Betsson Retains Good Outlook Following Strong Q1

Betsson Group posted a “strong quarter in all areas” with the organisation seeing no significant disruption to business in the midst of the current global crises, and no improvement in its operating strategy deemed necessary.

Withdrawing any long-term financial estimates, the company claims that “continuous consolidation seen among gambling firms is likely to be accelerated,” coupled with current changes from offline to online, would increase its organic growth and strategic acquisition opportunities.

President and CEO Betsson Pontus Lindwall, explained: “Looking ahead, when the situation has normalised, I am confident we will come out of this extraordinary situation even stronger, benefiting from our sustainable growth strategy.

“The offline to online transition is likely to be accelerated globally as a result of the covid-19 pandemic, creating consolidation opportunities for strong businesses. Our successful strategy continues, I am proud of this quarter’s performance and look forward to the future with confidence.”

Lauding a “milestone” first pure sportsbook customer and new casino innovations, Betsson saw sales reach SEK 1.41bn during the quarter (2019: 1.33bn), an rise of 7% due to growth of its CEECA and the majority of the world’s reporting segments.

Net income stayed stable year-on-year at 229.6 m SEK, the EBITDA jumped two percent to 352.9 m SEK (2018: 345.8 m SEK) and the gross profit rose five percent from 899.1 m SEK to 943.9 m SEK. The number of active clients dropped one per cent to 680,938.

Casino income was marginally higher than SEK 1bn in the same period last year, representing 72 percent of overall company income (2019: 76 percent). Mobile casino revenue was SEK 674.8 m (2018: SEK 664.6 m) and accounted for 67 percent of overall casino revenue (2019: 66 per cent).

In the first quarter, sportsbook revenue stood at SEK 384.9 m (2018: 297.8 m), an rise of 29%, and reflects 27% (2019: 22%) of company sales.

Lindwall remarked: “Betsson has the ambition to grow faster than the market, organically and via acquisitions. This quarter, we acquired an online gambling B2C business which is included in our books from mid-April and is expected to contribute positively to our earnings from day one. We see strong interest in our products which are being continually optimised to create a compelling choice of entertainment and UX for the consumers.”

Adding: “I am impressed with how well the company has adopted to the current global challenge. We are performing surprisingly well with no major disruption to the business and we see no need to make any changes to our strategy or the way we operate. We will continue investing in our technology and product portfolio and will launch new products and features as planned.”