GBP 87.3 million of exceptional items - a ten-fold increase.
Notable among the financial numbers was the GBP 13.3 million cut Betfred paid to the British horseracing industry - up GBP 500,000 on the preceding year and well ahead of its voluntary commitment of GBP 9 million.
Betfred is still a force to be reckoned with; turnover is up almost GBP 30 million y-o-y at GBP 200.7 million a week, but some cost-cutting has taken place in the form of the Wigan support centre closure, with the expense of GBP 469,000 in severance pay to employees.
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