UK betting operator Betfred loss nearly £41m in its most recent fiscal year, with retail writedowns fingered as the corporate culprit.

According to documents filed with Companies House, the privately-held Betfred saw its revenue top £727.6m in the 12 months ending September 30, 2018, a 14.7% improvement over its fiscal 2016-17 result. In percentage terms, the revenue gain was greater that the 9.6% rise the company reported in 2016-17.

Betfred’s 2017-18 overall betting handle rose 6.4% to £13.5b, a slower growth rate than the 17.5% in 2016-17. The company doesn’t break out separate figures for its online and retail operations, but the company credited growth in its online customer ranks for helping to fuel the rise.

However, while gross profit improved 15% to £573m and earnings jumped 43% to £119.4m, the company booked a £41.7m net loss for the year. It’s the second straight year of red ink, and this most recent loss is three times the £13.4m the company reported in 2016-17.