EGR Power 50 2019: Betsson (10)
10. Betsson (09)
FINANCIALS: Q3 revenues fell 11% year-on-year with the group pointing to “continued weakness” in the Netherlands and Sweden
STRATEGY & IMPACT: The Stockholm-listed company is aiming to leverage its live casino assets in the UK and own proprietary tech across casino and sports
GEOGRAPHIC REACH: Nordics and Western Europe account for the majority of group revenues with Turkey providing a chunky percentage of EBITDA
INFLUENCE & LEADERSHIP: The firm is positioning itself at the forefront of responsible gambling messaging, including the recent launch of ESG site onebetsson.com, and remains a leading force in the Nordics
Like many Nordics-facing operators, 2019 has not been overly kind to Betsson. The company’s share price shows a steady downward trend since January, following regulatory issues in its home Swedish market and widespread payment blocking in Norway. Such is the current stock performance that there are persistent rumours about the firm being a takeover target for private equity, particularly from the other side of the pond. As one recent Betsson employee put it to EGR though: “These rumours have been around for years and nothing has happened yet.”
On a regional basis, revenues from Betsson’s Nordic markets fell by 29% during Q3 as the firm essentially stopped marketing in Sweden amid concerns about the growing limitations on operators, especially compared to the black market. The issues in Norway also impacted costs as payment processing fees sky rocketed. Revenues from Betsson operations in Western Europe decreased by 11% year-on-year during the third quarter as it pulled back from the UK and stopped actively operating in the Netherlands to prepare for licensing in 2021.
Elsewhere, Betsson still plans to close its UK offi ce by the end of this year, moving the operations from inside the old NetPlay London TV studio back to Malta, in line with a plan to focus on digital rather than the TV casino assets acquired via the NetPlay acquisition. The firm has closed smaller brands like Vernons Casino and launched the new live casino-focused brand liveroulette.com.
The good news, if you can call it that, is that Betsson is by no means alone in facing these struggles in the Nordics, the UK and the Netherlands. It means it has fallen only one place on the Power 50 list this year, and it’s worth mentioning too that it maintains some key strategic advantages including owning its own platform and tech. The firm will look to leverage that in 2020, including the development of its proprietary sportsbook into a B2B off ering, expected to be made available to external customers in 2020. As for next year’s edition of this list, you suspect Betsson may find itself back in a similar position with rumours still swirling about its ownership.