Betsson revenues up 26% on Nordic and Western Europe gains
Operator reveals double-digit growth for sportsbook and casino with regulated revenues hitting 24%
Betsson this morning reported a revenue increase of 26% to SEK 1,177m (£109m) driven by strong casino growth and market share gains in the Nordics and Western Europe.
Casino spiked 28% in Q2 amounting to SEK 876.6m (£81.2m). Revenue for the Nordics increased by 28% to SEK 558.7m (£51.7m), while Western Europe grew 69% to SEK 351.8m (£32.5m).
Mobile revenues increased 63% to SEK 876.6m (£81.2m), accounting for 53% of the operator’s total income.
Despite overall sportsbook revenues increasing 15%, turnover suffered a 4% decline against last year’s Euro 2016 tournament.
CEO Ulrik Bengtsson attributed it to currency fluctuations, with its B2B partnership with Realm Entertainment taking the brunt of the hit.
Improvements to the vertical continue with a new mobile product developed on Betsson’s proprietary OBG platform to be rolled out in Q4.
“We are investing in our sportsbook to get back to strong growth. This is a good testament to the results of that development,” Bengtsson commented.
Elsewhere, regulated revenues grew to 24%, a 4% boost from the last quarter. Bengtsson said increasing regulated revenues remained one of Betsson’s core values despite increased taxes making a dent in profits.
Betsson said its core European markets were expected to grow 8.5% between 2017 and 2021.
In an analyst note this morning, Regulus Partners said: “With over 75% of revenue from .com sources and material exposure to Sweden, Turkey and other potentially regulating jurisdictions, Betsson’s future will be decided by the potentially painful pace and shape of regulatory change.”