Betsson eyes Dutch market as Q1 revenues rise 10%
Mobile casino and sportsbook revenues lead the rises for the Nordic-focused operator
Online gambling operator Betsson revealed its group revenues increased by 10% year-on-year during Q1 2019, with revenues topping SEK1,330.6m (£1.13bn).
Company EBITDA increased by 22% during the quarter, rising to SEK345.8m, while operating profits rose 21% to SEK255.2m in Q1 2019.
Online casino revenues grew by 10% y-o-y during Q1, increasing to SEK1,012.8m, while mobile casino revenues topped SEK 664.6m, a y-o-y increase of 25% compared to the same period of 2018. Company sports book revenues rose 13% during the first quarter of 2019 to SEK297.8m, with mobile sportsbook revenues rising to SEK239.4m, an increase of 31% on Q1 2018 figures.
Revenues from Betsson’s Nordic operations grew by 2% to SEK580.6m, while revenues from western Europe rose 10% to SEK430.8m. Company revenues from the central & eastern Europe and central Asia markets rose by 15% y-o-y to SEK248.2m.
Despite the rises, Betsson CEO Pontus Lindwall said both its revenues and operating profits had both been “negatively impacted” by new regulations in the Swedish market. However, Lindwall affirmed Betsson’s commitment to Sweden, citing it as an “important” market for the business in the long-term.
“The market has experienced a challenging start; however we believe it is too early to draw any long-term conclusions,” Lindwall added.
In addition to citing the Swedish market, Betsson hailed the passage of the Dutch Remote Gaming Bill into law as a “positive milestone” for consumers, which will also contribute towards local regulated revenues.
Betsson confirmed that all of its operational subsidiaries have taken “swift measures” to be in the best position” to obtain a Dutch licence at the “earliest possible time”. Measures cited included adjustments to company products, rebranding and payment solutions.
“Whilst we have short-term negative impact on revenues in the Netherlands (one contributing factor reflected in the trading update), the measures ensure a sustainable outlook for the Dutch business and our long-term investments,” Lindwall added.
Analysing the results, Regulus Partners highlighted Betsson’s need to keep ahead of the so-called regulatory “salami slicer” and the repositioning of its products to ensure effectiveness in more mature markets.