The Betsson Group anticipates that an rapid transition from offline to online may potentially increase the company’s organic growth prospects and build chances of competitive prices for strategic acquisitions.
Betsson again lambasts online casino restrictions levied in Sweden, lauding the €33 m acquisition of the B2C company by the Gaming Innovation Group, embarking on 60 employees in the process, as well as praising US entry achieved in Colorado.
Pontus Lindwall, president and CEO of Betsson said: “In the beginning of the third quarter, when most countries had removed Corona-related restrictions, Sweden sadly enough implemented restrictions on online casino, without empirical evidence. This measure will unfortunately push even more consumers to play outside of the Swedish regulation.”
The comments come as the online betting and gaming company releases its new financial statement, which reveals that group revenue rose 20 percent to SEK 1.53bn for the second quarter of the year (2019: SEK 1.27bn).
Casino sales rose 40 percent from SEK 917.8 m to SEK 1.28bn and accounted for 84 percent of group revenue. Mobile casino revenue was SEK 925.6 m (2019: SEK 631.1 m) and accounted for 72 percent of overall casino revenue (2019: 69 percent).
In the second quarter, sportsbook sales amounted to SEK 226.5 m (2019: SEK 341 m), reflecting 15 percent (2019: 27 percent) of the overall figure.
Quarter gross profit jumped 12 percent to SEK 958.5 m (2019: SEK 858.9 m), with EBITDA rising six percent from SEK 304.2 m (2019: SEK 287.4 m).
Revenues hit SEK 2.95bn on a year-to-date basis, reflecting a 13 percent rise from SEK 2.6bn, with gross income up eight percent to SEK 1.9bn (2019: SEK 1.75bn) and EBITDA up four percent to SEK 657.1 m (2019: SEK 633.2 m) respectively.
Lindwall explained: “I am proud that Betsson has delivered all-time high revenues under the most challenging conditions. The second quarter was strong and followed the positive trend from the start of the year despite market challenges during this extraordinary period.
“The global pandemic had an immediate effect on the company from March onwards. We responded quickly and decisively to make changes in the offer, and I am particularly pleased to see the strong performance in casino.
“Sports betting revenues continued to be impacted in the second quarter by the pandemic as expected, however benefited from the progressive return of football and other sporting events at the end of the quarter. Our business has remained financially robust and resilient to this impact, being both diversified and flexible.
“Our key focus areas remain the health and safety of both our employees and the societies in which we operate. Early on, we proactively took actions to enable both a safe and effective working environment for the whole group and to ensure delivery of products and services to customers with uninterrupted quality.”
Adding: “The immediate outlook is naturally uncertain, however Betsson is in good shape and we are in it for the long term. Our proprietary technology is a strategic advantage, our diversification in markets, verticals and brands makes us resilient to market fluctuations and our financials are rock solid. This makes me optimistic about the prospects for Betsson.”
We have just published the Q2, 2020 report. The Group revenue increased by 20% YoY and our CEO, Pontus Lindwall is proud that Betsson has delivered all-time high revenues under the most challenging conditions. Read the full report here https://t.co/gPUL2YJ7yr pic.twitter.com/2WHS9tRtbV
— Betsson AB (@BetssonAB) July 21, 2020