Betsson revenues jump as platform migration ends
Swedish operator brings all Betsson.com products onto a common platform as focus switches to mobile
Swedish operator Betsson has posted sharp rises in revenues and profits following the successful migration of all its products onto a common platform, the company has announced in its results for the three months ended 30 June 2013.
The second quarter saw overall revenues increase year-on-year by 19% to SEK579.2m (£60m) while deposits in all of Betsson’s products amounted to SEK2.01bn a rise of 34%.
Gross sportsbook turnover reached SEK3.47bn “ a hike of 26%, with an increase in live betting revenues of the same amount contributing to the rise. Sportsbook margins amounted to 6.5%, an increase from 4.6% in Q2 2012, with gross profits rising some 86% to SEK67.6m.
Profit in casino during the second quarter amounted to SEK316m representing 66% of the group’s total gross profit, however gross profit in poker during the quarter came in at SEK22m, down from SEK25.4m last year.
Betsson CEO and president Magnus Silfverberg praised the “stable organic growth” and said the successful platform migration would allow further progress in the coming months.
He told eGaming Review this morning the move allows the operator to focus on optimising its site, both internally and from a customer experience standpoint including improved functionality and payment solutions.
Silfverberg added that the operator is ramping up its efforts in the mobile space, conceding that it “has some catching up to do” despite now offering its sportsbook, casino and scratch cards on one mobile product.
Today’s results reveal that mobile currently contributes around 9% of all revenues, which is an increase from 8% in Q1. However, mobile penetration varies significantly between the brands withBetsafe – the Nordic operator acquired in 2011 – boasting the largest share of 16%, the operator said.
“Betsson continues to make investments in order to optimise its operations,” Silfverberg said. “[The migration to the new platform] has strengthened the mobile offering and enables an advanced further development of the gaming experience as well as cost-efficient operations. At the same time Betsson delivers stable organic growth and one of the market’s strongest profit margins.”
Betsson’s launch in Italy, meanwhile, is still proving a stiff challenge according to Silfverberg, who said the operator had found a model to acquire customers in the jurisdiction “at a sustainable price”. “There is growth month by month but we are still a very low level at the moment,” he said.
The operator launched its dot.it operation under the StarCasino brand in July 2012, five months after being awarded an egaming licence.