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Betsson Revenue in the second quarter increased by 9 percent

BETSSON UPWARD TREND CONTINUES DESPITE A DIFFICULT SECOND QUARTER
 
Revenue in the second quarter increased by 9 percent.
 
The Swedish gambling group Betsson has issued its second quarter and half-yearly report, showcasing a continuing upward trend in performance and highlighting:
 
Second quarter:
 
* Revenue increased by 9 percent to SEK 935.4 (860.6) million. Exchange rate fluctuations had a negative impact on revenue of SEK 32.8 million;
 
* Casino revenue amounted to SEK 683.2 (617.8) million, an increase of 11 percent. 73 (72) percent of the total revenue in the second quarter was attributable to Casino;
 
* Sportsbook revenue was up 8 percent at SEK 223.0 (206.4) million, but a low sportsbook margin resulted in lower than expected revenues;
 
* Mobile revenue increased 34 percent amounted to SEK 383.1 (286.1) million, and now represents 41 percent of Group revenue;
 
* Operating income rose to SEK 158.3 (213.8) million and the operating margin was 17 (25) percent, but was adversely impacted affected by unfavourable exchange rate fluctuations amounting to SEK 23.5 million;
 
* Income before tax was SEK 156.4 (212.3) million;
 
* Net income amounted to SEK 146.4 (201.6) million, corresponding to SEK 1.06 (1.46) per share;
 
* During the quarter, the number of active players rose 58 percent to 563 247;
 
* Customer deposits in all of Betssons gaming operations amounted to SEK 3 472.8 (3 116.6) million, an increase of 11 percent;
 
* Europe-Bet, which was acquired in 2015, contributed by SEK 94.1 (-) million to revenue in the quarter, and by SEK 22.9 (-) million to operating income.
 
For the half year to end June 2016, the company reported:
 
* Revenue increased 13 percent to SEK 1,935.5 (1,708.0) million;
 
* Operating income came in at SEK 408.4 (451.8) million;
 
* Income before tax amounted to SEK 405.3 (448.7) million;
 
* Net Income of SEK 380.3 (425.7) million was posted, corresponding to SEK 2.75 (3.08) per share;
 
Chief executive Ulrik Bengtsson reported to shareholders:
 
"The results in the second quarter did not live up to our expectations. Many factors made the quarter challenging; primarily unfavourable currency effects, lower than average sportsbook margins and lower revenue in certain markets, partly due to regulatory changes.
 
"Betssons subsidiaries operate in a dynamic environment which is highly demanding. They have taken several actions in the past months in order to increase growth and thereby profitability.
 
"The sportsbook offering and functionality have been improved considerably, new exciting products have been launched and our casino has been upgraded. These actions will have effect in future quarters, and we have already in the end of the second quarter seen a strong uplift in active customers. The third quarter has started with daily revenue significantly above the average of the second quarter."



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