Nordic online gambling operator Betsson AB enjoyed double-digit growth in Q2 2017, as its Western European operations improved by more than two-thirds.
Figures released Wednesday by the Stockholm-based Betsson showed the company’s revenue rising 26% year-on-year to just under SEK 1.12b (US $142m) in the three months ending June 30. Operating income was up 31% to SEK 207m while net income gained 27% to SEK 186m.
Betsson’s organic revenue growth was a more modest but still impressive 15% once you discount gains from the recent launch of its Spanish-facing StarCasino.es site and the acquisitions of the UK-facing NetPlay TV and race betting business RaceBets.
Those acquisitions helped boost Western European market revenue by 69% year-on-year, compared to 28% growth in Betsson’s core Nordic markets. Western Europe now accounts for 30% of Betsson’s overall revenue, with the Nordics’ share slipping to 47%. Central, Eastern Europe and Central Asia (CEECA) markets constituted 19% of the pie, although this figure shrunk 15% year-on-year.
Betsson’s share of revenue from locally taxed markets hit 23.9% in Q2, up from 13.3% in Q2 2016. This increased focus on regulated European Union markets came at a cost, as Q2 betting duties topped SEK 53.5m versus SEK 31.3m in the same period last year.
Betsson’s casino vertical saw its revenue jump 28% to SEK 876.6m, the third straight quarter of +20% growth. Betsson credited its expanded mobile casino product, which saw its revenue rise 76% year-on-year. Betsson’s casino portfolio now boasts nearly 2,100 games, of which 1,503 are available via mobile.
Sportsbook wagering turnover fell 4% year-on-year but revenue improved 15% to SEK 255.6m as margins improved to 6.4%. Sportsbook performance was strongest in the Nordic markets, rising 48% year-on-year. Betsson expects continued growth following ongoing updates to its mobile sports product, the full effect of which Betsson anticipates will reveal itself by Q4.
Looking ahead, Betsson CEO Ulrik Bengtsson reported that Q3’s daily revenue to date is “as expected, much higher” than the same period last year. Bengtsson says the company plans to boost marketing spending through the rest of the year to promote its improved product offering and build on its Nordic and Western European market momentum.