Betsson has reported an 11 per cent drop in organic revenues, with the group citing weakness within Sweden, Norway and the Netherlands.
Overall group revenue of SEK1.29bn (£103.1m) for Q4 2019 was down from SEK1.44bn in Q4 2018, with casino declining by 10 per cent and sportsbook down nine per cent. Margin within sportsbook was 6.8 per cent, down from 7.3 per cent year-on-year.
Across the full year, group revenue was down five per cent to SEK5.17bn, with operating profit falling from 1.2bn to SEK865m. The board has proposed a dividend of SEK2.84 (2018: SEK3.89) be distributed to shareholders.
Betsson stated that while development in Sweden, Norway and the Netherlands continued to be weak, other markets in which the group operates – locally regulated and non-locally regulated – have performed well.
Betsson CEO Pontus Lindwall said: "We are proud to present an operating profit for the full year 2019 of SEK 865 million. The operating profit shows Betsson's ability to deliver profitability, also during the challenges that 2019 entailed.
“We had expected some recovery in the closing fourth quarter, above all in the Swedish market, but we did not reach our objectives there. Up until now, one year after the Swedish re-regulation, we have still not seen the market consolidation that we expect due to the great number of operators, many of them showing no profitability.
“On the other hand, we have seen declining channelisation, which makes it difficult for the licensed operators who pay 18 per cent gaming tax and it also jeopardises consumer protection. High channelisation contributes to competition on equal terms for the companies in the sector that operate in the Swedish market.”
