Betsson Revenue Rises 18 Percent In Q1-2016

But exchange rate fluctuations pull down otherwise solid results

The Betsson gambling group has posted its Q1-2016 results, flagging revenue growth of 18 percent in the quarter despite a burden of SEK 44.7 million due to exchange rate fluctuations.
The group reports that Europe-Bet's online business increased 37 percent in constant currency, and that strong organic growth in the consumer brands of 21 percent in constant currency were recorded.
Revenue from Sportsbook showed organic growth of 27 percent in constant currency, with 58 percent of turnover generated from mobile devices.
Operating income of SEK 250.1 (238.0) million was achieved on operating margin of 25.0 (28.1) percent.
However, operating income was negatively impacted by unfavourable exchange rate fluctuations totalling SEK 34.7 million.
Income before tax amounted to SEK 248.9 (236.4) million, and net income of SEK 234.0 (224.1) million was achieved, corresponding to SEK 1.69 (1.62) per share.
During the quarter, the number of active players reached 538,077, which corresponds to growth of 45 percent, and customer deposits came in at SEK 3,516.6 (3,173.6) million across all operations, an increase of 11 percent.
Gross Sportsbook turnover was SEK 6,717.7 (6,054.4) million, corresponding to growth of 11 percent.
The CasinoEuro, Eurocasino, Sverigeautomaten and Norgesautomaten brands were migrated during the quarter to the shared technology platform, Techsson.
This means that all brands except the one that was most recently acquired, Europe-Bet, generate income from a shared technical platform.
Europe-Bet contributed SEK 93.9 (-) million to revenue in the quarter, and SEK 35.3 (-) million to operating income.
Betsson has gained a license in Ireland and predicts good potential for strong growth in that market.
Betsson's CEO, Ulrik Bengtsson commented Wednesday:
"Organic growth continues to be strong. This is the eighth consecutive quarter where growth in constant currency has exceeded market growth in our core markets.
"Betsson's consumer brands are doing particularly well, with organic growth in constant currency of 21 percent, and Sportsbook is growing, despite low historical margins, with organic growth of 27 percent in constant currency.
"The underlying activity continues to be strong, with growth of 45 percent in active customers, which during the quarter was 538,077.
"The "old" Betsson has now been fully migrated to the shared technical platform, which further strengthens the possibilities for good growth."

Online Casino News Courtesy of Infopowa