Internet betting firm Betsson AB has revealed its first quarter 2014 financial results, noting growth in gross profits and revenues.
Key financial indicators for the quarter ending March 31st, 2014 were:
Revenues up at SEK 686.0 (638.7) million.
Gross profit up at SEK 578.7 (540.1) million.
Organic growth adjusted for exchange rate effects still reached 10 percent, boosted by record underlying activity.
Gross turnover in Sportsbook amounted to SEK 372.0 (325.4) million, representing a growth, adjusted for exchange rate and acquisition effects, of 12 percent.
Operating income was up at SEK 171.2 (161.1 in Q1-2013) million.
Income before tax was also better at 166.6 (160.1) million.
Net income amounted to SEK 157.7 (151.9) million, corresponding to SEK 3.52 (3.54) per share.
Customer deposits in all of Betsson's gaming solutions amounted to SEK 2,212.5 (2,113.9) million, despite being adversely affected by SEK 111.6 million through disadvantageous exchange rate fluctuations.
The company has 7,283,900 registered players, of whom 360,800 are regarded as active participants.
SEK 666.2 (606.4) million is available in liquid funds.
Corporate highlights during the quarter were:
Class One Holding Ltd, which operates the brands Oranje and Kroon Casinos, was acquired during the quarter and has, since 4 March, contributed to group's revenues with SEK 23.4 million and to the company's operating income by SEK 14.4 million.
The profit and loss statement was charged with SEK 10.1 million in acquisition costs and SEK 1.0 million in additional depreciations of the newly acquired client base. Betsson gains market shares in both Casino and Sportsbook.
Mobile penetration has increased from 12 percent to 15 percent over the previous quarter.
Commenting on his company's performance, Betsson President and CEO Magnus Silfverberg said: "An organic growth of 12 percent in Casino, as well as a good growth in Sportsbook, means that Betsson is gaining market share. At the same time, the mobile penetration has increased from 12 percent to 15 percent over the previous quarter."
"This shows that the ongoing initiatives in personalized real-time communications, digital marketing, search engine optimization and mobile development are taking effect."
"At the same time, the acquisition of Oranje and Kroon had a positive effect on the result and both brands are showing strong growth throughout the quarter. It is clear that the company, with its initiatives and its multi-brand strategy, is well positioned both for continued growth and for future potential acquisitions."