Swedish gambling operator Betsson posted its financial results for the quarter ended June 30, 2016 and the first half of the year. Overall revenue for the quarter amounted to SEK935.4 million, up 9% year-on-year from the SEK860.6 million reported for the same period of the previous year.
Revenue from casino operations rose 11% to reach SEK683.2 million and accounted for 73% of the overall figure posted for the reviewed three months. Sportsbook generated a total of SEK223 million, up 8% year-on-year. Betsson pointed out that the revenue generated from sports betting operations was lower than expected and attributed this to a lower sportsbook margin.
Revenue from mobile totaled SEK383.1 million, reflecting a 34% increase from the previous year. It represented 41% of the overall Group revenue.
Betsson generated operating income of SEK158.3 million, down from the amount of SEK213.8 million posted for the same three months of 2015. Operating margin stood at 17%, compared to operating margin of 25% reported for the second quarter of the previous year. The gambling operator noted that unfavorable exchange rate fluctuations affected operating income in a negative manner.
Income before tax totaled SEK156.4 million. In comparison, a total of SEK212.3 million was reported for the same quarter of the previous year. Net income amounted to SEK146.4 million, down from the SEK201.6 million generated during the three months ended June 30, 2015.
During the second quarter of the year, the company had 563,247 active players, up 58% from the same period of the previous year. Customer deposits increased 11% year-on-year to SEK3.5 billion. These included deposits from all gambling solutions the company offered during the period in review.
Betsson generated revenue of SEK1.9 billion during the first half of the year, up 13% year-on-year. Operating income totaled SEK408.4 million, down from the amount of SEK451.8 million posted for the same six-month period of 2015. The company generated income before tax of SEK405.3 million, down from SEK448.7 million reported for the first half of the previous year. Net income amounted to SEK380.3 million. In comparison, the amount of SEK425.7 million was posted for the six months ended June 30, 2015.
Commenting on the latest results published, Betsson CEO Ulrik Bengtsson said that these “did not live up” to original expectations and were mainly impacted by unfavorable currency impacts and lower than expected sportsbook margins. In addition, the official pointed out that certain markets generated lower revenue mainly due to regulatory challenges.
Mr. Bengtsson further commented that all the operator’s subsidiaries have taken due measures to improve overall performance, including improvements in sports betting offering, new product launches, and upgrades in the existing casino offering. As the official noted, Betsson has already started bearing fruit from the changes implemented as a strong uplift in the number of active customers was noticed towards the end of this year’s second quarter.
