Betsson has reported revenue growth across all geographic regions in Q1 2019, with both sportsbook and casino up in spite of difficulties in Sweden.
Group revenue to the end of March was SEK1.33bn (SEK1.21bn), an increase of 10 per cent with an organic growth of eight per cent. Casino revenue grew by 10 per cent and sportsbook by 13 per cent, with a sportsbook margin of 6.3 per cent (6.6 per cent).
Operating income (EBIT) was SEK255.2m (SEK211.4m), an increase of 21 per cent and the operating margin was 19.2 per cent (17.5 per cent).
Betsson CEO Pontus Lindwall said: ”We have now seen the effects from the new Swedish gaming law for a full quarter. Even though we are reporting a solid first quarter, we see that both revenue and operating profit was negatively impacted by the new regulation in Sweden. The market has experienced a challenging start, however we believe it is too early to draw any long-term conclusions.
“During the first half of the first quarter, there were high costs for welcome bonuses to customers as well as a difference in the dynamics of the customer behaviour. During the second half of the quarter, the situation stabilised, primarily regarding customer volumes and number of new customers. In addition, there are ongoing discussions regarding rules for marketing volumes and content in Sweden.
“Betsson still sees Sweden as an important market long-term, however we now also see the advantage of having a geographical spread that enables scalability. As a result from changing market conditions in Sweden we also see increased M&A activities.”
Lindwall also described the adoption of the Remote Gambling Bill in the Netherlands in February as a “positive milestone” ensuring a “sustainable outlook for the Dutch business and long-term investments.”
