ROBUST FULL YEAR RESULTS FROM BETSSON
Investment in product and acquisitions expected to pay dividends in 2017.
Betsson reported robust full year 2016 results delivering a strong performance and outstripping growth in its largest market, the Nordics.
Key performance highlights for the 12 months ending December 31, 2016 were:
– Group Revenue increased by 11 percent to SEK 4,117.3 million (2015: SEK 3,722.0 million).
– Casino revenue, which constitutes 71 percent of Betsson's total revenue, grew 14 percent.
– Operating income amounted to SEK 946.4 million (2015: SEK 886.4 million), and the operating margin was 23 percent (2015: 23.8 percent).
– Net Income amounted to SEK 878.0 million (2015: SEK 831.7 million), corresponding to SEK 6.34 (2015: SEK 6.02) per share.
– Cash flow from operating activities amounted to SEK 1,168.5 million (2015: SEK 1,154.5 million).
While Betsson expects investment in its sportsbook and the acquisition of RaceBets to contribute positively during full year 2017, the company said its positive momentum has already carried through into the first quarter of 2017, which has started off strongly.
Commenting on the results, Ulrik Bengtsson, chief executive officer of Betsson AB, said:
"Increased investments in product development, higher share of revenue from regulated markets and less revenue from countries with high margin have had a negative impact on earnings during the year.
“The operating margin for the full year was 23 percent despite a very weak second quarter. This shows that Betsson has a good balance in its business and can absorb both temporary revenue decline and increased costs, over time."
Betsson’s Board of Directors has proposed distribution of SEK 658.9 million (2015: SEK 624.3 million) to shareholders, corresponding to SEK 4.76 (2015: SEK 4.51) per share.