Betsson reports first quarter results

Betsson AB (publ) has reported first quarter results with a decline in EBIT attributed to negative currency fluctuations, increased marketing spend and a disappointing return from recent acquisitions.

Key metrics for the 12-week period ending March 31, 2018 include:

Group revenue of SEK 1,210 million (Q1/2017: SEK 1,102 million), up 10 percent with an organic growth of 4 percent.

Gross Profit of SEK 864.3 million (Q1/2017: SEK 806.3 million), up 7 percent.

Net income was down 12 percent to SEK 187.9 million (Q1/2017: SEK 214.4 million).

Earnings per share were down 12 percent to SEK 1.36 (Q1/207: SEK 1.55).

Online casino revenue grew 12 percent to reach SEK 922.8 million (Q1/2017: SEK 822.9 million).

Sportsbook revenue grew 5 percent to reach SEK 263.5 million (Q1/2017: SEK 250.3 million).  Gross turnover was down 4 percent.  Sportsbook margin was 6.6 percent.

Operating income (EBIT) was SEK 211.4 million (Q1/2017: SEK 240.9 million), down 12 percent.

Operational expenses in the quarter included a non-recurring restructuring cost of SEK 15 million.

Operating margin was 17.5 percent (Q1/2017: 21.9 percent).

Pontus Lindwall, chief executive officer of Betsson AB, said: “We follow a detailed plan and took several actions within different areas in the first quarter, aiming at getting Betsson back on track.

“The recent restructuring was made to increase efficiency in Betsson’s operations. We will continue to systematically implement further improvements. However, I want to repeat my message from last quarter that it will take time until we can see any material effects.”

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