Betsson Q3 revenues drop 11% on Sweden and Netherlands struggles
Operator confirms in-house sportsbook to be offered to external firms in 2020
Betsson Group has reported an 11% year-on-year fall in revenues for Q3 2019, with the group pointing to “continued weakness” in the Netherlands and Sweden.
Group revenues in the period were SEK 1,275.2m (£103.2m), with online casino down 12% YoY to SEK942.2m (£76.2m) and sportsbook down 7% YoY to SEK314.6m (£25.4m) despite an a 4pp increase in margin to 7.8%.
Company operating income (EBIT) fell by 38% YoY during the quarter to SEK212.5m (£17.1m), while Betsson’s EBIT margin fell from 23.8% in Q3 2018 to 16.7%.
Betsson CEO Pontus Lindwall said Q3 posed challenges for the company as it had done for several operators within the sector.
“Betsson’s ambition is to outgrow the market in the long term, organically and through acquisitions,” Lindwall said. “Although I am not happy with the development during the last two quarters, we are well prepared, through the initiatives we have taken, when the right business opportunity realises.”
Mobile casino revenues fell by 3% YoY to SEK666.7m, accounting for 71% of total casino revenues received during the quarter. Mobile sportsbook revenues fell by 4% YoY to SEK253.7m and accounted for 81% of total sports betting revenues received during Q3.
On a regional basis, revenues from its Nordic markets fell by 29% YoY during Q3 to SEK476.7m. Lindwall said the Swedish market prevented large marketing investments, with activities “reduced and reallocated” to other better returning markets.
“However, we are certain the Swedish market will improve, and we stick to our long-term ambition to increase our share in this re-regulated market,” Lindwall said.
Revenues from Betsson operations in Western Europe decreased by 11% YoY during the quarter to SEK396.7m.
Betsson said its business its steps to be ready for regulation in the Netherlands were having short-term negative financial impact but the measures “ensure a sustainable outlook for the Dutch business”.
Revenues from Central & Eastern Europe and Central Asia (CEECA) grew by 33% YoY to SEK319.6m during the third quarter of 2019. In addition, locally taxed revenues increased by 41% YoY during the quarter to SEK456.6m thanks to increased revenues from Sweden and Italy.
In addition to releasing its financial results, Betsson confirmed it expects to make its in-house developed sportsbook product available to external customers in 2020.