Betsson achieves record revenue in Q2
The Swedish operator saw revenue increase 20 per cent year-on-year in an “extraordinary period.”
Sweden.- Betsson has announced that it achieved record quarterly revenue of SEK1.53billion (€149.5million) in the second quarter despite “challenging” conditions wrought by the Covid-19 pandemic.
The results represents growth of 20 per cent year-on-year, up from SEK1.28billion for the same period in 2019.
Most of the growth came through the online casino business, which saw revenue climb 40 per cent to SEK1.29billion – representing 84 per cent of all revenue for the quarter.
That more than made up for the 34 per cent drop in sportsbook revenue, which could be expected with betting severely limited through the cancellation of sports.
Sportsbook revenue for the quarter totalled SEK226.5million, and revenue from other products rose 6 per cent to SEK20.1million.
The company said the increase in online activity would benefit the business in the short and long term.
Betsson’s President and Chief Executive, Pontus Lindwall, said: “The second quarter was strong and followed the positive trend from the start of the year despite market challenges during this extraordinary period.
“The pandemic had an immediate effect on the company from March onwards. We responded quickly and decisively to make changes in the offer, and I am particularly pleased to see the strong performance in casino.
“From March to date, we have seen many changes in habits of how people work, interact, shop and enjoy entertainment, many enabled by advancements in technology and the use of digital devices.
“We believe the ongoing transition from offline to online has been further accelerated as a consequence of the global lockdowns. This will benefit the strategic direction of our business both short and long term.”
The company saw substantial growth across its operations but particularly in Western, Central and Eastern Europe and in Central Asia.
Western Europe accounted for the largest portion of the takings at 36 per cent of total revenue, coming in at SEK550.2million. The Nordic countries generated SEK485million (32 per cent of all revenue).
Operating profit rose by 11 per cent to SEK217.7million, while operating expenses for the quarter increased by 12 per cent to SEK740.8million, mainly in marketing expenses.
Personnel expenses rose 11 per cent as the company hired new people for tech development and brought in 60 employees through its acquisition of Gaming Innovation Group’s B2C assets.
Revenue for the first two quarters combined was up 13 per cent year-on-year to SEK2.95billion, and net profit increased 5 per cent to SEK422.5million.
Looking ahead to Q3, Betsson said average daily revenue up to July 16 was up by 35 per cent compared to 2019.
Lindwall said: “The immediate outlook is naturally uncertain, however Betsson is in good shape and we are in it for the long term.
“Our proprietary technology is a strategic advantage, our diversification in markets, verticals and brands makes us resilient to market fluctuations and our financials are rock solid. This makes me optimistic about the prospects for Betsson.”
Bettson last month launched an appeal against a €2million fine in Sweden for unauthorised promotions.
