bet365 Banks £2 Billion Following Upturn in Betting Activity

Bet365 banked more than £2 billion in the last 12 months thanks to increased mobile activity and Brexit’s impact on the pound.

bet365 Denise Coates.

bet365 chief executive Denise Coates has said that the company will continue to pursue new opportunities following a positive financial performance. (Image: telegraph.co.uk)

Following another year of growth, bet365 reported a £514 million uptick in pre-tax profits for an annual operating profit return of £503 million. The 15 percent increase in operating revenue was helped by a 27 percent upswing in sports betting activity as well as the number of active customers jumping up by 35 percent.

Rises and Falls Helps bet365

In line with recent developments, the mobile arm of bet365 continued to perform well. With in-play betting continuing to prove the company’s strongest asset (72 percent of sports betting revenue), mobile activity remained the most popular betting medium and, in turn, delivered revenue growth of 61 percent.

However, while the increase in betting activity has been the main driver of success, the operator’s report also notes the decrease in the value of the pound as a contributing factor. With Britain’s impending break from Europe continuing to drive down the value of the pound against the Euro, bet365 has seen a better yield from countries such as Spain and Italy.

Off the back of another positive set of financial results, joint chief executive Denise Coates said that the company will continue to pursue new opportunities in regulated markets.

“Given the group’s experience in regulated markets it believes it is well placed to benefit long-term in those countries where sensible regulation is adopted,” Coates said in the latest report.

Regulated Markets Hold the Key to bet365’s Next Moves

This focus on regulated markets is something that all major operators in the UK are now taking more seriously. With GVC Holdings recently announcing that it was selling its Turkish asset to reduce its presence in grey markets and secure a high-profile merger, other operators will want to follow suit.

At present, bet365 holds licences in regulated markets such as the UK, Spain and Italy. But, with regulations across Europe constantly changing, it wants to keep pace and apply for new licences as and when they become available.

This strategy will not only ensure bet365 remains one of the largest operators in the industry, but it could open the doors for future merger talks. Unlike its peers such as Paddy Power, Betfair, Ladbrokes and Coral, bet365 has resisted the temptation to partner up with another operator. However, as the industry continues to evolve, this could be added to the agenda in the future.

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