9. Betsson Group (2018)
Financials: Q3 revenues increased 21% to SEK1.4bn with organic growth of 16% on product upgrades and core market focus
Strategy & impact: 2018 was a turnaround year with staff numbers cut and operations streamlined across the group. The focus now is on product improvements
Geographic reach: Nordics and Western Europe accounted for 78% of group revenues in Q3 and the World Cup period saw interesting traction in LatAm for the first time
Influence & leadership: Product still reigns and is based on in-house technology, while it is set to be a key player in Sweden’s re-regulated market[/su_box]
It’s been a strange couple of years for Betsson. While the operator has watched Nordic rivals Kindred and LeoVegas going great guns with consistent double-digit growth, Betsson has been in something of a transitional period. In short, it’s a business that was never in perpetual decline, but it was hardly firing on all cylinders either.
It’s in this context why group chief exec Pontus Lindwall, who replaced former CEO Ulrik Bengtsson following his departure last year, initiated its “back on track” company strategy. This masterplan to boost the Stockholm-listed operator’s fortunes includes improving products and performance, turning around recent growth trends in its core markets, and improving efficiencies. And Betsson’s recent numbers would suggest this strategy could well be starting to pay off.
In Q3 2018 the operator reported a 21% year-on-year increase in group revenue to SEK1.4bn (approximately £120m), with organic growth of 16%, driven by 22% growth in casino and 23% growth in sports betting. Profits were also strong, with EBITDA up 49% year-on-year on an improved margin of 29.7%. Meanwhile, for the nine-month period to 30 September, Betsson’s revenues were up 15% and EBITDA up 26%.
Betsson said the growth was down to the operator meeting its group strategy targets. This includes technology improvements, such as the roll-out of its OBG platform on mobile across its portfolio of brands, and a focus on Betsson’s core markets, with growth from the Nordics up 19% year-on-year. And the financial markets reacted positively to the company’s performance in the quarter with its share price rising from SEK66.5 to SEK80.85 in the space of a few days – although this has since fallen slightly at the time of writing.
Taking all the above into consideration, Betsson Group maintains its ninth place position in this year’s EGR Power 50, and its recent return to form means there is a fair bit of daylight between itself and LeoVegas.
That said, if Betsson seriously is “back on track” and fulfils the promise it has shown in stages this year, then there is no reason it can’t obtain a higher place in 2019.