Betsson reports strong Q2-2017

Online gambling group Betsson has reported another successful quarter, advising that its Q2-2017 highlights include:

* Organic revenue growth of 15 percent;
* Overall revenue up 26 percent at SEK 1,177.5 million;
* Gross profit up 23 percent at SEK851.1 million;
* Net Income: SEK 186.1 million -up 27 percent;
* Active players down 2 percent at 551,000;
* Total deposits up 17 percent at SEK 4,056.3 million;
* Casino revenue increased by 28 percent and Sportsbook revenue by 15 percent to SEK 876.6 million and SEK 255.6 million respectively;
* Business in the Nordics region grew by 28 percent and the Western Europeean region by 69 percent;
* Operating income (EBIT) amounted to SEK 206.9 million, an increase of 31 percent. In constant currency, EBIT was SEK 224.4 million;
* Sustainable revenue increased by 58 percent and betting duties amounted to SEK 53.5 (31.3) million.

For the period January-June 2017, the company reported the following highlights:

* Revenue increased by 18 percent to SEK 2,279.4 million. Casino revenue increased by 26 percent;
* Operating profit amounted to SEK 447.8 (408.4) million, corresponding to growth of 10 percent;
* Profit before tax amounted to SEK 427.0 (405.3) million;
* Net profit amounted to SEK 400.5 (380.3) million, corresponding to SEK 2.89 (2.75) per share;
* Operating cash flow amounted to SEK 447.3 (541.9) million.

CEO, Ulrik Bengtsson commented:

“Betsson continues to gain market share, both in in the highly competitive Nordic region and in Western Europe. The continuous product development is clearly paying off as both casino and sportsbook have developed strongly. Operating Income (EBIT) grew by 31 percent. Operating income shows strong growth, despite increased betting duties, a continuing currency headwind and increased marketing expenses, again showing the scalability of the business model over time.

“It is also a good indication of the stability and balance of the business. Betsson is larger and a significantly more well-balanced business with higher growth rates, compared with a year ago.

“In Q3-2016, we made a step change in our product development and launched a very successful new mobile Casino based on Betsson’s proprietary OBG framework, resulting in three consecutive quarters with Casino growth above 20 percent. We also made some significant improvements to the sportsbook, including increased market depth, more simultaneous live events, improved functionality such as cash-out, and most recently, the launch of an improved racing offer. This has enabled the strong sportsbook growth of 48 percent in the Nordics.

“The next big initiative is a new mobile sportsbook developed on OBG, which is currently being rolled out. We believe we will see the full effect of this in the sportsbook revenue in the fourth quarter and onwards.

“The development of the technical platform continues, in order to outgrow the market also in the future, and to absorb the increasing cost of regulations. Betsson will also continue to be active in the consolidation of the online gaming market.

“The daily revenue in the beginning of the third quarter was, as expected, much higher than the average daily revenue for the full third quarter 2016. Operating income in the third quarter last year was very strong for Betsson, partly due to a strong finish to Euro 2016 with a higher than average sportsbook margin.”

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