Betsson alters dividend policy to focus on M&A
Betsson has announced that it is to change its dividend policy as part of an effort to pursue further mergers and acquisitions.
In a statement, the company said that its board’s ambition for the ordinary distribution is to provide a “continued attractive capital structure, to distribute up to 50 percent of net earnings, through cash transfer, an automatic redemption process or via repurchase of own shares”.
Betsson added that the new dividend policy is applicable as of the 2017 financial year.
Pontus Lindwall, chairman of the board at Betsson, said: “The board reasons that Betsson should have a dividend policy that is relevant for its growth profile.
“The advantages of size are increasing, not least following the introduction of local regulation of the gaming market. The new dividend policy gives Betsson increased capabilities to make acquisitions, which the board believes will add long-term value to shareholders.”
Betsson added in the statement: “Betsson’s strategy is to grow both organically and through acquisitions.
“The introduction of new local regulations increases both technical and compliance requirements, and rewards companies of scale that operate on proprietary platforms and systems.
“The increased complexity of the market drives consolidation, and Betsson is well positioned to be a successful acquirer.
“Betsson’s subsidiaries have gaming licenses in 11 jurisdictions and the company’s ambition is to increase the share of revenue from locally-regulated markets, which the company views as sustainable and valuable revenue streams.”
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