Sky Betting reaps benefits of expansion
SkyBet has continued to see a return on its 2015 gamble to expand as its acquisition by The Stars Group continues to pay off. In the fiscal year ending June 30th 2018, the company saw growth across all of its verticals.
Revenue for the period in question rose by a very healthy 36.5% year-on-year, which translates to £670.5m. Sports betting brought in a revenue of £406.5m, boosted by operator-friendly results in sporting events and signifying an increase of 36.7% over the previous year. Customers bet 13% more than in 2017, staking a total of £3.9 billion altogether.
It wasn’t just good football scores that helped make SkyBet’s year a great one. Revenue from sports betting was boosted by new products and innovative features launched throughout the year. Initiatives like Soccer Saturday Super Boost helped to increase customers loyalty through enhanced pricing on specific teams and the MyBets system, which simplifies bet tracking for bettors, also added value to the experience at SkyBet.
Customers also benefited from the newly introduced fast withdrawals service, which allows them to receive their funds quickly. The service was initially launched in partnership with one banking brand but is set to be rolled out to others in due course. SkyBet also launched ITV7 in collaboration with the British broadcaster ITV. The horse racing prediction game was intended to boost customer acquisition and retention.
The World Cup also helped SkyBet’s books. Through the tournament period, 1.3 million users were active on the sportsbook product, generating a revenue of £33m over the summer, most of which was created before the company’s acquisition on the 10th July.
Casino games brought in £239.2m in revenue, up 19.1% from the previous year. New Sky Vegas products and content initiatives are credited with driving the growth. Casino customers can also make use of the fast withdrawal system and opportunities like Bonus Time, which randomly awards players bonus games, will have kept users onsite and gambling longer.
Other sources like free-to-play games contributed an additional £24.7m to the SkyBet coffers. New launched and product enhancements were likely behind the growth in quarterly active unique visits, which were up 17%, at 1.8m, when compared to the 2016 fiscal year.
Changes at SkyBet
In 2015, Sky Betting and Gaming went public with its plan to invest £11 million in order to expand its operations. According to igamingbusiness.com, the strategy would see the firm open a new customer hub in Leeds. Sky Betting was also keen to further develop its technology hub in Sheffield.
With the BBC claiming that the developments would create 200 new jobs in Yorkshire, the move would also see the company’s total workforce exceed 900 by the end of 2016.
When asked to comment upon the plan, Sky Betting and Gaming CE Richard Flint explained that, “With the business performing well we have decided that now is the time to significantly increase our investment in people and facilities.
“This is a vote of confidence not only in our own plans to make betting and gaming better but also in the health of the Yorkshire economy.”