Betsson revenues grow as 2018 marks a “turning point”
Betsson Group has issued its 2018 quarter four (Q4) interim report, with profits at the group growing for the third consecutive quarter.
Revenues grew 14% at the group to £121m with 12% organic growth. Casino revenue grew particularly strongly, with a 24% increase on the quarter, 20% of which was organic growth. On the year, those figures were a 15% rise in revenue to £471m (11% organic growth).
Operating income grew by 56% to reach £218m compared to the previous quarter, a 35% rise on the year.
However, sportsbook revenue at the group fell. Sportsbook revenue was down by 5% on the quarter at £359m. Turnover at the sportsbook grew by 6% and organic growth was 14%.
CEO Pontus Lindwall said the firm is reaping the rewards of its back on track programme that was announced a year ago, saying:
For the third consecutive quarter Betsson delivered all-time high revenue and EBIT and proved 2018 to be a turning point. I am happy to see how we have been able to show continuous results from the ”Back on track” program during the year. A year ago we announced the plan that involved the entire organisation. Since then, the focus has been on the development of products and technology to continue to deliver the best customer experience. At the same time, there has been a strong determination to improve efficiency in marketing and in internal processes to increase profitability.–Pontus Lindwall, Betsson CEO
The firm spent much of 2018 preparing for the upcoming liberalisation of the Swedish market, which came into effect on 1 January 2019. Lindwall said that Betsson’s financial strength was a great asset during this period and for the future, and that he hopes to see channelisation of around 95%, which would benefit both shareholders and customers.
However, with new operators entering the Swedish market, market conditions have changed dramatically and this will affect the firm. Lindwall stated that customer activity is inline with expectations so far in 2019, but the new conditions, together with high bonus costs, mean that it has been a challenging start to the year.
You can read the trading update in full at Betsson’s website.