Swedish online gambling operator Betsson AB today reported its financial results for the quarter ended September 30, 2016. Revenue for the period was up 9% year-on-year to reach SEK1.1 billion.
Revenue from online casino operations comprised the greater part of the overall figure reported. It amounted to SEK731.8 million, reflecting an increase of 11% from the prior-year period. Sports betting revenue stood at SEK300.2 million, up 9% from the same three months of 2015.
Mobile revenue increased substantially during the third quarter of the year. Proceeds from this type of gambling operations totaled SEK504.2 million, up 55% from the amount of SEK326.1 million posted this time last year. Mobile revenue accounted for 47% of the overall group revenue generated during the reviewed three months.
Operating income totaled SEK272.9 million, up from SEK260.2 million reported for the prior-year period. Operating margin stood at 25.7%. Net income also increased during the third quarter of 2016 to reach SEK254.1 million from the SEK247 million generated in the three months ended September 30, 2015.
Customer deposits across Betsson’s brands rose 9% year-on-year to SEK3.5 billion. Most recently, the Swedish gambling group acquired Lithuania’s Lošimų strateginė grupė, UAB. The locally licensed operator will secure its new parent with growing exposure in the Baltic gambling markets.
During the nine months ended September 30, 2016, Betsson generated revenue of almost SEK3 billion, up 12% year-on-year. Operating income totaled SEK681.3 million, down slightly from the amount of SEK712.1 million posted for the same period of the previous year. Net income also decreased from 2015. It amounted to SEK634.5 million during the nine months ended September 30, 2016, down from SEK672.7 million.
Commenting on the group’s latest financial results, CEO Ulrik Bengtsson said that as it could be seen from the figures reported, the challenges Betsson faced during this year’s second quarter were ones of temporary nature and that the company has improved its performance considerably over the last three months.
Mr. Bengtsson further noted that investments in casino and sports betting products have proved to be important revenue growth drivers and that these investment efforts will be maintained in the quarters to come. According to the official, the scalable business model implemented by the group has made it possible for the operating margin to improve to better levels.
