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Betsson AB (publ) interim report, 1 January - 30 June 2018

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Revenue increased 14%, EBIT increased 45%

Quarter: April - June 2018

  • Group revenue was SEK 1,346.4 (1,177.5) million, an increase of 14 percent with an organic growth of 11 percent. 

  • Casino revenue grew by 16 percent and Sportsbook revenue grew by 17 percent, with a sportsbook margin of 6.3 (6.4) percent.

  • 3.7 percent of the Group revenue in the second quarter was related to the FIFA World Cup that started on 14 June 2018.

  • Operating income (EBIT) was SEK 300.7 (206.9) million, an increase of 45 percent, mainly due to high activity during the World Cup, product improvements and efficiencies. 

  • The operating margin was 22.3 (17.6) percent.


Period: January - June 2018

  • Group revenue was SEK 2,556.4 (2,279.4) million, an increase of 12 percent with an organic growth of 8 percent. 

  • Operating income (EBIT) was SEK 512.1 (447.8) million.

  • Net income was SEK 459.4 (400.5) million, corresponding to SEK 3.32 (2.89) per share.

  • Operating cash flow amounted to SEK 583.3 (447.3) million. 

  • SEK 393.1 million was distributed to shareholders in June.


Key data

SEK m Q2 2018  Q2 2017  ∆  Jan-Jun 2018  Jan-Jun 2017  ∆  Jan-Dec 2017 
             
Revenue 1 346,4 1 177,5 14% 2 556,4 2 279,4 12% 4 716,5
Gross profit 968,0 851,1 14% 1 832,3 1 657,4 11% 3 419,4
Operating income (EBIT) 300,7 206,9 45% 512,1 447,8 14% 882,2
EBIT margin 22,3% 17,6% -  20,0% 19,6% -  18,7%
Net income 271,4 186,1 46% 459,4 400,5 15% 786,5
Earnings per share (SEK) 1,96 1,34 46% 3,32 2,89 15% 5,68
Operating cash flow 271,2 242,4 12% 583,3 447,3 30% 946,7
Casino revenue 1 016,6 876,6 16% 1 939,5 1 699,5 14% 3 437,9
Sportsbook gross turnover 6 226,5 5 755,0 8% 11 999,6 11 761,1 2% 23 117,5
Sportsbook revenue 300,2 255,6 17% 563,7 505,9 11% 1 140,3
Sportsbook margin after free bets 6,3% 6,4% -  6,4% 6,2% -  6,9%
Deposits 4 664,7 4 056,3 15% 8 855,0 7 845,5 13% 16 308,0
Active customers 692 431 551 181 26%        


Message from the CEO, Pontus Lindwall

“Revenue for the second quarter 2018 was SEK 1,346.4 (1,177.5) million, an increase of 14 percent compared to the same quarter 2017. The organic growth was 11 percent for the quarter. The increased revenue is mainly related to continued growth in Western Europe and increased activity during the FIFA World Cup.

Casino revenue increased by 16 percent and reached over 1 billion SEK in revenue in a quarter for the first time. The Sportsbook revenue increased by 17 percent with a sportsbook margin slightly below the eight quarter rolling average.

Operational income (EBIT) for the quarter was SEK 300.7 (206.9) million, an increase of 45 percent compared to the same quarter in 2017. The improved earnings are mainly a result of high activity during the World Cup, product improvements and efficiencies. Operating expenses increased by 4 percent compared to the 14 percent revenue growth."

Starting to see signs of improvement
There has been progress in some areas during the quarter, for example better efficiency and product upgrades, but we still have a lot more to do. We continue to systematically follow our back-on-track plan, which is a long list of actions that are built around four main areas: growth in core markets, product and technology, efficiencies, and M&A activities temporarily on hold. 

 At the core of everything is our company culture and organisation. Betsson is as good as its employees and it has been a pleasure to see the enthusiasm and hard work of the Betssonites during the World Cup. 

 The third quarter has begun with daily revenues higher than the average daily revenue for the full third quarter last year. The revenue increase is to a large extent a result of activity related to the FIFA World Cup that ended on 15 July 2018 and should not be regarded as guidance for the full third quarter. 

 We continue to work hard with the ambition to make Betsson’s product offering more competitive and the marketing efforts more efficient. However, it will still take time until we see sustainable improvements.”


Information on the presentation
Betsson invites media, analysts and investors to Betsson's office in Stockholm, Sweden on Thursday, 19 July, 2018 at 09:00 CET, for the presentation of the interim report with CEO Pontus Lindwall and CFO Kaaren Hilsen. Visitors are asked to use the entrance at Regeringsgatan 26. The presentation will be held in English and followed by a questions and answers session. It is also available via webcast and conference call.

To participate by phone, please dial:
UK: +44 2033645374
SE: +46 850556474
US: +1 8557532230

To watch the webcast of the presentation, visit www.betssonab.com or https://edge.media-server.com/m6/p/qts6hb5d

Contacts
Pontus Lindwall, President and CEO, +46 (0)8 506 403 00
Kaaren Hilsen, CFO +46 (0)8 506 403 00, kaaren.hilsen@betssonab.com
Pia Rosin, VP Corporate Communications, +46 (0)736 00 85 00, pia.rosin@betssonab.com

This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 19 July 2018.

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