Unibet in loss-making UK for the long-haul
Chief executive Tjärnström predicts operator will break even soon if long-term strategy is continued
Unibet CEO Henrik Tjärnström (pictured) believes the company can find long-term value in the UK online gambling market despite revealing the company has yet to record a profit in the country.
Speaking with eGaming Review yesterday following the release of Unibet’s Q1 2014 financial results, Tjärnström said the operator would continue to implement its long-term UK strategy where it has high hopes for the future.
“The sportsbook push is paying off, but we’re not breaking even in the UK,” he said. Tjärnström also said the company was in a similar situation in Australia where it is planning a major push later this year.
“We will continue with our longer strategy, but we need to be smarter and more relevant. Additional growth is expected,” Tjärnström added.
Unibet has targeted the UK as an important market for the business and Tjärnström previously told eGR that the company was aiming for a top five position in the UK sports betting market.
The company’s UK focus comes as the Swedish operator’s revenue split between its two main markets, Western Europe and the Nordics, showed substantial change during the first three months of the year.
In Q1 2014 the Nordics accounted for less than 50% of GGR for the first time while revenues originating from Western Europe increased to 39% of total revenue.
“It’s a trend we expect to continue and grow quicker than before,” Tjärnström said.
“The Nordics were the early adopters of online gambling, so it’s only natural Western Europe will catch up,” he added.