EBIT and revenue both up at Betsson

The Betsson gambling group has published its financial results for the periods Q2-2018 and H1-2018, reporting the following highlights:

Q2

* Group revenue up 14 percent at SEK 1,346.4 (1,177.5) million, with an organic growth of 11 percent.

* Casino revenue grew by 16 percent and Sportsbook revenue by 17 percent, with a sportsbook margin of 6.3 (6.4) percent.

* 3.7 percent of the Group revenue in the second quarter was related to the FIFA World Cup that started on 14 June 2018.

* Operating income (EBIT) was SEK 300.7 (206.9) million, an increase of 45 percent, mainly due to high activity during the World Cup, product improvements and efficiencies.

* The operating margin was 22.3 (17.6) percent.

* Total deposits SEK 664,7 million (4 056,3)

H1

* Group revenue was SEK 2,556.4 (2,279.4) million, an increase of 12 percent with an organic growth of 8 percent.

* Operating income (EBIT) was SEK 512.1 (447.8) million with margin of 19,6 percent.

* Net income was SEK 459.4 (400.5) million, corresponding to SEK 3.32 (2.89) per share.

* Operating cash flow amounted to SEK 583.3 (447.3) million.

* SEK 393.1 million was distributed to shareholders in June.

* Active customers 692 431 (551 181) 26 percent.

* Sportsbook revenue up 17 percent at SEK 563,7 (505,9 million)

* Casino revenue up 16 percent percent at SEK 1 939,5 (1 699,5 million)

Total deposits SEK 8 855,0 million (7 845,5)

CEO, Pontus Lindwall reported:

“Casino revenue increased by 16 percent and reached over 1 billion SEK in revenue in a quarter for the first time. The Sportsbook revenue increased by 17 percent with a sportsbook margin slightly below the eight quarter rolling average.

“Operating expenses increased by 4 percent compared to the 14 percent revenue growth.

“There has been progress in some areas during the quarter, for example better efficiency and product upgrades, but we still have a lot more to do. We continue to systematically follow our back-on-track plan, which is a long list of actions that are built around four main areas: growth in core markets, product and technology, efficiencies, and M&A activities temporarily on hold.

“The third quarter has begun with daily revenues higher than the average daily revenue for the full third quarter last year. The revenue increase is to a large extent a result of activity related to the FIFA World Cup that ended on 15 July 2018 and should not be regarded as guidance for the full third quarter.

“We continue to work hard with the ambition to make Betsson’s product offering more competitive and the marketing efforts more efficient. However, it will still take time until we see sustainable improvements.”

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