Betsson reports strong 2011

Swedish gaming group, Betsson, reported on its Fourth Quarter and Full Year 2011 performance, presenting another set of strong results.

Fourth Quarter Results and KPI’s include:

–     Revenues amounted to SEK 515.2 million (Q4/2010: SEK 484.3 million) and the operating margin amounted to 33.4 percent (Q4/2010: 26.4 percent)

–     Operating income amounted to SEK 172.3 million (Q4/2010: SEK 127.7 million), equivalent to an increase of 35 percent

–     Income before tax amounted to SEK 172.9 million (Q4/2010: SEK 128.7 million)

–     Net income totaled SEK 165.8 million (Q4/2010: SEK 125.2 million), corresponding to SEK 4.01 (Q4/2010: 3.19) per share

–     Betsson has no interest-bearing liabilities and liquid funds amounted to SEK 509.7 million (Q4/2010: SEK 497.1 million)

–     A withdrawal from a gaming account by the player who won the record jackpot at the end of the third quarter had a negative impact of EUR 11.7 million on liquid funds

–     One new B2B agreement was signed during the quarter, with Berlingske Media in Denmark

–     Betsson received a gaming license in Denmark during the quarter

–     The integration of Betsafe is developing according to plan

–     In the mobile technology area, Betsson complemented its existing Livescore and Sportsbook apps with a Casino app during the fourth quarter.

–     Business to Customer:

–     All time high in gross profit levels to SEK 300.7 million (Q4/2010: SEK 153.2 million) representing an increase of 96 percent (including Betsafe) and 24 percent (excluding Betsafe).

–     Betsafe contributed SEK 110.3 million to gross profit.

–     Nordic customers accounted for 80 percent (Q4/2010: 75 percent) of the segment, while the EU accounted for 18 percent (Q4:2010: 27 percent)

–     Business to Business:

–     Gross profit in B2B amounted to SEK 132.6 million (Q4/2010: SEK 238.3) million. Primarily attributed to divestment of Turkish customer base and weak Turkish currency.

–     A new B2B agreement signed with the Danish media company, Berlingske Media

–     Gaming solution offered through Realm Entertainment continues to develop positively.

Full year 2011 Key Performance Indicators include:

–     Revenues increased by 8 percent to SEK 1,736.6 million (2010: SEK 1,603.2 million) and the operating margin amounted to 32.2 percent (2010: 23.7 percent)

–     Operating income amounted to SEK 559.7 million (2010: SEK 380.6 million), equivalent to an increase of 47 percent

–     Income before tax amounted to SEK 555.4 million (2010: SEK 382.5 million)

–     Net income totaled SEK 527.8 million (2010: SEK 365.7 million), corresponding to SEK 13.12 (9.32) per share

Magnus Silfverberg, president and chief executive officer of Betsson commented:

“Betsson now ranks as one of the world’s most influential gaming companies. We have achieved this position thanks to our strong growth and profitability as well as Betsson’s long-term efforts to create attractive gaming solutions for both partners and end users.

“During the fourth quarter, Betsson has experienced an all-time high in both activity and deposits, while the Group sits at the forefront in the technological development towards a new, reregulated reality in
Europe.”

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