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Revenue and EBIT all-time high for the third consecutive quarter

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QUARTER OCTOBER – DECEMBER 2018

  • Group revenue was SEK 1,436.6 (1,256.4) million, an increase of 14 percent with an organic growth of 12 percent.
  • All regions showed growth in the quarter compared to the same quarter last year.
  • Casino revenue was 1,071.7 (867.3) million, an increase of 24 percent with an organic growth of 20 percent.
  • Sportsbook revenue was 341.4 (359.3) million, a decrease of 5 percent, whilst Sportsbook turnover increased by 6 percent with an organic growth of 14 percent.
  • Operating income (EBIT) was SEK 341.5 (218.4) million, an increase of 56 percent.  
  • The operating margin was 23.8 (17.4) percent.

FULL YEAR 2018

  • Group revenue was SEK 5,419.8 (4,716.5) million, an increase of 15 percent with an organic growth of 11 percent.
  • Operating income (EBIT) was SEK 1,193.7 (882.2) million, an increase of 35 percent.
  • Net income was SEK 1,078.1 (786.5) million, corresponding to SEK 7.79 (5.68) per share, an increase of 37 percent.
  • Operating cash flow amounted to SEK 1,273.3 (946.7) million.
  • The Board of Directors proposes to the AGM that SEK 539.0 (393.1) million, which corresponds to SEK 3.89 (2.84) per share, is distributed to shareholders.

MESSAGE FROM THE CEO

”Revenue for the fourth quarter 2018 increased 14 percent compared to the same quarter 2017. The organic growth was 12 percent and we saw growth across all regions. During the quarter casino revenue increased by 24 percent. Sportsbook turnover continued to grow after the world cup ended, by 6 percent during the quarter, while revenue was down 5 percent compared to the same quarter 2017. SB margin was 7.3 percent which is lower than the 8.2 percent margin for the same period last year. Total revenue for full year 2018 increased by 15 percent to SEK 5,419.8 million.

Operating income (EBIT) for the fourth quarter was SEK 341,5 (218,4) million, which is equivalent to an EBIT margin of 23.8 percent, an increase of 56 percent compared to the same quarter 2017. For the full year 2018, EBIT reached SEK 1,193.7 million, equivalent to an EBIT margin of 22 percent and an increase of 35 percent compared to the full year 2017.

ALL-TIME HIGH IN REVENUE AND EBIT

For the third consecutive quarter Betsson delivered all-time high revenue and EBIT and proved 2018 to be a turning point. I am happy to see how we have been able to show continuous results from the ”Back on track” program during the year. A year ago we announced the plan that involved the entire organisation. Since then, the focus has been on the development of products and technology to continue to deliver the best customer experience. At the same time, there has been a strong determination to improve efficiency in marketing and in internal processes to increase profitability.

During 2018 we have been preparing heavily for the Swedish regulation that came into effect January 1, 2019. Preparations included to secure compliance as well as increased marketing activities. To stay on track and execute efficient operations are crucial to absorb increased costs from betting duties in more markets. The advantage for a large group as Betsson, with long industry experience, several brands and geographical spread that make the operations scaleable, is the financial strength. Now I hope to see a channelisation of around 95 percent as I am convinced that this will benefit customers, long-term operators and Betsson’s shareholders.

Technical requirements had to be delivered within a short timeframe and this was the initial challenge for January 1, 2019. New big players entering into the Swedish online casino market has changed market conditions and we expected to see an impact in this segment. These factors, together with high bonus costs, made a challenging start of the year in Sweden, however customer activity is in line with our expectations. Long-term we expect the market to grow in a sustainable manner and overall we remain positive about industry growth in regulated markets”.

For further information, contact:
Pontus Lindwall, President and CEO
+46 (0)8 506 403 00

Kaaren Hilsen, CFO
+46 (0)8 506 403 00
kaaren.hilsen@betssonab.com

Anna Ulinder, IR Manager
+46 (0)8 506 403 00
ir@betssonab.com

ABOUT BETSSON
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 on Nasdaq Stockholm Large Cap (BETS). Betsson’s operational subsidiaries’ vision is to deliver the best customer experience in the industry. They offer casino, sportsbook and other games via gaming licences in twelve countries in Europe and Central Asia. The business model is to offer gaming under multiple brands, including Betsson, Betsafe, Nordicbet and Casinoeuro. The brands are operated on a proprietary platform, which is the core of the offer and the customer experience. Being a responsible operator in relation to customers, suppliers, authorities, investors and other stakeholders is a cornerstone of the Betsson’s business. Betsson is a member of the European Gaming and Betting Association (EGBA), ESSA (Sports Betting Integrity) and G4 (The Global Gambling Guidance Group).

Learn more about the Group on www.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, through the agency of the contact persons set out above, at 07.30 CET on 14 February 2019.

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