Betsson soars in key Nordics market
Betsson saw a surge in profits and revenue in Q3 thanks to soaring betting and casino takings across Europe and its key Nordics market.
Just months from its launch in Sweden’s reregulated market, Betsson’s trading update for the three months to the end of September showed that revenue in the Nordics – just less than 50% of its business – grew by 19% to SEK 668.2m (€65/$74m), made up of an 18% rise in casino and 25% surge in sportsbook. Its second biggest region, Western Europe, was up 26% to $49.5m.
Group revenue was up by just over 20% to $155m, with operating income up a huge 57% to $38m.
CEO Pontus Lindwall (pictured) said: “The improved earnings are a result of the scalability in Betsson’s business, showing that improved products and keeping focus on efficiencies results in higher earnings.”
Expanding on Lindwall’s comments, the company attributed its revenue increase to a combination of product improvements and more efficient marketing spend. In the third quarter, it focussed on the re-allocation of marketing investments between different markets, and also “in the mix of traditional marketing and affiliate marketing”.
Marketing spend was fairly flat compared to Q3 2017 at just less than $28m, however the company said “we expect marketing investments to increase as online gaming licences are introduced in Sweden”.
Product improvements included enhancements to its mobile offering which helped that sector grow by 42% to around $105m.
Betsson was one of the first companies to apply for a gambling licence in the reregulated Swedish market when the process began in August. The new regime will begin on January 1.
Betsson’s share price was up around 3% on the Nasdaq Stockholm following the publication of the Q3 figures.