Revenue growth across all regions and 21% EBIT growth
FIRST QUARTER JANUARY – MARCH 2019
- Group revenue was SEK 1,330.6 (1,210.0) million, an increase of 10 percent with an organic growth of 8 percent.
- All regions showed growth for both the Casino and the Sportsbook product compared to the same quarter last year.
- Casino revenue grew by 10 percent and Sportsbook revenue grew by 13 percent, with a Sportsbook margin of 6.3 (6.6) percent.
- Operating income (EBIT) was SEK 255.2 (211.4) million, an increase of 21 percent.
- The operating margin was 19.2 (17.5) percent.
Message from the CEO Pontus Lindwall:
”Revenue for the first quarter 2019 was SEK 1,330.6 million, an increase of 10 percent (8 percent organic) compared to the first quarter 2018. Casino revenue increased by 10 percent, while Sportsbook increased by 13 percent in the quarter. The Sportsbook margin was 6.3 percent, which is lower than the eight-quarter average. The Sportsbook margin differs by the outcome of various sport events. The operating profit (EBIT) during the first quarter was SEK 255.2 (211.4) million, an increase of 21 percent, and is equivalent to an EBIT margin of 19.2 (17.5) percent.
Solid results despite the new situation in Sweden
We have now seen the effects from the new Swedish gaming law for a full quarter. Even though we are reporting a solid first quarter, we see that both revenue and operating profit was negatively impacted by the new regulation in Sweden. The market has experienced a challenging start, however we believe it is too early to draw any long-term conclusions. During the first half of the first quarter, there were high costs for welcome bonuses to customers as well as a difference in the dynamics of the customer behavior. During the second half of the quarter, the situation stabilised, primarily regarding customer volumes and number of new customers. In addition, there are ongoing discussions regarding rules for marketing volumes and content in Sweden. Betsson still sees Sweden as an important market long-term, however we now also see the advantage of having a geographical spread that enables scalability. As a result from changing market conditions in Sweden we also see increased M&A activities.
The adoption of the Remote Gambling Bill in the Netherlands in February was a positive milestone. It is a step forward for the Dutch market and consumers, as well as a positive development towards locally regulated revenues for Betsson. The operational subsidiaries have taken swift measures to be in the best position to obtain a license at the earliest possible time. The measures include adjustments to the product offering, rebranding and payment solutions. Whilst we have short term negative impact on revenues in the Netherlands (one contributing factor reflected in the trading update), the measures ensure a sustainable outlook for the Dutch business and are long-term investments. Above all, we are committed to working with the Dutch regulator and contributing positively to the objective of achieving high channelisation in minimum time in the Netherlands.”
INFORMATION ON PRESENTATION
Betsson invites media, analysts and investors to Betsson's office in Regeringsgatan 28, Stockholm, Sweden on Tuesday, 7 May, 2019 at 09:00 CET, for the presentation of the interim report with CEO Pontus Lindwall and acting CFO Kristian Saliba. The presentation is held in English and is followed by a Q&A session. It is also available via webcast and conference call.
To participate by phone, please dial:
UK: +44 33 33 00 08 04
SE: +46 8 56 64 26 51
US: +1 63 19 13 14 22
Please use the confirmation Code: 41069642#
To watch the webcast of the presentation, visit www.betssonab.com or
Pontus Lindwall, President and CEO
+46 (0)8 506 403 00
Kristian Saliba, acting CFO
+46 (0)8 506 403 00
Anna Ulinder, IR Manager
+46 (0)8 506 403 00
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 7 May, 2019.