Betfred profits fall sharply as online share grows and retail estate shrinks
The bookmaker has reported a significant drop in post-tax profit for its 2025/26 financial year, with results showing a continued shift from retail to online operations amid further shop closures and warnings over future tax increases.
- Profit after tax for the 52 weeks to 29 March 2026 fell to £39.6m, down from £128.8m in the previous financial year.
- Online operations now account for 45% of group turnover, as the company's retail estate continues to contract.
- Betfred confirmed 132 more shops are set to close, with its chairman warning of more severe cuts if gambling duties are increased further.
Betfred has posted a turnover of £995.6m and a profit after tax of £39.6m for the 52-week period ending 29 March 2026. The results represent a substantial decrease in profitability from the prior financial year, which recorded a post-tax profit of £128.8m on turnover of £1.07bn. Direct comparisons are complicated by a change in the company’s year-end date, which resulted in the previous comparative period covering 78 weeks.
The financial report highlights a narrowing gap between the company’s retail and digital divisions. Online turnover reached £451.7m, constituting 45% of the group total. This marks a significant shift from the previous year when online operations represented 39% of turnover. Retail turnover for the period was £544m, or 55% of the total. On a like-for-like 12-month basis, group turnover saw a modest increase of £23.3m.
The company's retail footprint continued to shrink, with its estate decreasing from 1,351 to 1,293 shops during the financial year. In a subsequent development confirmed in July, plans were announced for the closure of an additional 132 betting shops later this year, a move that places up to 600 jobs at risk.
Taxation and cost pressures
The results were published against a backdrop of a challenging tax environment. The increase in Remote Gaming Duty (RGD) from 21% to 40%, implemented in April this year, has impacted the sector. Furthermore, the 2025 Autumn Budget included a proposed rise in General Betting Duty (GBD) from 15% to 25%, scheduled to take effect on 1 April 2027.
In the report, company chairman and founder Fred Done issued a stark warning regarding the potential impact of further tax hikes. According to Mr Done, doubling Machine Gaming Duty (MGD) would compel Betfred to close 495 of its shops within a year. He stated this would lead to the loss of 2,575 jobs and result in approximately £67m in foregone tax revenue for the Exchequer.
Financial details and strategic shifts
Betfred’s gross profit for the year stood at £720m, with an operating profit of £74.1m and EBITDA of £140.6m. The operating profit figure included a one-off charge of £4.6m related to 'aborted acquisition costs'. The company also recorded £7.1m in exceptional charges, which included £801,000 in costs for the closure of a foreign subsidiary. The group’s total tax bill for the period was £24.4m, down from £59.8m in the prior year.
The financial period saw Betfred continue to streamline its international presence, having wound down its US business in the previous year and disposed of its Spanish online business in 2024 for a profit of £1.6m. Despite a slight reduction in overall headcount from 7,872 to 7,795 employees, the company's employee costs rose by £19.2m on a like-for-like basis. Investment in technology continued, with £22.1m spent on R&D and total capitalised development costs reaching £110.4m.
