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Betsson reports decline in sportsbetting margin

The normally buoyant sports betting margins at Swedish online gambling group Betsson recorded a 2.6% decline in the six months to June 30, 2009, dropping from 10.5% to 7.9%. Management blamed a run of sports results that favoured the player rather than the operator for the decline, which was also apparent in the quarterly numbers, where a 9.8% margin slipped to 4.7%.

Betsson chief executive Pontus Lindwall remained optimistic, however, commenting that customer action and deposits had never been higher than in the second quarter, indicating solid growth.

H1,2009 revenues were up 29% to SEK 600 million ($80 million), from SEK 464.7 million in H1,2008, and on a quarterly basis were up 20% to SEK 284.6 million (Q2,2008: SEK236.9 million).

There was a slight one percent increase in pre-tax profit to SEK 62 million over the quarter and a 22% rise to SEK145 million over the first half of the year.

Deposits by the punters grew by 32% during the second quarter and gross sportsbook turnover rose 73% to SEK 644.8 million (Q2,2008: SEK373.2 million).

The Malta-based scratch card games developer Neo Games has signed an agreement with Betsson which will see the integration of this style of instant win games on the Betsson platform, management revealed. Betsson will launch a white label platform in partnership with Nordic Entertainment to exploit the format.

70% of total gross profit for Q2,2009 came from casino operations, up 10% on the same period last year. Poker saw a decline, from 19% last year to 14.2% this time, and sportsbetting contributed 11.5% of gross profits, nicely up on the 7.5% recorded in the Q2,2008.

Source: InfoPowa News

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