Betsson’s “back on track” plan helps Q3 revenues climb 21%

Betsson Group has reported a 21% year-on-year rise in revenues for the third quarter of 2018, citing a combination of “product improvements and a more efficient marketing spend”.

Group revenues for the quarter topped SEK 1,426.8m (£121m), with organic growth of 16%.

EBITDA also increased during the quarter, rising by 49% to SEK423.5m (£36m) with an increased EBITDA margin of 29.7%.

Betsson CEO Pontus Lindwall hailed the company’s progress during the quarter. “We continue to execute on the “back on track” plan which includes a number of product and technology improvements, additional efficiencies and focus on core markets. The fourth quarter has begun with daily revenues higher than the average daily revenue for the full fourth quarter last year,” he said.

Sportsbook revenues grew by 23% YoY during the period to SEK338.9m (£28.8m), with the company attributing this to activity during the FIFA World Cup. Revenues from online casino activities rose by 22% to SEK1,066.3m (£90.8m).

Western Europe continued to be a strong revenue driver for the business, with Q3 revenues of SEK442.6m (£38m), a rise of 26% year-on-year. Betsson’s home market of the Nordics reported revenue growth of 19% year-on-year, with Q3 revenues rising to SEK668.2m (£56.9m).

Betsson was one of 55 egaming operators applying for a licence to operate in the re-regulated Swedish market and confirmed it expects its marketing spend “to increase as online gaming licences are introduced in Sweden.”

Lindwall also said the company remains committed to expanding its operations in the Netherlands, despite its subsidiary Corona receiving a €300,000 fine from Dutch regulators in August for offering egaming without a Dutch licence.

Betsson has appealed against the decision, with Lindwall adding: “Betsson sees the Netherlands as an important market long-term and has the ambition to channel Dutch customers into the licenced system when the market re-regulates.”