Revenue up at betsson in third quarter

Swedish online gambling group Betsson AB has reported on its Q3-2017 and year-to-end September results, highlighting:

* Q3 revenue growth up 11 percent at SEK 1,181 million; 2 percent of this was organic;

* Revenue from Western European operations up 63 percent, with a 31 percent organic growth;

* Strong growth in mobile casino operations;

* Operating income (EBIT) down 21 percent at SEK 216 million, attributed to negative currency impacts, increased betting duties and weak performance from recent acquisitions.

* Operating margin lower at 18.3 percent (25.7);

* Active customers up 20 percent at 619,000;

* Online casino revenue up 19 percent at SEK871.1 millionm;

* Online sports betting revenue down 8 percent at SEK 275.1 million;

* Sports betting handle down 3 percent at SEK 5.9 billion.

For the period January to end September 2017, the group reported:

* Revenue up 15 percent at SEK 3,460 million. Casino revenue up by 23 percent.

* Operating income (EBIT) down at SEK 663.8 (681.3) million;

* Profit before tax down at SEK 633.3 (676.4) million;

* Net profit down at SEK 587.6 (634.5) million;

* Operating cash flow down at SEK 667.7 (836.3) million.

CEO, Pontus Lindwall said that despite a good finish to Q3, the group was not satisfied with overall growth and action has been taken to improve overall performance.

He revealed that NetPlay, which was acquired in April 2017, has not developed as well as planned and measures have been taken to get the business back on track. These include more product offerings and increased marketing spend.

On the upside, Lindwall noted that active customers and deposits reached an all-time-high in the third quarter.

“Betsson has made significant investments in the product offering and we have seen a positive impact in customer activity and mobile casino revenues,” Lindwall said. “The roll-out of the new mobile Sportsbook will continue in the fourth quarter, which should put the company in a favourable position for the football World Cup in 2018. Betsson plans to launch the front-end framework OBG for Casino and Sportsbook on apps and desktop during 2018.”

Lindwall concluded by observing that he took over as CEO in September and whilst acknowledging that there is room for improvement, notes that the product offering has probably never been better.

“We have good control of the business, and the Betsson team and I are committed to achieve the long-term growth and earnings that I believe the company is capable of,” he said.

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