Betsson profits down on Netplay integration issues
Operator recorded 21% dip in EBITDA due to increased betting duties and operational setbacks
Betsson this morning reported group revenue growth of 11% to SEK 1,180.6m (£110m) for Q3 2017, but a drop in profits.
EBITDA was down 21% to SEK 216m (£20.1m) due to increased betting duties and a set-back in the integration of the recently acquired Netplay brand.
Speaking to investors this morning, group CEO and president Pontus Lindwall said: “The turnaround of NetPlay is behind schedule, when we acquired it we said the company was a long-term acquisition and we should look at it on a three year basis, but we’re behind on that already.
CEO, Pontus Lindwall
“It’s had a short-term impact on the EBIT, but hopefully not long-term,” Lindwall added.
Elsewhere, sportsbook revenues dipped 8% to SEK 275.1 (£25.6) year-on-year, due to currency fluctuations in Turkey, and a lower margin.
Group revenues were buoyed by a 19% increase in casino revenues to SEK 871m (£81m), which Lindwall attributed to product improvements and record customer deposits.
“The group is committed to continue to develop the product offerings and to achieve good returns on marketing spend in order to further capture growth,” Lindwall said.
“We are not satisfied with the overall growth in the quarter and Betsson has taken action to improve performance.”
During the period, former CEO Ulrik Bengtsson stepped down from his position following a dispute with the board. Lindwall stepped down from the board to take over.