Casino drives Betsson Q1 revenues up 7%
Group sportsbook and casino growth help negate unfavourable currency exchange headwinds
Betsson has reported a strong start to 2014 with revenues for the first three months rising 7% year-on-year to SEK686m (£62m) following strong growth in the Swedish operator’s sportsbook and casino divisions.
Casino continued to be the major contributor of gross profit after it posted a figure of SEK372m, a 14% increase on Q1 2013 which accounted for 64% of overall Group profits.
Gross profit from sports betting amounted to SEK176m, an increase of 7%, however poker continued to decline with profits of just SEK23.4m at a loss of 24% compared to the same period last year.
Mobile penetration also grew to 15% from 12% sequentially, although this is still some way behind the market leaders.
The company said its revenues had been impacted by unfavourable currency movements which amounted to a loss of SEK38m, when compared with the rates applied in the comparative figures last year.
Taking this into account, Betsson said its adjusted revenue growth rate would have been 13% with 10% of this due to organic growth.
The company completed the acquisition of Netherlands and Belgium-facing brands Orange and Kroon on 4 March and these businesses contributed SEK23.4m in revenues and SEK14.4m in operating income during the remainder of the accounting period.
The Group’s B2B division contracted by 12% after gross profits fell from SEK165 to SEK145, a fall the company attributed to the transfer of its recently acquired Automaten brands to B2C.
“An organic growth of 12% in casino, as well as a good growth in sportsbook, means that Betsson is gaining market share,” said Betsson CEO Magnus Silfverberg.
“At the same time, the mobile penetration has increased from 12% to 15% over the previous quarter. This shows that the ongoing initiatives in personalised real-time communications, digital marketing, search engine optimisation and mobile development is taking effect,” he added.