Betsson growth continues as revenues rise 24%
Strong Q1 performance driven by 34% increase in marketing investment and 43% growth in deposits
Betsson AB this morning posted a 24% rise in Q1 2015 revenues, growth the company has attributed to the ongoing success of its multi-brand, single platform strategy.
Revenues for the three months ended 31 March were SEK847m (£65m), up from SEK686 (£53m) last year, while profits grew 39% to SEK238m (£18.2m) on the back of a 28% operating margin, the highest level for three years.
Sportsbook enjoyed a particularly strong period with gross turnover up 60% to SEK6bn (£460m) while revenues derived from mobile more than doubled to SEK233.3m (£17.8m), which represented 48% of sportsbook turnover and 28% overall.
Casino revenues, which make up a little more than two-thirds (69%) of the business, climbed 28% to SEK585 (£45m), partly due to the contribution its Netherlands-facing Oranje and Kroon brands, which were acquired during the comparable period in 2014.
Customer deposits across the three months jumped 43% to SEK3.2bn (£240m) while the overall growth of the business saw marketing expenses rise 34% to SEK166.2m (£12.7m), or 20% of revenues, with more investment funnelled into non-Nordic markets such as the UK and Italy.
Speaking to analysts following the results disclosure, Betsson chief executive Magnus Silvferberg said the “very strong” results were due to the operator’s continued focus on its multi-brand strategy, which last month saw it close down two underperforming brands – DanmarksAutomaten and Maxino.
“Betsson is continuing to deliver on its multi-brand and single platform strategy,” Silfverberg said. “We are constantly working to optimise our portfolio of brands by either starting up brands, acquiring brands or closing brands,” he added.
Silvferberg said the firm had merged the customer databases of DanmarksAutomaten and Maxino with current brands Casino.dk and CasinoEuro respectively, although added he couldn’t rule out a return for Maxino at some point in the future.
The operator also migrated its Kroon and Triobet brands onto its proprietary Techsson platform, which Silfverberg said would give them more tools to grow, such as greater marketing and CRM capability. Around 87% of revenues are now derived via the Techsson platform with the remainder set to be converted by the end of the year.
In addition, the firm said it had taken full control of Betsson.com in Peru, a business which had previously been managed on a B2B arrangement.
Earlier this month eGaming Review revealed Betsson was in negotiations over a potential 100m acquisition of Georgian operator Europe-Bet, however Silfverberg refused to comment specifically on the report only to say the company would continue to scope-out M&A opportunities.
Betsson AB’s share price had risen 1.5% to SEK36.47 after early morning trading.