Betsson cites casino growth as revenue rises

Betsson has said an impressive performance by its casino business as one of the main reasons behind an increase in revenue during the first quarter.

Group revenue came in at SEK1.21bn (€116.2m/$141.9m) in the three months to March 31, up 10% from SEK1.10bn in the corresponding period last year.

Casino revenue amounted to SEK922.8m in the quarter, up 12% on SEK822.9m last year, while sportsbook revenue jumped 5% from SEK250.3m to SEK263.5m.

Gross profit also climbed 7% year-on-year from SEK806.3m to SEK864.3m.

However, Betsson did report a 12% year-on-year reduction in operating income, which dropped from SEK240.9m to SEK211.4m, with a margin of 17.5%.

The company put this down to higher marketing spend, currency effects and the contribution from acquired companies.

Betsson also saw net income fall by 12% from SEK214.4m to SEK187.9m, with earnings per share also slipping 12% from SEK1.55 to SEK1.36 for the quarter.

Pontus Lindwall, chief executive of Betsson, said: “The growth was mainly from casino, where we saw continued growth in Western Europe.

“Sportsbook in the Nordics grew by 22%, but the region Central and Eastern Europe and Central Asia declined mainly due to currency effects.

“Increased marketing spend, currency effects and contribution from acquired companies had a negative impact on earnings.

“Marketing spend was focused on markets where we see growth opportunities, meaning that Betsson increased spend in Spain where Betsson.es recently launched sportsbook whilst marketing spend in the UK was pulled back.

“The second quarter has begun with revenues slightly lower than average daily revenue for the second quarter last year.

“The weaker start is due to a decline in an acquired company and a weaker than average sportsbook margin in the beginning of the quarter.”

Related article: Full-year revenue, profit growth for Betsson