Betfred have taken a huge step back into profitability after walking away from some of the firm’s overseas ventures.
It comes at the start of a year in which the betting industry is bracing itself for the first of Chancellor Rachel Reeves’ gambling tax hikes.
The UK bookmaker’s latest set of accounts filed at Companies House this week shows a profit after tax of £128.9 million for the 78-week period up to March 30, 2025.
That is a marked turnaround from the £71.7 million loss which was reported in the previous 53-week period.
The reason for the difference in time spans is that Betfred changed its year-end date to March after its previous figures ran up to October 1, 2023.
Preparing For UK Gambling Tax Hikes
It is a significant improvement in fortunes at a time when the UK betting landscape is uncertain.
From April 1, Remote Gaming Duty will increase from 21% to 40%, with General Betting Duty scheduled to go up from 15% to 25% in April next year.
The changes could hit the UK industry to the tune of £1.6 billion a year from 2027.
Betfred co-founder and chairman Fred Done has already warned that spiralling costs could lead to shop closures among its stable of 1300 retail outlets.
It is also putting up to 7,500 jobs at risk.
He has not been alone in that assessment, with William Hill owner Evoke fearing “thousands of jobs” could be lost.
Once Upon A Time In America
An important strategic measure was Betfred’s withdrawal from the US marketplace as well as offloading operations in Spain.
The sportsbook specialist operated across 10 US states at its peak including Washington, Nevada and Colorado.
Betfred withdrew from its last surviving outpost in Pennsylvania in July 2025, bringing an end to its activity in the US.
During the same reporting period, Betfred Spain was sold for £2 million.
That deal in September 2024 generated a £1.6 million profit for the company.
Expanding In South Africa
While it no longer has interests in the US or Spain, Betfred has improved its foothold in South Africa.
A significant move was the acquisition of a local holding company that owns BF SA Support Services.
That firm is the service provider to Betfred’s South African business.
The UK bookmaker also holds a majority stake in Lotto Star, South Africa’s largest online betting company.
Successful Launch Online
Betfred’s strategic summary confirmed development costs of its online platform which ran to £88.3 million.
The platform welcomed new sign-ups from December 2023 and was fully available to all customers from the start of 2024.
Its net book value is now included among the company’s intangible assets and is recorded as £84.6 million.
“By embedding innovation into our core operations, we ensure we remain adaptable and resilient in a dynamic marketplace,” said Betfred’s summary.
“Ongoing R&D investment not only drives long-term value creation but also reinforces the group’s position as a leader in delivering cutting-edge, responsible, and entertaining betting solutions.”
The Numbers Game
Turnover for the 78 weeks to March 30, 2025, amounted to £1.46 billion.
Betfred’s betting shops generated £894.8 million in turnover, while online contributed a further £563.6 million.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose to £294 million, up from the previously reported figure of £117 million.
A healthy pre-tax profit of £188.7 million lost around £59.8 million allocated for tax costs.
That produced a profit of £128.8 million but Betfred also noted the effects of negative foreign exchange rates (£12.8 million) and an adjustment to its pension liabilities (3.4 million).
That gives an estimated bottom-line net profit of £112.6 million for the 78-week period.
