UK Tote Group making 'strong operational progress' but losses widen

Losses have widened at the UK Tote Group according to its latest set of accounts, but the company said it was making "strong operational progress".

Underlying earnings, which the group said was the fairest representation of the performance of the business, fell to a loss of £3.3 million in the year to September 24, 2023, compared to a profit of £2.9m in 2022, while the group's operating loss doubled to £12.4m from £6.2m.

The group said that financial performance had been "negatively impacted by a reduction in wagering volumes outbound into international pools" and that in response it had delivered a cost efficiency program to ensure a return to ebitda (earnings before interest, taxation, depreciation and amortisation) profitability in 2024. UK trading had, however, been "resilient".

The group said its fourth year having complete ownership of the Tote since its purchase from Betfred in October 2019 had been a period of "continued operational progress both domestically and internationally".

UK host pool wagers in 2023 were £577m, an increase of eight per cent on 2022, "reflecting underlying like-for-like growth".

In its deal to buy the Tote, the group purchased the share capital of TPoolco Limited, the business-to-business arm of the Tote which includes Tote Direct, as well as that of TDCO Limited, which operates the online Tote betting brand direct to customers.

The reduction of wagering volumes outbound to international pools meant that earnings from TPoolCo fell more than 18 per cent to £22.7m, although the business "remained highly profitable".

TDCO generated an ebitda loss of £15.1m compared to £14.8m the previous year, which the group said represented a "stabilisation of losses", that part of the business having required "significant cost infrastructure investment".

Susannah Gill: "We are continuing to make significant investment across key areas of the business"

Communications and corporate affairs director Susannah Gill said: "We are continuing to make significant investment across key areas of the business which is ensuring strong operational progress, both domestically and internationally.

"We remain focused on listening to our customers as we improve the value and experience of the Tote, driving robust growth in the UK host pool as more racing fans choose to bet with the Tote.

"We have launched several important developments with international partners over the last year, including commingling into the PMU’s pools and the introduction of US racing on tote.co.uk."

The group also made payments of £7.7m, up from £7m, as part of its promise to pay the tracks involved in racecourse pool betting operation Britbet at least £50m over seven years.

Gill added: "We will continue to invest and improve the business, including working with partners to help secure more World Pool days for British and Irish racing in order to provide crucial new income for the sport. Our strategy remains clear and unchanged as we execute our plans for creating a profitable and successful future for the Tote."

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