British origin Omnichannel Betfred has posted record Full Year 2023 revenue of £577 million (US$747.71m), thanks to its astute acquisition of a controlling stake in South African iGaming operator LottoStar.
And Betfred’s EBITDA rose a massive 72 percent, year-on-year, to £117 million (US$151.61m) in its FY23, the 12-months ending October 2023.
A major driver of Betfred success was the company buying a 51 percent, £184 million (US$238.44m) tranche of LottoStar–South Africa’s biggest online gambling outfit–in June 2022.
The acquisition contributed £134 million (US$173.64m) in revenue and £42 million (US$54.42m) in net profit during this most recent accounting year.
Betfred, founded by brothers Fred and Peter Done in 1967 with a single betting shop in Salford, Greater Manchester, already owned 53 retail bookies in South Africa and had iGaming presence in the nation through Betting World and Sepels Sportsbet.
Expansion
The major South African expansion has now taken Betfred to a higher, two-tier level and added lustre to its Omnichannel status.
But not every corporate decision has paid-off for the Warrington, North West England-headquartered company.
Betfred, for example, has conducted a costly, £46 million (US$59.61m), strategic retreat from the U.S. market.
And while impressive, FY23 figures–retail revenue up three percent to £577 million (US$747.71m); online up 19 percent to £197 million (US$255.28m)–feature a nominal year-end loss of £72 million (US$93.3m).
Nevertheless, “Betfred has transformed itself from a highly traditional UK land-based betting company to a successful Omnichannel business with over 20 percent of revenue generated elsewhere,” said Paul Leyland of Regulus Partners, a noted gambling industry adviser.
“Five-years-ago few would have expected Betfred to be in such a strong position.”
