Betsson Q2 EBIT beats forecasts, sees promising start to Q3

Business News

Betsson AB, has published its financial report for the second quarter and the first half of 2017. During these two periods the company has experienced significant growth in revenues due mainly the development of the casino and sports betting segment. According to the report, the group became larger and has a much more balanced with higher growth rates, compared to a year ago.

Between April and June 2017, Betsson reported revenues of 1.18 billion kronor , up 26%, compared with 935.4 million recorded in the same period last year. The organic growth was equal to 15%.

Gross profit showed an increase of 23% year on year to 694.6 million SEK to 851 100 000 SEK . The EBIT of the company reached 206.9 million Swedish kronor , an increase of 31% over the previous year, when it amounted to 158.3 million. The EBIT margin amounted to 17.6%.

Revenues from the casino segment touched 876.6 million Swedish kronor , up 28% from 683.1 million in the second quarter of 2016. As for the sportsbook, the group recorded a slight decrease of 4% collection of 6 billion SEK to 5.76 billion Swedish kronor . However, revenues from sports betting Betsson has increased from 223 MSEK to 2016 255.6 MSEK in 2017, an increase of 15% on an annual basis.

Betsson continues to gain higher market share, both in the highly competitive Nordic region than in Western Europe. Group revenues in the Nordic countries increased by 28% year on year, while those in Western Europe were up 69%.

According to the CEO of Betsson, Ulrik Bengtsson, continuous product development is clearly paying off especially with regard to the casino and sportsbook segments that are well developed . Operating profit shows strong growth, despite the increase in taxes on gambling, the continued loss of currency and higher marketing expenses, once again demonstrating the scalability of the business model over time.