Betfred reports losses of over £40m

UK bookmaker Betfred has reported operating losses of over £40m, which they are saying is due to the crackdown on the fixed odds betting terminals (FOBT’S).

Betfred’s exceptional costs for the financial year ending in September 2018 were said to be around £119.6 million which consisted of a reduction in the assets of the companies betting shops due to the maximum bet being reduced from £100 down to £2 on the FOBT’s.

Betfred had already reported an operating loss in the previous year which amounted to £13.4m.

Fred Done the owner of Betfred, who have 1,650 betting shops throughout the country has stated that there could be about 500 of these shop closing down.

Betfred’s turnover increased by 14.7% to £727.6m, and the EBITDA increased by43.3% to £119.4m, which related to their purchase of 322 rival betting shops from Ladbrokes and Coral, as well as an increase in the amount of registrations of online players.

Betfred were shown to have paid taxes of £155m, which related to betting duties of £55m, gaming machine charges of £87m and a UK racing’s statutory betting levy of £13m.

The company also received the amount of £20m from Alizeti relating to a 25% share in the Tote.

The 2018 year has also seen Betfreds’ exclusive 7 year licence which allowed them to offer their customers pool betting services come to an end.