BUSINESS

Betsson results fail to satisfy the market

TAGs: Betsson, Sweden

Betsson logoBetsson posted impressive revenues for Q2 2012 as small sportsbook margins failed to dent their performance even as the stock price saw a change in direction. The amount the company took in total revenue reached SEK 486.2 million – an increase of 44 percent when compared to the previous year. Operating income also rose, by 7 percent to SEK109.5 million with the less-than-expected rise attributed to the impact of “acquisitions and distribution of shares”. Their sportsbook margin, after free bets, was the lowest ever at 4.6 percent and it’s explained by an “extra strong seasonal pattern” that was present in Q2 2012.

The company did see a rise in active customers as they rose to 5,087,000 from just 3,359,000 in the previous period and that is in addition to the number of registered customers jumping from 32,295,000 to 54,180,000.

Magnus Silfverberg, President and CEO of Betsson, added: “Betsson is strengthening its position as a sportbooks operator through a broader sportsbook offering with even more mobile solutions. In addition, several technical development projects have been undertaken with the purpose of securing future growth and profitability. This, together with the highest activity level ever and the ATH in deposits, indicates a continued strong development for Betsson.”

For the year as a whole, revenues are up 35 percent to SEK 1,022.2 million with operating income up from SEK234.5 million last year to SEK 283.5 million now. The stock market obviously didn’t like the sound of their results as the price has dropped by SEK 7.50 so far today and was at SEK 186.50 when this article went to press.

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