Betsson delivers growth despite turbulent 2016

Stockholm-listed European sports betting operator Betsson AB is pleased to have grown its core business metrics, despite facing multiple operational challenges and unfavourable conditions throughout 2016.

Closing its 2016 performance, Betsson governance was pleased at the company’s ‘positive development’ which had seen the operator overcome severe currency fluctuations and lower betting margins impacts in H1 2016.

Furthermore, repeating all-round industry trends Betsson’s sports betting division would be negatively impacted by unfavourable results recorded in December 2016.

Despite the challenges, Betsson would declare a group revenue growth of 11% to SEK $4.1 billion (FT 2015: SEK3.7 billion), with its online casino division contributing 70% of total group revenues.

Improved revenues would see Betsson declare a 2016 operating income of SEK 946 million (£85 million) up 6% on FY 2015’s SEK 887 million (£80 million). Betsson governance was pleased with the firm’s positive income results which had been impacted by a group-wide lower operating margin for 2016.

Entering 2017, Betsson governance is confident that its European Multi-brand strategy will deliver growth having overcome a difficult 2016 in which to operate.

Betsson governance now targets expansion in regulated markets having completed the acquisition of German racing operator RaceBets (€34 million December 2016) and now move to complete its buyout of UK interactive gambling operator NetPlay TV (proposed acquisition cost £26 million).

Closing 2016, Ulrik Bengtsson, CEO Betsson AB stated

Betsson’s positive development continues and the first quarter 2017 has started strong. The stable Casino business was 74 percent of revenue in the fourth quarter and Betsson’s brands continue to gain market shares in the segment. Also Betsson’s largest region, the Nordics, grew faster than the market and region Western Europe returned to growth. An increase of deposits by 14 percent and record level in active players shows a strong underlying momentum. In total, the growth in the quarter was 7.4 percent, despite decline in region Central and Eastern Europe and Central Asia (CEECA), compared to the fourth quarter 2015.

Betsson has made significant investments in product development throughout 2016, which has pushed the Casino growth. The Sportsbook investments are expected to have a positive effect in 2017. The acquisition of the horse betting operator RaceBets adds an important product to Betsson’s Sportsbook offering and adds revenue from mainly locally regulated markets. The share of revenue from locally regulated markets is increasing, in accordance with our strategy, and is now close to 20 percent.

Check Also

William Hill Swedish subsidiaries ordered to pay fines on reporting failures

Spelinspektionen – Sweden’s Gambling Inspectorate – has notified that the William Hill subsidiaries of Evoke …

Betsson names GoldenRace virtual supplier for Greek market

Betsson Group and GoldenRace have announced a partnership focusing on Greece, with the latter providing …

Swedish GGR climbs 6% YoY in Q1 2022 but falls from year end figures

The Swedish betting and gaming industry’s post-lockdown recovery has continued in the first quarter of …