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Betsson Q2 Trading Update
Tuesday June 28,2016 : Q2 TRADING UPDATE FROM BETSSON
Second quarter earnings and revenue impacted by lower sportsbook results and exchange rate fluctuations.
The Betsson gambling group has issued a trading update for Q2-2016, advising that group revenues are estimated to be between SEK 920 million and SEK 945 million, and the operating profit (EBIT) between SEK 140 million and SEK 175 million.
However, lower sportsbook revenues and unfavourable exchange rate fluctuations have had a negative impact on group revenues and earnings for the second quarter.
Sportsbook revenues are estimated to be between SEK 205 million and SEK 230 million, compared to SEK 206.4 million in Q2 2015. The lower than expected revenue is the result of lower turnover in multiple markets, as well as losses in a strategic market.
In addition, Betsson has closed a number of European markets during the past twelve months, as a consequence of a more conservative stance on what markets to accept players from. The restrictions also reflect the impact of changes in the regulatory landscape and unclear tax regulation.
Exchange rate fluctuations are estimated to have a negative impact on revenues of approximately SEK 30 million. The decrease in revenue has direct impact on earnings as a large proportion of costs are fixed costs.
Ulrik Bengtsson, president and CEO of Betsson AB reported:
"April and May were challenging months for us in terms of sportsbook margin, but June looks better and activity is in line with expectations. The strong inflow of new customers during the UEFA Euro 2016 will benefit us going forward. Betssons ambition to increase the share of revenue from locally regulated markets and continue to grow our business long-term, organically and through acquisitions, remains."
Betsson will publish its report for the second quarter on July 21, 2016.
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