Revenue increased by 26% and amounted to SEK 1,177
Post# of 301275
Quarter, April-June 2017
- Organic revenue growth was 15 percent.
- Casino revenue increased by 28 percent and Sportsbook revenue by 15 percent.
- Region Nordics grew by 28 percent and Region Western Europe by 69 percent.
- Operating income (EBIT) amounted to SEK 206.9 million, an increase of 31 percent. In constant currency, EBIT was SEK 224.4 million.
- Sustainable revenue increased by 58 percent and betting duties amounted to SEK 53.5 (31.3) million.
Period, January-June 2017
- Revenue increased by 18 percent to SEK 2,279.4 million. Casino revenue increased by 26 percent.
- Operating profit amounted to SEK 447.8 (408.4) million, corresponding to growth of 10 percent.
- Profit before tax amounted to SEK 427.0 (405.3) million.
- Net profit amounted to SEK 400.5 (380.3) million, corresponding to SEK 2.89 (2.75) per share.
- Operating cash flow amounted to SEK 447.3 (541.9) million.
Key data:
| SEK m | Q2 2017 | Q2 2016 | ∆ | Jan-Jun 2017 | Jan-Jun 2016 | ∆ | Jan-Dec 2016 |
| Revenue | 1 177,5 | 935,4 | 26% | 2 279,4 | 1 935,5 | 18% | 4 117,3 |
| Gross profit | 851,1 | 694,6 | 23% | 1 657,4 | 1 440,4 | 15% | 3 078,0 |
| Operating income (EBIT) | 206,9 | 158,3 | 31% | 447,8 | 408,4 | 10% | 946,4 |
| EBIT margin | 17,6% | 16,9% | - | 19,6% | 21,1% | - | 23,0% |
| Net income | 186,1 | 146,4 | 27% | 400,5 | 380,3 | 5% | 878,0 |
| Earnings per share (SEK) | 1,34 | 1,06 | 26% | 2,89 | 2,75 | 5% | 6,34 |
| Operating cash flow | 242,4 | 211,9 | 14% | 447,3 | 541,9 | -17% | 1 168,5 |
| Casino revenue | 876,6 | 683,1 | 28% | 1 699,5 | 1 352,3 | 26% | 2 907,8 |
| Sportsbook turnover | 5 755,0 | 6 008,7 | -4% | 11 761,1 | 12 726,4 | -8% | 24 392,1 |
| Sportsbook revenue | 255,6 | 223,0 | 15% | 505,9 | 515,8 | -2% | 1 080,4 |
| Sportsbook margin after free bets | 6,4% | 5,7% | - | 6,2% | 5,9% | - | 6,5% |
| Deposits | 4 056,3 | 3 472,8 | 17% | 7 845,5 | 6 989,4 | 12% | 14 457,6 |
| Active players, 000’s | 551 | 563 | -2% | - | - | - | - |
Message from the CEO, Ulrik Bengtsson:
“The revenue growth in the second quarter was 26 percent, with an organic growth of 15 percent. Betsson continues to gain market share, both in in the highly competitive Nordic region and in Western Europe. The continuous product development is clearly paying off as both casino and sportsbook have developed strongly. Operating Income (EBIT) grew by 31 percent. Operating income shows strong growth, despite increased betting duties, a continuing currency headwind and increased marketing expenses, again showing the scalability of the business model over time. It is also a good indication of the stability and balance of the business. Betsson is larger and a significantly more well-balanced business with higher growth rates, compared with a year ago.
Product development investments show results In 2016, we made a step change in our product development and launched a very successful new mobile Casino based on Betsson’s proprietary OBG framework in the third quarter, resulting in three consecutive quarters with Casino growth above 20 percent. We also made some significant improvements to the sportsbook, including increased market depth, more simultaneous live events, improved functionality such as cash-out, and most recently, the launch of an improved racing offer. This has enabled the strong sportsbook growth of 48 percent in the Nordics. The next big initiative is a new mobile sportsbook developed on OBG, which is currently being rolled out. We believe we will see the full effect of this in the sportsbook revenue in the fourth quarter and onwards.
Betsson continues to deliver on its strategy with an increasing share of sustainable revenue. The development of the technical platform continues, in order to outgrow the market also in the future, and to absorb the increasing cost of regulations. Betsson will also continue to be active in the consolidation of the online gaming market.
The daily revenue in the beginning of the third quarter was, as expected, much higher than the average daily revenue for the full third quarter 2016. Operating income in the third quarter last year was very strong for Betsson, partly due to a strong finish to Euro 2016 with a higher than average sportsbook margin. This year Betsson will, as previously indicated, invest more in marketing to capitalise on the improved product offering and the momentum we have in the Nordics and Western Europe.”
Information on presentation Betsson invites media, analysts and investors to Betsson's office at Regeringsgatan 28, Stockholm, Sweden, on Wednesday, 19 July, 2017 at 09:00 CET. The presentation will also be available via webcast and conference call. CEO and President Ulrik Bengtsson will present the report. The presentation will be held in English and followed by a questions and answers session.
To participate by phone, please dial: UK: +44 2033645374 SE: +46 850556474 US: +1 8557532230
To watch the webcast of the presentation, visit www.betssonab.com or http://edge.media-server.com/m/p/pfzjeujt
For more information, please contact Ulrik Bengtsson, President and CEO +46 (0) 8 506 403 00
Fredrik Rüdén, CFO +46 (0) 8 506 403 00, fredrik.ruden@betssonab.com
Pia Rosin, VP Corporate Communications +46 (0)736 00 85 00, pia.rosin@betssonab.com
This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 CET on 19 July 2017.
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