Bet365 returns to profitability in Australia
Online bookmaker beats off Covid headwinds to record all-time-high annual revenue of A$190.3m
Bet365 has returned to profitability in Australia after reporting record-high revenue of A$190.3m (£101m) for the financial year ended 28 March 2021.
The online operator posted profit before income tax of A$1.5m (£796k), up substantially from the A$19.9m (£10.6m) loss recorded a year prior.
Overall revenue from the company’s Australian sports betting activities increased to an all-time high of A$190.3m, rising 29% from the A$147.2m achieved in the prior corresponding period.
Covid-19 caused the cancellation of several major sporting events held in Australia during the year.
However, domestic racing largely continued unaffected and sporting events restarted quicker than in most territories, albeit behind closed-doors.
As a result, bet365 said its financial performance was not noticeably affected by the pandemic.
The operator revealed that “significant” marketing spend was accrued in the period as the company continued to develop its profile in the Australian market, which is currently dominated by Tabcorp.
Annual advertising spend was listed at A$37m as part of the report, while the operator forked out out A$71m on government taxes and levies.
Looking to the future, the directors said company revenue would continue to grow while sustainable profitability would be delivered from Australia to the wider group.
“The period saw the worst of the Covid-19 restrictions and lockdowns, with sport impacted across the world,” said bet365 in the financial report obtained by EGR.
“The directors are delighted with how the company responded and adapted to these challenging circumstances.
“We continued to operate the business successfully throughout the various lockdowns with business continuity plans enacted, resulting in staff being able to work from home, while significant investment was also made to ensure the office environments were Covid-secure.”
Bet365 obtained an Australian bookmaking licence in February 2011. It is headquartered in the country’s Northern Territory and began taking bets in 2012.
Before the launch, the company spent months researching its competitors and the wider Australian market before feeding those conclusions into product development.