Unibet will be "active" in industry consolidation
CEO Henrik Tjärnström says operator is considering adding "strategically fitting acquisitions" to the business
Unibet chief executive Henrik Tjärnström said the operator will look to play an “active” role in industry consolidation and is currently assessing a large number of M&A opportunities.
Speaking to eGaming Review this morning after the Stockholm-listed firm announced an 82% increase in full-year EBITDA, Tjärnström said the company’s strong organic growth enables it to be selective and pick acquisitions which fit into its long-term strategy.
But he refused to rule out an acquisition before the end of the year, adding “we are active and we’re looking at opportunities and we don’t rule anything out.”
“We’ve got a lot of opportunities coming our way and we will evaluate them on a case-by-case basis and when we have something more concrete to communicate we will do so,” Tjärnström said.
“Strong organic growth is a good pillar for us, but if we can find strategically fitting acquisitions to add on top of that then we will do so,” Tjärnström added.
Re-regulated markets
Unibet has completed a number of strategic acquisitions in recent years including a 13.5m deal for rival Scandinavian operator Bet24 in 2012.
The operator had previously gained entry into the French and Australian online gambling markets with the acquisitions of Solfive SAS and Northern Territory-licensed bookmaker Betchoice respectively.
In today’s results the operator reported that 27% of gross winnings revenue was now derived from locally regulated markets but that could well increase in the coming years with regulatory movement expected in both Sweden and Norway, core Unibet markets.
“Long-term we expect to get up to the 100% mark but of course it depends on how the developments take shape in the respective markets,” Tjärnström said.
“We’re transforming the business and now 27% of the business is from re-regulated and locally regulated markets which means we’ve been able to absorb an increase in betting duties over the years,” he added.
According to figures released this morning, the operator paid £23.6m in betting duties last year, up 40% year-on-year compared to £16.5m in 2013.
“If you look back at 2010, that was probably more like £1m, so it’s a significant absorption we’ve managed over time,” Tjärnström added.