Group revenues in the second quarter 2016 are estimated to be between SEK 920 million and SEK 945 million, and the operating profit (EBIT) is estimated to be between
SEK 140 million and SEK 175 million. Lower sportsbook revenues and unfavourable exchange rate fluctuations have had a negative impact on Group revenues and earnings for the second quarter.
Sportsbook revenues are estimated to be between SEK 205 million and SEK 230 million, compared to SEK 206.4 million in Q2 2015. The lower than expected revenue is an effect of lower turnover in multiple markets, as well as losses in a strategic market. In addition, Betsson has closed a number of European markets during the past twelve months, as a consequence of a more conservative stance on what markets to accept players from. The restrictions are also an effect of changes in the regulatory landscape and unclear tax regulation.
Exchange rate fluctuations are estimated to have a negative impact on revenues of approximately SEK 30 million. The decrease in revenue has direct impact on earnings as a large proportion of costs are fixed costs.
- April and May were challenging months for us in terms of sportsbook margin, but June looks better and activity is in line with expectations. The strong inflow of new customers during the UEFA Euro 2016 will benefit us going forward. Betsson’s ambition to increase the share of revenue from locally regulated markets and continue to grow our business long-term, organically and through acquisitions, remains, says Ulrik Bengtsson, President & CEO of Betsson AB.
Betsson will publish its report for the second quarter on July 21, 2016.
For further information, please contact:
Ulrik Bengtsson, President & CEO, +46 (0)8 506 403 00, or
Pia Rosin, VP Corporate Communication, +46 (0)736 00 85 00, pia.rosin@betssonab.com
