LiveScore Group, the parent company of LiveScore Bet and Virgin Bet, has announced a significant increase in annual revenue, surpassing the £200 million mark for the first time. According to recently filed UK documents, the company's turnover for the fiscal year ending March 31, 2025, reached £206.3 million, representing a 15.3% year-over-year increase. This growth occurred despite the company's strategic withdrawal from the Dutch market in November 2024.
Profitability Improvements Amid Strategic Shifts
The financial report reveals substantial progress toward profitability. The group's operating loss was dramatically reduced to £26.7 million, nearly half the £50.7 million loss recorded in the previous year. Gross profit climbed to £157.9 million, while EBITDA loss improved to £15.2 million from £38.8 million. Net loss also showed improvement, standing at £28.6 million compared to £48.9 million in the prior period.
Company executives attributed these results to a gross profit increase that outpaced continued significant investments in marketing and brand development. The exit from the Netherlands, where betting tax rates increased from 30.5% to 37.8% alongside stricter advertising regulations, played a crucial role in this financial overhaul. CEO Sam Sadi described the Dutch market as "no longer viable commercially" at the time of withdrawal.
UK Market Dominance and Tax Challenge
The United Kingdom remains LiveScore's dominant market, accounting for approximately 85% of total revenue. UK-specific revenue surged 26% to £175.6 million, with consumer gambling activities generating £185.1 million (an 18.3% increase). Software development revenue showed remarkable growth, jumping 50% to £2.1 million, though advertising revenue declined 9.5% to £19.1 million.
This strong UK performance arrives at a challenging moment. Just days before the financial filing, the British government increased the Remote Gaming Duty from 21% to 40%, effective April 1, 2026. Industry analysts at Regulus Partners estimate this change could add £20 million to £25 million to LiveScore's annual UK tax burden before any offsets. The broader gambling tax reforms are projected to generate over £1 billion annually for the UK government.
International Expansion and Market Position
Seeking growth beyond its European base, LiveScore launched Virgin Bet in South Africa on March 30, marking the brand's first expansion outside the United Kingdom. This move leverages the group's existing operations in Nigeria as it explores opportunities in new markets.
Despite these efforts, revenue outside the UK declined 14% to £14.4 million, with analysts noting potential "softness in Nigeria" as a contributing factor. Excluding the discontinued Dutch operations, group revenue increased 20.9% to £194 million, though revenue elsewhere in Europe fell approximately 29%.
Industry-Wide Impact and Competitive Landscape
LiveScore is not alone in facing these regulatory challenges. Major industry players are also assessing the impact of the UK tax changes. Entain estimates approximately £200 million in additional annual expenses, while Flutter anticipates the new rules will reduce its adjusted EBITDA by around $320 million in 2026. Evoke's CEO Per Widerstrom warned of a "significant reduction in investment into the UK" following the budget announcement, with the company subsequently closing betting shops.
According to Alun Bowden, Senior Vice President for Strategic Insight at Eilers & Krejcik Gaming, approximately 10.3% of the UK online gambling market may exit by 2028. Bowden places LiveScore in the market's second tier rather than among the top names, suggesting the company could gain market share if smaller competitors withdraw, though this also highlights the crowded nature of the middle market segment.
Future Outlook and Analyst Perspectives
Trade publication EGR noted LiveScore's expressed confidence in the business's "sufficient resilience" to handle the increased tax burden. However, analysts remain cautious. Jack Cummings at Berenberg observed that smaller, UK-centric firms like LiveScore face a disproportionately larger impact from the new tax compared to industry giants.
The company's ability to sustain its growth momentum remains uncertain. The South African expansion is too recent to determine whether international gains can offset potential slowdowns in UK growth or compensate for rising domestic taxes. As the gambling industry navigates this period of regulatory change, LiveScore's strategic decisions in the coming months will be critical to its continued financial improvement.
