Betsson Q1 operating profit just above forecast

Business News

Revenue for the first quarter 2018 was SEK 1,210.0 (1,102.0) million, an increase of 10 percent compared to the same quarter 2017. Organic growth was 4 percent for the quarter. The growth was mainly from casino, where we saw continued growth in Western Europe.

Sportsbook in the Nordics grew by 22 percent, but the region Central and Eastern Europe & Central Asia (CEECA) declined mainly due to currency effects.Operational income for the quarter was SEK 211.4 (240.9) million, a decline of 12 percent compared to the same quarter 2017. 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 recently launched sportsbook whilst marketing spend in the UK was pulled back. The operational expenses also include a non-recurring cost of SEK 15 million for the organisational restructuring implemented in the first quarter.

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.”