October 20, 2017

Interim report, 1 January-30 September 2017

Q3 revenue growth was 11% and revenue amounted to SEK 1,181 million

Q3 revenue growth was 11% and revenue amounted to SEK 1,181 million

Quarter: July - September

  • Group revenue was SEK 1,180.6 (1,063.3) million, an increase of 11 percent, with 2 percent organic growth.
  • Revenue in region Western Europe grew 63 percent, with a 31 percent organic growth.
  • Improved product offering drives continued strong growth in mobile Casino.
  • Operating income (EBIT) was SEK 216.0 (272.9) million, a decline of 21 percent, mainly due to negative currency impacts, increased betting duties and negative contribution from recent acquisitions. The operating margin was 18.3% (25.7).
  • Strong growth in active customers, increase by 20 percent.

Period: Janruary - September

  • Group revenue increased by 15 percent to SEK 3,460.0 (2,998.8) million. Casino revenue increased by 23 percent.
  • Operating income (EBIT) amounted to SEK 663.8 (681.3) million.
  • Profit before tax amounted to SEK 633.3 (676.4) million.
  • Net profit amounted to SEK 587.6 (634.5) million, corresponding to SEK 4.25 (4.58) per share.
  • Operating cash flow amounted to SEK 667.7 (836.3) million.

 

Key data

SEK m Q3 2017  Q3 2016  ∆  Jan-Sep 2017  Jan-Sep 2016  ∆  Jan-Dec 2016 
               
Revenue 1 180,6 1 063,3 11% 3 460,0 2 998,8 15% 4 117,3
Gross profit 859,0 807,0 6% 2 516,4 2 247,4 12% 3 078,0
Operating income (EBIT) 216,0 272,9 -21% 663,8 681,3 -3% 946,4
EBIT margin 18,3% 25,7% -7% 19,2% 22,7% -4% 23,0%
Net income 187,0 254,1 -26% 587,6 634,5 -7% 878,0
Earnings per share (SEK) 1,35 1,84 -27% 4,25 4,58 -7% 6,34
Operating cash flow 220,4 294,4 -25% 667,7 836,3 -20% 1 168,5
Casino revenue 871,1 731,8 19% 2 570,6 2 084,1 23% 2 907,8
Sportsbook gross turnover 5 391,0 5 548,0 -3% 17 152,1 18 274,4 -6% 24 392,1
Sportsbook revenue 275,1 300,2 -8% 781,0 816,0 -4% 1 080,4
Sportsbook margin after free bets 7,1% 7,6% 6,5% 6,5% 6,5%
Deposits 4 100,1 3 521,2 16% 11 945,6 10 510,6 14% 14 457,6
Active customers, 000's 619,0 515,1 20%       573

 

Message from the CEO, Pontus Lindwall:

"Group revenue in the third quarter 2017 amounted to SEK 1,181 million, which gave a reported growth of 11 percent and an organic growth of 2 percent compared to the same quarter last year. The operating income (EBIT) was SEK 216 million, which was a decline of 21 percent following the strong third quarter in 2016. 

Despite a good finish to the quarter, we are not satisfied with the overall growth in the quarter and Betsson has taken action to improve performance. Moreover, NetPlay, which Betsson acquired in April 2017, has not developed as well as planned and measures have been taken to get the business back on track. The Group is committed to continue to develop the product offerings and to achieve good returns on marketing spend in order to further capture growth.

The customer activity in Betsson's operations is strong and both active customers and deposits reached an all-time-high in the third quarter.

Betsson has made significant investments in the product offering and we have seen a positive impact in customer activity and mobile casino revenues. The roll-out of the new mobile Sportsbook will continue in the fourth quarter, which should put the company in a favourable position for the football World Cup in 2018. Betsson plans to launch the front-end framework OBG for Casino and Sportsbook on apps and desktop during 2018.

Focus on operations
I took over as CEO of Betsson AB in September and I can conclude that the product offering has probably never been better, but also acknowledge that there is room for further improvements in the operations and changes are being made. One example is that marketing is now organised by region in order to better leverage the multi-brand strategy and achieve higher return on marketing investments. 

We have good control of the business and the Betsson team and I are committed to achieve the long-term growth and earnings that I believe the company is capable of."    

 

Information on presentation
Betsson invites media, analysts and investors to Betsson's office at Regeringsgatan 28, Stockholm, Sweden, on Friday, 20 October, 2017 at 09:00 CET, for the presentation of the interim report with CEO Pontus Lindwall and CFO Kaaren Hilsen. The presentation will be held in English and followed by a questions and answers session. It is also available via webcast and conference call. 

To participate by phone, please dial: 
UK: +44 2033645374
SE: +46 850556474
US: +1 8557532230

To watch the webcast of the presentation, visit www.betssonab.com or  https://edge.media-server.com/m6/p/hqb7qjz8

Contacts:  
Pontus Lindwall, President and CEO 
+46 (0)8 506 403 00     

Kaaren Hilsen, CFO
+46 (0)8 506 403 00, kaaren.hilsen@betssonab.com   

Pia Rosin, VP Corporate Communications 
+46 (0)736 00 85 00, pia.rosin@betssonab.com  

 

This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 CET on 20 October 2017.


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