Betsson Group: Interim report January – June 2016

Revenue in the second quarter increased by 9 percent

Second quarter

  • Revenue increased by 9 percent to SEK 935.4 (860.6) million. Exchange rate fluctuations had a negative impact on revenue of SEK 32.8 million.
  • Casino revenue amounted to SEK 683.2 (617.8) million, an increase of 11 percent. 73 (72) percent of the total revenue in the second quarter was attributable to Casino.
  • Sportsbook revenue amounted to SEK 223.0 (206.4) million, an increase of 8 percent. A low sportsbook margin resulted in lower than expected revenues.
  • Mobile revenue amounted to SEK 383.1 (286.1) million, an increase of 34 percent. Mobile revenue now represents 41 percent of Group revenue.
  • Operating income amounted to SEK 158.3 (213.8) million and the operating margin was 17 (25) percent. Operating income was affected by unfavourable exchange rate fluctuations amounting to SEK 23.5 million.
  • Income before tax amounted to SEK 156.4 (212.3) million.
  • Net income amounted to SEK 146.4 (201.6) million, corresponding to SEK 1.06 (1.46) per share.
  • During the quarter, the number of active players was 563 247, which corresponds to growth of 58 percent.
  • Customer deposits in all of Betsson’s gaming solutions amounted to SEK 3 472.8 (3 116.6) million, an increase of 11 percent.
  • Europe-Bet, which was acquired in 2015, contributed by SEK 94.1 (-) million to revenue in the quarter, and by SEK 22.9 (-) million to operating income.

Interim period, January-June

  • Revenue increased 13 percent to SEK 1,935.5 (1,708.0) million.
  • Operating income amounted to SEK 408.4 (451.8) million.
  • Income before tax amounted to SEK 405.3 (448.7) million.
  • Net Income amounted to SEK 380.3 (425.7) million, corresponding to SEK 2.75 (3.08) per share.

Comment from Ulrik Bengtsson, CEO Betsson AB

“The results in the second quarter did not live up to our expectations. Many factors made the quarter challenging; primarily unfavourable currency effects, lower than average sportsbook margins and lower revenue in certain markets, partly due to regulatory changes. Betsson’s subsidiaries operate in a dynamic environment which is highly demanding. They have taken several actions in the past months in order to increase growth and thereby profitability. The sportsbook offering and functionality have been improved considerably, new exciting products have been launched and our casino has been upgraded. These actions will have effect in future quarters, and we have already in the end of the second quarter seen a strong uplift in active customers. The third quarter has started with daily revenue significantly above the average of the second quarter.”

Entire Interim Report

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