Betsson targets Netherlands with 130m online casino purchase
Swedish operator prepares for 2015 opening of Dutch market with acquisition as it reports full-year profit growth of 12%
Betsson has prepared the ground for an assault on the soon-to-be regulated Dutch market after acquiring local online casino operator Oranje and Kroon for around 130m.
The deal hands the Swedish operator a strong foothold in both the Netherlands and Belgium markets through the casino sites Oranje Casino and Kroon Casino as well as its affiliate business of more than 300 domains.
News of the deal came as Betsson presented its full-year results for 2013 in which the company posted annual revenue growth of 12% to SEK2.5bn (283m).
According to Betsson, Oranje and Kroon’s 2013 revenues amounted to 32.5m with profit after tax of 21.1m and currently have a combined customer base of around 209,000.
The package saw Oranje and Kroon Casino holding company Class One Holding paid 100m up front through a mixture of cash and shares while an additional payment expected to be in the region of 30m is dependent on ongoing legislation.
Following the deal, Betsson expects more than 25% of future profits will be derived from locally regulated markets.
“With the acquisition of Oranje and Kroon Casino Betsson gains a strategic position in the Netherlands and will be one of the largest operators in the Dutch gaming market,” Magnus Silfverberg (pictured), Betsson CEO and president, said.
Today’s full-year results were boosted by strong B2C sportsbook revenues which climbed from SEK3.7bn (418m) to SEK5bn (566m) with gross profits up 34% year-on-year to SEK288m (33m).
Gross profit across the business also rose 12% from SEK1.9bn (215m) to SEK2.1bn (238m) while net income increased from SEK548m (62m) to SEK596m (67m).
Betsson also reported growth in its mobile channel during the fourth quarter with total revenues of SEK81m (9m), which represented 12% of the total and a 16% sequential increase.
Poker continued to struggle with revenues down roughly 18% from SEK116.7m (13.2m) to SEK99.2m (11m), a fall the company attributed to a “decreased activity in poker networks and to the fact that Betsson terminated its cooperation with unprofitable poker customers”.