Sky Bet: Profit slides as inflation and salary rises bite
Profit at Sky Bet was slashed during its latest financial year as its operating expenses surged by almost £45m.
The business behind the brand, which is owned by Flutter Entertainment, has reported a pre-tax profit of £48.9m for 2023, according to newly-filed accounts with Companies House.
Its profit was hit because the firm’s operating expenses increased by £44m in the year to £310.2m due to the impact of high inflation and a rise in salary costs, the company said.
The new accounts also show that revenue at the firm behind Sky Bet increased from £469.7m to £495.4m over the 12-month period.
The documents also show that the firm did not pay out a dividend in the year, having issued one totalling £107.2m for 2022.
Sky Bet, which is headquartered in Leeds, was taken over by Flutter Entertainment in 2020 when it acquired The Stars group for £3.4bn.
The brand had previously been 80 per cent owned by CVC Capital Partners following a £600m deal in 2015.
Sky Bet owner Flutter is quids in
The results come after Flutter Entertainment, which also owns Paddy Power and Betfair, upped its guidance amid booming demand from its US audience.
The Dublin-headquartered firm, which is listed in New York but has a secondary listing in London, projected a 20 per cent year-on-year increase in group revenue and a 34 per cent rise in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) by the end of 2024.
The company upgraded its forecasts in August after group revenue jumped 20 per cent to $3.6bn (£2.8bn) in the three months ending 30 June, 2024, up from $3bn (£2.3bn) in the same period of 2023.
This was driven by strong performances in all of its territories. US revenue climbed 39 per cent during the quarter from $1bn (£779m) last year to $1.5bn (£1.2bn). UK and Ireland revenue increased 17 per cent to $928m (£723) from £789m (£614m).
The results for Sky Bet also come after fellow Flutter-owned Tombola posted record revenue and profit for 2023.
The Sunderland-headquartered company achieved a revenue of £201.6m for its latest financial year as well as a pre-tax profit of £50.7m.