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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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Gambling News :

SquwaKa To Enter sports betting sector - Football digital content platform SquwaKa will be entering the sports betting sector with the launch of a new FSB Technology built and powered sports betting service to sit alongside its fantasy sports offer.

Softswiss in game deal with Booming Games - Platform and white label provider SoftSwiss has launched a portfolio of 50 plus Booming Games titles following a partnership deal announced this week.

RaceBets Acquired by Betsson - Niche operator #RaceBets complements #Betsson offering with a proprietary horse racing product and an experienced horse betting trading team.

Playtech buys back 780,000 shares - Playtech's advisory earlier this week that it is to embark on a Euro 50 million share re-purchase initiative has been quickly followed by a notification from the company that it has bought an initial tranche of 780,000 shares at prices ranging between 797.75 and 816.63.

Cash In Roulette - The relatively new online gambling games developer Be The House, has announced that it is to launch its unique Cash In Roulette product with William Hill Online.

EveryMatrix in game deal with Endorphina - #EveryMatrix Prague-based online slot developer Endorphina has found a new outlet for its games, signing a content supply agreement with white label provider EveryMatrix.

2017 Turbo Championship of Online Poker Schedule - Pokerstars has announced the schedule for the 2017 Turbo Championship of Online Poker (TCOOP), which includes some changes following player feedback.

Divine Fortune Slot Launches - NetEnt has joined the end-of-year rush to get new games out for the holiday season, launching a Greek mythology-themed online slot titled Divine Fortune.

Jack Lam Does Not Have a Cagayan Gambling License - Aguirre last week accused Lam of attempting to bribe him and Pagcor chief Andrea Domingo following the mass arrests of 1,316 Chinese workers at Lam's Fontana Park premises in the Clark Freeport on immigration charges.

Japan Gambling Bill Gathering Momentum - Japan's gambling liberalization bill allowing land casinos to set up and operate has achieved unexpected progress since passing a Lower House committee of the Diet earlier this week.

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