Betsson ‘not satisfied’ despite revenue growth in Q3

Pontus Lindwall, chief executive of Betsson, has said the firm is “not satisfied” with its performance during the third quarter, despite achieving year-on-year revenue growth.

Revenue in the three months through to September 30 amounted to SEK1.18bn (€122.4m/144.5m), which represents an increase of 11% on the corresponding period last year.

Betsson’s casino business remains its main source of income with SEK871.1m in revenue, up 19% on last year, but sportsbook revenue fell 8% to SEK275.1m.

Gross profit in the third quarter was also up 6% year-on-year from SEK807m to SEK859m, with active customers climbing 20% to 619 million and deposits up 16% to SEK4.1bn.

However, operating income dropped 21% to SEK216m, while net income also fell 26% to SEK187m, and Betsson ended the quarter with earnings per share of SEK1.35, down 27% on last year.

“Despite a good finish to the quarter, we are not satisfied with the overall growth in the quarter and Betsson has taken action to improve performance,” Lindwall said.

“Moreover, NetPlay, which Betsson acquired in April 2017, has not developed as well as planned and measures have been taken to get the business back on track.

“The group is committed to continue to develop the product offerings and to achieve good returns on marketing spend in order to further capture growth.”

For the year-to-date, through to the end of September, revenue at Betsson came in at SEK3.46bn, up 15% on the same point last year, while gross profit climbed 12% to SEK2.52bn.

However, net income is down 7% to SEK587.6m, with operating income falling 3% to SEK663.8m and earnings per share dropping 7% to SEK4.25.

Lindwall added: “I took over as CEO of Betsson AB in September and I can conclude that the product offering has probably never been better, but also acknowledge that there is room for further improvements in the operations and changes are being made.

“We have good control of the business and the Betsson team and I are committed to achieve the long-term growth and earnings that I believe the company is capable of.”

Related article: Betsson seeking new boss after Bengtsson leaves “immediately”