Swedish betting firm Betsson has posted their first quarter 2016 financial results, noting large increases in revenues and net income.
Key financial indicators for the first quarter ending March 31st, 2016 were:
- Revenue increased by 18 per cent to SEK 1,000.1 (847.4) million. Revenue was burdened by SEK 44.7 million due to exchange rate fluctuations.
- Europe-Bet's online business increased 37 per cent in constant currency.
- The strong organic growth in the consumer brands amounted to 21 per cent in constant currency.
- Revenue from Sportsbook reported organic growth of 27 per cent in constant currency, and 58 per cent of the turnover was generated from mobile devices.
- Operating income amounted to SEK 250.1 (238.0) million and the operating margin amounted to 25.0 (28.1) percent.Operating income was affected by unfavourable exchange rate fluctuations amounting to SEK 34.7 million.
- Income before tax amounted to SEK 248.9 (236.4) million.
- Net income amounted to SEK 234.0 (224.1) million, corresponding to SEK 1.69 (1.62) per share.
- During the quarter, the number of active players was 538,077, which corresponds to growth of 45 per cent.
- Customer deposits in all of Betsson's gaming solutions amounted to SEK 3,516.6 (3,173.6) million, an increase of 11 per cent.
- Gross turnover in the Sportsbook amounted to SEK 6,717.7 (6,054.4) million, corresponding to growth of 11 per cent.
- The CasinoEuro, Eurocasino, Sverigeautomaten and Norgesautomaten brands were migrated during the quarter to the shared technology platform, Techsson. This means that all brands except the one that was most recently acquired, Europe-Bet, generate income from a shared technical platform.
- Europe-Bet contributed SEK 93.9 (-) million to revenue in the quarter, and SEK 35.3 (-) million to operating income.
- Betsson has gained a license in Ireland and assumes good potential for strong growth in the country.
Commenting on his company's performance Betsson CEO Ulrik Bengtsson said, "Organic growth continues to be strong. This is the eighth consecutive quarter where growth in constant currency has exceeded market growth in our core markets. Betsson's consumer brands are doing particularly well, with organic growth in constant currency of 21 per cent, and Sportsbook is growing, despite low historical margins, with organic growth of 27 per cent in constant currency. The underlying activity continues to be strong, with growth of 45 per cent in active customers, which during the quarter was 538,077. The "old" Betsson has now been fully migrated to the shared technical platform, which further strengthens the possibilities for good growth."