Swedish internet betting specialist and gambling operator Betsson revealed considerable growth in its interim three-month fiscal reports. However, the company’s rather low margin on sportsbook operation and acquisition-related expenses caused a drop in net income.
The Key Performance Indicators for the Swedish online gambling operator included SEK 529.5 million revenues compared SEK 465.7 million, a nice increase of 14 percent.
The not-so nice news on profits included operating income of SEK 120.0 million, down from SEK 152.8 million. Net income was SEK 113.1 million, down to SEK 138.4 million. This corresponds to SEK 2.68, down from SEK 3.40 per share.
The Sportsbook margin after free bets was a low 5.5 percent (down from 7.6 percent), Betsson blamed “unfavorable sports results” for the bad numbers as well as a technical issues concerning the integration of the recently-acquired business Betsafe.
President and CEO of Betsson Magnus Silfverberg commented: “The strong growth in activity in Betssons Sportsbook is a proof that investments have been successful. Revenues have been negatively affected by a low sportsbook margin amounting to 5.5 percent. However, the margin was stronger in the beginning of the fourth quarter and amounted to above 8.0 percent.”
Silfverberg described the technical problems, saying: “The migration problems earlier communicated are well identified and a number of improvement initiatives are executed. These experiences together with high activity on Betssons different gaming sites as well as leading technology in the mobile segment, will give a continued strong development for Betsson.”
Swedish gambling operator plans to expand in China
According to Swedish gambling news, China is willing to offer licenses in the coming one or two years, which can change the worldwide gaming market.
Betsson already announced its plans to concentrate more on the Asian market including China, which they consider an interesting opportunity in the long term. However, the company does not expect any income from China in the near future.