The online gambling casino Betfred recently posted a drastic eight-figure loss at the end of the last fiscal year, despite a significant gain in revenue.
Betfred casino released its financial results for the last 12 months, which ended on the 24th of September 2017. The results showed an increase in the revenue of 9.6% to NZD$634.5 million, while the overall earnings increased by 3% to NZ$83.3 million. Their total online gambling turnover improved by 17.5% to a total of NZ$12.7 billion.
Betfred Casino – Fiscal Details
The improvement in the revenue was a result of the online casino’s 2016 addition of 322 Ladbrokes sports betting shops and its other branch – Totepool – signing a new deal with the Jockey Club in Hong Kong. Lastly, there were also unspecified increases in Betfred’s casino player base that also contributed in part.
Financial analysts have estimated that the online gambling site’s year-on-year revenue has gone up by 3% to a total of approximately NZ$90 million. Regardless of all the good figures that the company has been receiving, Betfred Casino has experienced an operating loss of about NZ$13.4 million.
The online casino operator stated to the media that they might have experienced this huge drop in revenue due to the goodwill impairment of their digital assets, high online gambling duties, and rising costs.
Media has reported that Betfred announced that they might be closing down about 900 betting shops. As a result, 4 500 staff will also be laid off in the event that the government proceeds with its plan of cutting the maximum stake on betting odds from NZ$100 to only NZD$2.
Overview
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