Weaker wagering in the UK Tote Group’s international pools weighed on the operator’s performance for the financial year ended 24 September 2023, with operating losses doubling for the period.
Amounts wagered over the the twelve months to 24 September 2023 were up 9.6% year-on-year to £601m, of which £577m was wagered in Great Britain. This resulted in UK revenue growing 14.3% to £22m for the year.
However a lack of outbound wagering into international horse racing pools in markets such as the US, South Africa and Hong Kong whittled down Tote Group’s revenue from other markets, which fell 14.1% to £18.9m.
This ultimately resulted in the business swinging to a loss before interest, tax, depreciation and amortisation of £3.6m, compared to a positive EBITDA of £2.7m in FY2022. Operating loss for the year also widened significantly, from £6.2m to £12.4m, and ultimately a net loss of £13.5m for the year.
Tote banks on cost efficiency drive to return to profitability
The Tote said it had launched a cost efficiency drive with a view to posting EBITDA-positive results for its 2024 fiscal year.
However, it added: “Economic challenges have remained present, which include inflationary cost pressures creating significant cost of living crisis characterised by economic uncertainty.”
It will continue to see impact from these factors in its 2024 figures, but remains confident cashflow can support its future growth. “Overall, the UK Tote Group benefits from its geographic diversity and broad mix of business channels,” it noted in its report.
