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Betsson First Quarter Report

Focuses on growth in casino and mobile developments
Online gambling firm Betsson AB delivered a mixed bag of first quarter 2013 results impacted by, amongst other factors, lower activity following a record pooled jackpot hit at a competitor website and an increase in marketing spend for newly acquired NGG.
Key performance indicators include:

  • Revenues amounting to SEK 638.7 million (Q1/2012: SEK 536.1 million), equating to an increase of 19 percent.
  • Operating income of SEK 161.1 million (Q1/2012: SEK 174.1 million), down 7.4 percent.
  • A lower than expected gross profit in Casino amounting to SEK 325.4 million (Q1/2012: SEK 308.3 million). Explained by lower activity after the fall out of a pooled record high jackpot at end of January at a competitor site.
  • Marketing amounted to SEK 199.4 million (Q1/2012: SEK 135.2 million).
  • Gross turnover in Sportsbook, including all gaming solutions, amounted to SEK 3,873.6 million (Q1/2012: SEK 2,644.1 million), representing an increase of 47 percent.
  • Sportsbook margin after free bets was 6.7 percent (Q1/2012: 7.2 percent).
  • Income before tax amounted to SEK 160.1 million (Q1/2012: SEK 171.0 million).
  • Net income amounted to SEK 151.9 million (Q1/2012: SEK 162.3 million), down 6.4 percent.  Corresponds to SEK 3.54 (Q1/2012: SEK 3.91) per share.
  • Customer deposits in all Betsson’s gaming solutions amounted to SEK 2,113.9 million (Q1/2012: SEK 1,468.6 million), representing an increase of 44 percent.

“Betsson continues to prepare for the re-regulations by investing in marketing and in more cost effective operations,” commented Magnus Silfverberg, President and Chief Executive Officer for Betsson.
“Due to previous investments in among other things mobile solutions, we have seen organic growth in both business-to-business gross profit of 16 percent and in sportsbook turnover of 26 percent.
“Meanwhile, the company has full focus on increasing the growth in casino, for instance through further mobile development. Altogether, Betsson sees good growth opportunities both in the short and long-term and plans to maintain its position as one of the world’s most influential gaming operators.”

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