Betsson AB interim report July – September 2020
third QUARTER july – september 2020
- Group revenue was SEK 1,676.7 (1,275.2) million, an increase of 31% with an organic increase of 27%.
- Casino revenue increased by 39%. Sportsbook revenue increased by 12% and the sportsbook margin was 7.0% (7.8%).
- Operating income (EBIT) was SEK 329.1 (212.5) million,
an increase of 55%, the EBIT margin was 19.6% (16.7%). - Operating cash flow was 494.6 (307.0) million, an increase of 61%.
SIGNIFICANT EVENTS AND OUTLOOK
- Betsson acquired 70% of the Colombian operator Colbet including licence in Colombia.
- Active customers increased by 46% to 920,045 (632,162).
- In July, SEK 393.6 million was distributed to shareholders in the form of a redemption programme.
- The daily average revenue in the fourth quarter 2020 until 18 October was 45% (46% organic) higher than the average daily revenue of the full fourth quarter 2019.
CEO COMMENT
" Strong revenue growth while investing in new geographies.”
“Betsson presented another strong result in the third quarter. The last two quarters have been defined by extraordinary challenges for everyone. Despite this, Betsson has both expanded into new markets and developed new products and features. The positive development is partly attributable to the increased demand for digital entertainment through the pandemic. The online gambling industry has more clearly than ever demonstrated its resilience to market fluctuations during the pandemic when compared to many other sectors. Betsson has a unique position in being more resilient than the sector average due to the Company’s diversified product and brand portfolio, global footprint and strong finances.
Betsson’s strong corporate culture has continued to support the performance of the organisation during the pandemic. I am immensely proud of all the ‘Betssonites’ who rapidly adapted to the new circumstances with sustained productivity and service levels to our customers.
Sporting events were finally back on the agenda in the quarter and, together with robust performance in casino, contributed to setting record revenue levels for the second consecutive quarter. It is pleasing to see that a large part of the customers who have discovered the attraction of online gambling during the lockdown and have continued gambling on digital devices even though many land-based casinos have opened again. This highlights that our ongoing delivery of our ambition of creating the best user experiences through new functions, new design, higher speed and a broader offering leads to the retention of both existing and new customers.
Betsson profited from solid growth continuing across all regions and I am particularly pleased to see a return of organic growth in the Nordics again, with the star performer being the new ‘pay and play’ brand Jalla Casino, launched in Sweden in April. To ensure and maintain the safety of the customer during the pandemic, Betsson procatively increased vigilance with respect to responsible gambling. The number of interactions and interventions has increased significantly compared to the previous quarters.
Betsson has a strong financial position, a diversified portfolio with a global footprint, strong brands with local expertise, flexible and scalable proprietary technology, along with highly dedicated and talented teams. I look forward, with confidence, to the future of both B2C and Betsson’s ambitions in B2B as a sportsbook supplier.”
PRESENTATION OF THE INTERIM REPORT
At 10:00 CEST today 23 October, Betsson invites analysts, investors and media to participate in the results presentation of the third quarter. The results will be presented by CEO Pontus Lindwall and CFO Martin Öhman. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via the link or phone, see details below.
Webcast link:
https://edge.media-server.com/mmc/p/9qxa39dh
Dial-in numbers:
Sweden: +46 8 506 921 80
United Kingdom: +44 20 7192 8000
United States: +1 631 510 7495
Conference ID: 8653829
For further information, please contact:
Pontus Lindwall, President and CEO Betsson AB
+46 8 506 403 00 pontus.lindwall@betssonab.com
Martin Öhman, CFO Betsson AB
+46 8 506 403 00 martin.ohman@betssonab.com
Anna-Lena Åström, Head of Investor Relations
+46 761 80 55 46 anna-lena.astrom@betssonab.com
This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 07:30 CEST on 23 October 2020.
About Betsson AB
Betsson AB (publ) is a holding company that invests in and manages fast-growing companies within online gaming. The company is one of the largest in online gaming in Europe and has the ambition to outgrow the market, organically and through acquisitions. This should be done in a profitable and sustainable manner, primarily in locally regulated markets. Betsson AB is listed at Nasdaq Stockholm, Large Caps (BETS). www.betssonab.com