Betsson is aiming to offer its in-house developed sportsbook to external customers by next year, as the igaming holding company seeks to overcome a decline in revenues as a result of regulatory difficulties in Sweden and the Netherlands.
CEO Pontus Lindwall, who admitted he was “not happy” with the company’s performance over the past two quarters, cited the re-regulated Swedish market as being a major challenge, at least in the short term, with the firm’s marketing efforts being scaled down.
A tightening of the belt which started with last year’s “back on track” organisational restructure has, as Lindwall sees it, helped prepare Betsson for future opportunities despite disappointing third-quarter results.
Revenues fall by 11 per cent to SEK1,275.2m (£103.2m) from 1,426.8m for Q3 2019, with operating income down to SEK212.5m (340.2m) and EBIT margin at 16.7 per cent (23.8 per cent). Operating cash flow was down to SEK307m (400.8m).
Lindwall said: “Like the previous quarter, the third quarter has continued to pose challenges for us, as well as for several other companies in the gaming industry. We have seen the merger between two major global operators, a development that is in line with what we expect to happen in an industry with many players. We expect this development to continue and also affect the Swedish market to a greater extent than we have seen so far after the Swedish re-regulation. The regulated markets now also face major challenges regarding the degree of channelisation, which is one of the most important prerequisites for high consumer protection.
“Betsson's ambition is to outgrow the market in the long term, organically and through acquisitions. Although I am not happy with the development during the last two quarters, we are well prepared, through the initiatives we have taken, when the right business opportunity realises.
“Betsson continue to invest in development of the product offering. It is gratifying to see the performance of the in-house developed sportsbook, which should make it an attractive third-party product. The ambition is to offer the sportsbook to external customers during next year.
“We also focus on the development of our other technology, which enables both rapid market adaptations and cost-effective growth, and we continue to invest in the infrastructure that gives customers a fun, safe and secure experience.”
