Spread Betting on Spreadex: FY23 Profit Surges 28%

<p dir="ltr">UK-based Spreadex, a sports and financial spread betting services provider, closed fiscal 2023, ended on May 31, with an annual pre-tax profit jump of 28 percent, reaching more than £35.3 million. It netted £28.2 million in profits after taxes.</p><p dir="ltr">Solid Revenue and Profits for Spreadex</p><p dir="ltr">The astronomical profit was generated on a turnover of over £88.8 million, an increase of about 25 percent. It was significantly higher than the company’s 3 percent turnover increase in the previous fiscal.</p><p dir="ltr">“The investments made in FY22, in the foundations required for long-term growth, have driven double-digit year-over-year increases in both revenue and profit. The underlying fundamentals of the business remain strong with both bet numbers and active clients increasing significantly,” the Companies House filing stated.</p><p dir="ltr">The <a href="https://www.financemagnates.com/forex/spreadex-announces-tradingview-integration/">investments made by the company</a> were in its business, and primarily in marketing via branding and sponsorships. Indeed, it has numerous active sports sponsorships, including the ones with Watford FC and Blackburn Rovers.</p><p dir="ltr">With the increasing turnover, the sales cost of the company increased to £12.6 million from £7.4 million. Its administrative expenses came in at over £41.7 million, compared to £36.1 million in the previous fiscal.</p><p dir="ltr">The company’s net assets increased by 16 percent to about £111.5 million. With the <a href="https://www.financemagnates.com/forex/spread-betting-platform-spreadex-sees-21-profit-decline-in-fy22/">healthy profits</a>, it has also decided to pay £12.5 million in dividends, similar to the prior year.</p><p dir="ltr">A Preferred Instrument in the UK</p><p dir="ltr"><a href="https://www.financemagnates.com/tag/spreadex/">Spreadex </a>offers spread betting services, which are extremely popular in the United Kingdom. Unlike other countries, gains from spread betting, sports or financial, are tax-free in the UK. Thus, <a href="https://www.financemagnates.com/thought-leadership/benefits-of-adding-spread-bets-to-brokers-trading-platforms/">financial spread betting</a> is preferred over other similar types of derivatives in the country.</p><p dir="ltr">The company targets retail and professional clients with its services. It also offers sports fixed odds services. Meanwhile, it gained a sports betting license in Denmark and is now testing its offerings in the country with a ‘soft launch’.</p><p dir="ltr">“Spreadex remains the only company that offers both sports and financial spread betting services. The diversity offered by this duel revenue stream continues to be individual to the business,” the filing added.</p>

This article was written by Arnab Shome at www.financemagnates.com.