Bet365 founder Denise Coates earns £213m - but profits tumble by 90 per cent

Profits at bet365 nosedived by 90 per cent in the year to March as the betting giant invested heavily in developing its brand in North America and elsewhere, according to results released on Friday.

While revenues increased by two per cent to £2.85 billion, profits slumped as the company pursued an aggressive expansion policy.

The group's profit on its gambling operations fell to £76.1 million from £525.1m the previous year and a loss of £26.2m from the group's ownership of Stoke City football club resulted in a combined pre-tax profit of £49.8m, a fall of nearly 90 per cent on the previous year's figure of £469.3m.

Active customers increased by 48 per cent during the year, compared to 13 per cent in the previous period.

The company said a year-on-year reduction in sports margin offset the impact of wagering growth, resulting in sports revenue falling by two per cent. However, that decline was more than offset by a 25 per cent increase in gaming revenues.

Profits were impacted as administration expenses rose by £319.5m, "driven by significant costs associated with raising brand awareness in new markets alongside continued investment in IT infrastructure and technology".

Bet365: profits for the gambling company fell by 90 per centCredit: Alan Crowhurst (Getty Images)

Bet365 were awarded licences in the Netherlands and Argentina during the period, while the company said further resources were devoted to expanding their footprint in North and South America.

Costs also increased as staff numbers grew from 5,443 to 6,092, although the accounts said this was offset by a reduction in director remuneration of £57m.

Denise Coates, the founder and joint chief executive of bet365, was paid a salary of £213m during the year, down from around £250m in 2021 and the second successive cut in pay she has received.

Coates, who launched bet365 in Stoke-on-Trent in March 2001, will also get a share of a £100m dividend paid to bet365's directors which will push her total pay to near £260m.

A contribution of £100m was also made to the Denise Coates Foundation charity.

Gambling operators in the UK are awaiting the publication of the government's long-delayed gambling review white paper which is expected to include proposals for significant reform of the sector, including affordability checks, limits on stakes for online gaming and new rules for advertising.

In her review of the business Coates said the group "has continued to work with regulators and industry colleagues, both in the UK and internationally, in order to demonstrate best practice in safer gambling".

She added: "The group looks forward to the publication of the UK government's white paper as part of the ongoing review of the Gambling Act and to continue to engage constructively with the policy development process."

Bet365 are privately owned by Coates, her brother and fellow joint chief executive John, and father Peter. Last year the family topped the British taxpayer list for the third year in a row according to the Sunday Times.

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