Swedish gambling operator Betsson AB today provided trading update on its financial results ahead of the end of this year’s second quarter. The company said that it expects revenue of between SEK920 million and SEK945 million to be generated within the period in review.
According to latest estimates, EBIT/operating profit will amount to between SEK140 million and SEK175 million. The gambling operator pointed out that quarterly revenue and earnings have been impacted by lower than expected sports betting revenue and unfavorable exchange rate fluctuations.
The company generated sportsbook revenue of SEK206.4 million in the second quarter of 2015. Revenue of between SEK205 million and SEK230 million is expected to be reported for the three months ended June 30, 2016.
Betsson pointed out in its trading update that the revenue decrease is the result from lower than expected turnover from a number of markets as well as from substantial losses in a key market. The operator further noted that it has left a number of European markets over the past year due to “more conservative stance” on the markets they accept gambling customers from. The afore-mentioned restrictions have been implemented due to regulatory changes and improper tax regulations in certain jurisdictions.
As mentioned above, exchange rate fluctuations are also to impact negatively the company’s quarterly revenue. They are to result in an approximate SEK30-million decrease in turnover.
Commenting on the gambling operator’s expected financial results for this year’s second quarter, President and CEO Ulrik Bengtsson said that April and May were difficult months “in terms of sportsbook margin.” However, the official pointed out that activity in June was absolutely in line with expectations and the strong inflow of new gambling customers in relation to the UEFA Euro 2016 would most certainly benefit the company.
Of their plans for the rest of the year, the executive said that Betsson will continue implementing its strategy to extend its reach in regulated markets and to increase revenue from those. In addition, the Swedish operator would keep on working on its further growth, both organically and by looking for acquisition opportunities.
