Betsson delivered record-breaking revenue and operating income for the third consecutive quarter in Q4 2018, results which the company believe derive from the “back on track” programme that saw a major organisational restructure take place a year ago.
All regions grew in the quarter, year-on-year, with revenue up to SEK1.437bn (£120m), an increase of 14 per cent with organic growth at 12 per cent, and EBIT at SEK341.5m, up 56 per cent. For the full year, group revenue was SEK5.42bn, up 15 per cent with organic growth of 11 per cent, with EBIT of SEK1.194bn, up 35 per cent. Pontus Lindwall, Betsson’s president and CEO, said: “A year ago we announced the plan that involved the entire organisation. Since then, the focus has been on the development of products and technology to continue to deliver the best customer experience. At the same time, there has been a strong determination to improve efficiency in marketing and in internal processes to increase profitability. “During 2018 we have been preparing heavily for the Swedish regulation that came into effect January 1, 2019. Preparations included to secure compliance as well as increased marketing activities. To stay on track and execute efficient operations are crucial to absorb increased costs from betting duties in more markets. The advantage for a large group as Betsson, with long industry experience, several brands and geographical spread that make the operations scaleable, is the financial strength. “Now I hope to see a channelisation of around 95 per cent as I am convinced that this will benefit customers, long-term operators and Betsson’s shareholders. “Technical requirements had to be delivered within a short timeframe and this was the initial challenge for January 1, 2019. New big players entering into the Swedish online casino market has changed market conditions and we expected to see an impact in this segment. These factors, together with high bonus costs, made a challenging start of the year in Sweden, however customer activity is in line with our expectations. Long-term we expect the market to grow in a sustainable manner and overall we remain positive about industry growth in regulated markets.”
