Betfred's profits reach $21.9M in 2022, driven by reopening of UK betting shops

UK-based sports betting operator Betfred has reported a substantial increase in profits and customer activity. The gambling company made profits after tax of nearly £20 million ($21.9 million) in the year ending on 25 September 2022, up from just over £5 million ($9.8 million) the year before. This surge is largely attributed to the unrestricted reopening of its high street betting shops following 2021’s lockdown restrictions. 

Gambling shops were among the last to reopen in the UK during the pandemic. However, since then, their sales have risen sharply. According to the newly published accounts at Companies House, Betfred's turnover grew by nearly £200 million ($219.3) to reach £723 million ($793 million).

Betfred customers wagered £8.8 billion ($9.6 billion) in 2022, a sharp increase on nearly £7 billion ($7.6 billion) the year before. However, despite this growth, these figures remain below the £10.1 billion ($11.07 billion) wagered in the 2018/2019 period, before the onset of the global pandemic. 

Accounts show that the Done Family, Betfred's owners, withdrew a £51 million dividend from the company in November 2021. The accounts also revealed a £2.9 million ($3.06 million) payment made to the UK’s Gambling Commission (UKGC) in settlement over failures related to customer care and anti-money laundering (AML) controls.

Corporate expenses witnessed an increase as Betfred paid a higher machine-gaming duty of £54 million ($59.2 million) in 2022, compared to £31 million ($34 million) in the previous year.

The annual accounts also showed that Betfred closed 51 shops during the period, leaving it with a network of 1,419 locations. In 2019, the group had 1,578 shops. Betfred said it would continue to review loss-making shops and consider them for closure.

Moving into the 2022/2023 fiscal year, Betfred's leadership noted that units are making contingencies for an expected rise in operational costs related to stricter compliance and regulations. Beyond the UK, the company continues seeking expansion opportunities in North American and South African markets.