Despite recording a strong end-of-year, Stockholm-listed online gambling group Betsson AB has reported full-year 2017 declines in operating income and earnings, as governance moves to streamline company operations.
Publishing its 2017 results, Betsson would record, improved Q4 2017 group revenues of SEK 1,25 billion boosted by favourable sporting results recorded during the Q4 trading period.
However, Betsson has had to adjust to tougher market conditions combined with higher corporate expenses, as the operator moves to expand its services and enter new markets.
Expansion costs, combined with negative currency impacts and increased betting duties would see Betsson governance declare a 7% decline in operating income to SEK 882.2 million (€88 million).
Despite recording increased full-year group revenues of SEK 4.7 billion (FY 2016: SEK 4.1 billion), combined with improved player KPIs, tough trading conditions would see Betsson declare a 10% drop in net income to SEK 786 million (€79 million).
Entering 2018, Betsson governance has moved to implement a series of ‘efficiency measures’ which will reduce corporate net costs by SEK 50-60 million per annum.
In its full-year statement, Betsson governance revealed that it would move to create a ‘flatter organisation’ which it believes will enable its operations to become more efficient in the long term.
Commenting on the corporate update, Pontus Lindwall Group CEO of Betsson AB, stated;
“We have identified and started to implement a number of improvements on both the product and the marketing side. The launch of the new front-end system for Casino and Sportsbook on desktop and apps should be completed during 2018. Betsson will focus marketing spend on key markets with the ambition to achieve a higher return on investment. As an example, we have scaled back on marketing volumes for the UK.”
“When I stepped in as CEO in September, my first action was to analyse the situation the company was in and together with management set a plan on how to bring Betsson back to higher growth and earnings. It will take some time until I am satisfied, but we are systematically implementing actions to improve performance and expect to see results towards the end of the year.”