British sportsbook bet365 returned to profitability during the 12-month period ending March 31, 2024, helped by US expansion and a significant executive pay cut. The book reported a £396.6 million operating profit compared to a £24.7 million loss in the previous 12-month period in its latest regulatory filing.
Betting revenue was up 11%, driven by new US operations in Arizona, Iowa, Indiana, Kentucky, Louisiana, and Pennsylvania. An additional week in the accounting period, compared to the prior year, also aided the online sportsbook’s results.
CEO takes a pay cut
Denise Coates, bet365 founder and co-CEO took a significant pay cut in the reporting period. In the previous year, Coates took home nearly £221 million in salary. The latest financial statement shows Coates made less than half that during the reporting period. But along with her £94.7 million salary, Coates – a majority shareholder - received roughly £64 million in dividends. Even with the pay cut, Coates is still the UK’s richest woman.
Meanwhile, the company boosted its charitable donations by 20 percent. Roughly £120 million of its £127 million charitable donations went to the Denise Coates Foundation.
There was one minor trouble spot for bet365. During the reporting period, bet365 still owned a controlling stake in Stoke City FC. The soccer team lost £30.3 million this period, compared to £12.3 million the prior year. But this should be less of a problem going forward.
After the reporting period, Stock City was “demerged” from bet365 and the book's co-CEO John Coatesis now controls it. Meanwhile, the company will continue as the team's principal partner and shirt sponsor.
Women's sports help bet365's expansion
While this filing only reflects bet365’s performance through March, there are indications the sportsbook's good news prevailed throughout 2024. In a separate report, bet365 published its year in review. The company picked a great time to expand in the US, capitalizing on the explosion of women’s sports, in general, and the WNBA’s Caitlin Clark mania, in particular.
Player prop bets also played a key role in bet365’s sunny year-end review:
“Nikola Jokic, Luka Doncic, Shai Gilgeous-Alexander, Jayson Tatum, LeBron James, and Stephen Curry can often see more action on their total points scored lines than on the game total,” bet365 trading leader Aron Wattleworth noted.
Meanwhile, bet365 extended its US growth strategy last year. In December, the company received a license to operate both a retail and online sportsbook in Illinois.
