Betfred See Losses Due to Taxes and Lucky Punters
Published on by Andrew Mills
UK based bookmakers Betfred have seen a net loss in its most recent fiscal year thanks in part to fortunate punters and increased taxes.After having made a £31.5 million operating profit in the 78 weeks running up until the end of September 2014, Betfred then saw net losses of £76.7 million over the next 12 months.
Why the losses?
All UK based online and retail betting operators have seen losses as a result of tax changes. The new point of consumption tax, combined with the rise in Machine Games Duty has caused, Betfred claim, a £16.3 million drop in annual earnings.Betfred saw £87.3 million worth of exceptional items, including a goodwill impairment in December 2014 following the closure of their Australian arm, which was unsuccessful due to the “overpopulated” Aussie market.
Unfavourable results
Weekly turnover for Betfred raised by approximately £30 million, to £200.7 million per week, but this was cancelled out by unfavourable sporting and racing results.These results took their toll on hold percentages across the board, but it has been claimed that Betfred and Totesport felt it the most.With Fred Done, head of Betfred, continuing to stoically refuse to sign up to UK racing’s new Authorised Betting Partner Scheme, Betfred could see a fallout from the racing world when their monopoly on the tote comes to an end in 2018.
Refusal to sign up to the Authorised Betting Partner Scheme
Despite the company making sure it is understood that they have gone above and beyond the call of duty, which was up to £13.3 million, well in excess of Betfred’s £9 million commitment, there is still a definite possibility that vengeful figures within the racing community may pursue other avenues once the opportunity becomes available, due to Betfred’s refusal to sign up to the Authorised Betting Partner Scheme.