Betsson continues to push beyond the Nordics
Multi-brand operator accelerates geographic expansion with less developed egaming territories high on the list
An international regulatory update has become something of a tradition during Betsson’s quarterly results, and last week’s Q3s were no different, with CEO and president Pontus Lindwall giving his views on markets as diverse as the Netherlands, Georgia and China.
Betsson has stepped up its efforts to become a truly global player in 2015, most strikingly via its £54m acquisition of Georgia-facing Europe-Bet in the summer.
The push is beginning to reflect in the firm’s geographical revenue split, which on the B2C side saw 57% of revenues derived from the Nordics during the quarter, versus 73% for the same period last year.
The 12% of revenues coming from outside Europe were almost entirely comprised of the £5.8m contributed by Europe-Bet (which falls under its ROTW revenue stream). However there was also growth in non-Nordic European markets, which now account for 31% of B2C revenues, up from 26% last year.
“It is a result of our strategy to grow more outside of the Nordic markets,” Lindwall said. “The Nordic markets are very well penetrated, but there are markets outside of the Nordics which are less developed and where we can grow more strongly,” he added.
Betsson has so far taken a dual-strategy to market diversification, investing in established and competitive jurisdictions while also pushing into newer territories.
The firm continues to invest in its now UK-facing Betsafe brand, recently becoming the official betting partner of English Premier League club Manchester City.
Meanwhile Lindwall said the firm was preparing to apply for a licence in Portugal and expects to be operating there next year.
But its move into Georgia also displays an appetite for underdeveloped jurisdictions which can power above-market growth.
Lindwall said the lessons that Betsson learns in Georgia might tempt it to invest in neighbouring markets.
“We look at many different markets in terms of gaming legislation,” Lindwall said. “We can see other countries in this region are regulating. Georgia is at the forefront so it is a natural starting point for us, but other countries are now looking at regulation.
“By having a foothold in Georgia we learn how to operate in this region [â¦] and this will be useful in other markets in this [region],” he added.
Lindwall also touched on Asian markets, where Betsson has a small presence as a technical supplier and advisor to a Chinese firm, saying the operator was “certainly interested” as long as the right regulation is introduced.
The operator will be hoping this sense of adventure will continue to drive growth, with the firm reporting its highest ever quarterly revenues on Thursday, which were up 24% to £75.7m.