A prominent UK bookmaker, Betfred, experienced a recent setback. Their most recent fiscal statement revealed a financial deficit for the previous year.
The loss was substantial, amounting to £76.7 million (approximately $93 million) in operational shortfalls for the year concluding on September 27, 2015. This followed a respectable profit of £31.5 million the preceding year.
What contributed to this downturn? Betfred cites several factors. Firstly, a significant one-off expense of £83.7 million impacted their finances. Additionally, the UK government’s implementation of a new tax on online wagering in December 2014 further eroded their earnings. This 15% levy cut into their profitability.
Furthermore, their venture into the Australian market with Betfreds proved unsuccessful. Its closure in December 2014 negatively affected their overall financial standing.
Despite these challenges, Betfred maintains an optimistic outlook. They emphasize their expanding clientele and the increasing average wager amount. The company continues to invest significantly in their UK retail locations, online platforms such as betfred.com and totesport.com, and their horse racing endeavors.
Whether these strategies will suffice to restore Betfred’s profitability remains to be seen.
Although Betfred experienced a considerable rise in annual income, their fiscal standing suffered due to a confluence of difficulties. Increased UK gaming levies and a series of adverse sporting outcomes, especially in equestrian contests, compressed their earnings.
This negatively impacted their digital platforms, betfred.com and totesport.com, the most, resulting in a steep drop in gains.
On a positive note, Betfred secured a long-term agreement with Sky Sports, obtaining the transmission rights for all seven Sky Sports networks across their 1360 wagering establishments within the UK.”
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