Acquisitions treble Betsson sports turnover
Betsafe integration close to completion; Nordic Gaming Group buy already beginning to reap rewards.
The acquisition of Betsafe and Nordic Gaming Group in the last year has helped Betsson treble its B2C sportsbook turnover to SEK731.1m for the three months ended 30 June.
The figure represents a 242% year-on-year increase, while Q2 revenues were up 44% year-on-year to SEK486.2m, although still more than SEK150m shy of the traditionally higher Q1 figures, and B2C sportsbook turnover for the first half of 2012 rose 207% to SEK1.38bn.
Betsson’s acquisition of Nordic Gaming Group was agreed in mid-April and finalised soon afterwards, with the company contributing 10 days worth of results during the quarter, while Betsafe “ acquired in June 2011 “ contributed to the increase in revenues for the quarter.
“It’s continuing to develop well, and we have made good effort this quarter to move it to the common platform and develop the Betsafe brand on common platform,” CEO Magnus Silfverberg (pictured) explained.
Sportsbook margins, however were lower compared to the corresponding period in 2011 at just 4% with Silfverberg noting in an analyst call in Stockholm this morning that the figure was “Maybe even lower before the European Championships.”
Meanwhile B2B sportsbook margin for the half-year came in at just 2.6%, down by one third compared to H1 2011, and B2B sports gross profit was down 15.6% year-on-year for the first half.
Silfverberg anticipates “A 20-30% boost in sportsbook activity in Olympic period compared to a normal July and August,” although Silfverberg explained this was “Based on judgment and seeing the number of events we can put up… but we have no empirical evidence of it yet.”
In this week’s eGaming Review poll we ask whether readers believe the Olympic Games will have a significant effect on the online gambling industry.
Silfverberg confirmed the operator had applied for a licence in the northernmost German state of Schleswig-Holstein, adding that “Betsson agrees with criticism of the [German state treaty] but we will evaluate and see if it effects us and see how Betsson will act in the other 15 Bundesländer in the future.”
He also revealed that Betsson has no intention of applying for a Spanish licence as it stands, having declined to apply ahead of this June’s market opening, explaining: “We think the tax level in Spain is too high as is now and at same time, with the small business from our side, it made our decision easy.”
In Italy, meanwhile, the company anticipates a higher marketing outlay in Q3 having seen its dot.it launch delayed until the end of the second quarter.
Betsson is currently optimistic, however with regards to regulatory developments in Sweden and the Netherlands, forming an industry group in the former along with fellow operators Betfair, Bonnier and Paf in order to influence potential legislation in Sweden.
“The political parties seem to be agreeing we should implement a licensing system but we haven’t heard clear views on the topic from the finance department. Despite that there should potentially be new gaming law before next election,” said Silfverberg, perhaps referring to the pledge earlier this month from minister Peter Norman.
In relation to the situation in the Netherlands, where the issue of licences has long been promised but never truly realised, the CEO said: “We are in discussions with the finance ministry with regard to licences and are positive about the licensing system Holland is presenting.”
The CEO added in a statement this morning: “Betsson is strengthening its position as a sportbooks operator through a broader sportsbook offering with even more mobile solutions. In addition, several technical development projects have been undertaken with the purpose of securing future growth and profitability.”
In the days after the end of Q2, Betsson’s newly formed spinoff company Angler Gaming listed on the Aktietorget stock exchange. It will focus on non-core markets in Africa, South America and Europe.