The UK Tote Group suffered from weaker wagering on its international pools for the year ending 24 September 2023. Operating losses doubled for that period.
The amount wagered during the 12 months leading up to the 24 September 2023 was 9.6% higher than the previous year, totaling PS601m. Of this, PS577m were wagered in Great Britain. The UK’s revenue grew 14.3%, to PS22m.
Tote Group’s revenues from the other markets fell by 14.1%, to PS18.9m, due to a decline in outbound betting into international pools of horse races on markets like South Africa, Hong Kong, and US.
The business ended up with a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of PS3.6m versus a positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) of PS2.7m for FY2022. The operating loss also increased significantly from PS6.2m up to PS12.4m and a final net loss of 13.5m.
Toy banks to be cost-efficient to improve profitability
The Tote announced that it has launched a cost-efficiency drive in order to achieve EBITDA positive results by 2024.
It added that “economic challenges remain present.” These include significant inflationary pressures, which create a cost-of-living crisis characterized by economic insecurity.
The impact of these factors will be seen in 2024, and the company is confident that cashflow will support future growth. In its report, it stated that “overall, UK Tote Group is a beneficiary of its geographical diversity and wide variety of business channels.”
