STRONGER THIRD QUARTER FOR BETSSON
Operating income reaches SEK 272.9 million on margin of 25.7 percent.
Betsson has posted a strong third quarter report with operating income up at SEK272.9 million on a lower margin of 25.7 percent, flagging the following highlights:
* Revenue up 9 percent to SEK 1,063.3 (972.9) million;
* Casino revenue up 11 percent at SEK 731.8 (656.8) million;
* Sportsbook revenue up 9 percent at SEK 300.2 (276.0) million;
* Mobile revenue soared 55 percent to SEK 504.2 (326.1) million in the quarter and now represents 47 percent of group revenue;
* Net income rose to SEK 254.1 (247.0) million, corresponding to SEK 1.84 (1.78) per share;
* Player deposits across Betssons gaming verticals were up 9 percent at SEK 3,521.2 (3,237.7) million;
* The betting group flagged the acquisition of Lithanian-licensed gaming operator Lošimų strateginė grupė, UAB;
Summarizing its nine-month 2016 year-to-date performance, Betsson reported:
* Revenue increased 12 percent to SEK 2,998.8 (2,680.9) million;
* Operating income down at SEK 681.3 (712.1) million;
* Net Income lower at SEK 634.5 (672.7) million, corresponding to SEK 4.58 (4.87) per share;
* Cash flow from operating activities slower at SEK 836.3 (876.3) million;
Chief executive officer Ulrik Bengtsson said that the third quarter improvements illustrated that a slow performance in the second quarter had been a temporary aberration, and that the companies investments in Sportsbook and Casino operations have driven better growth.
"For example the Nordic region grew by 22 percent," he said. "Investments in these products will continue in the coming quarters. The scalability of the business model enabled the operating margin to return to historically strong levels."