Casino revenue increased by 20 percent
Fourth quarter
- Revenue amounted to SEK 1,118.5 (1,041.1) million, an increase of 7 percent.
- Revenue in the region Nordic amounted to SEK 556.9 (475.5) million, an increase of 17 percent.
- Casino revenue amounted to SEK 823.7 (684.0) million, an increase of 20 percent.
- Mobile revenue amounted to SEK 546.8 (373.3) million, an increase of 46 percent. Mobile revenue is now 49 percent of total revenue.
- Betsson has the largest mobile casino offering in the market with 1,246 different games and revenue from mobile casino grew by 83 percent.
- Operating income amounted to SEK 265.1 (174.4) million and the operating margin was 23.7 (16.7) percent. The operating income in the fourth quarter was charged with a non-recurring cost of SEK 10.3 million related to acquisition and in the fourth quarter 2015 there was a non-recurring cost of SEK 103.8 million.
- Net income amounted to SEK 243.6 (159.1) million, corresponding to SEK 1.76 (1.15) per share.
- Deposits in all of Betsson’s gaming solutions amounted to SEK 3,947.1 (3,471.4) million, corresponding to a growth of 14 percent.
- The acquisition of the horse betting operator RaceBets was closed by December 30, 2016.
- During the fourth quarter, Betsson issued a three year unsecured bond of SEK 1 billion, within a SEK 2 billion frame.
Full year period
- Revenue increased by 11 percent to SEK 4,117.3 (3,722.0) million. Casino revenue, which constitute 71 percent of Betsson’s total revenue, grew by 14 percent.
- Operating income amounted to SEK 946.4 (886.4) million, and the operating margin was 23.0 (23.8) percent.
- Net Income amounted to SEK 878.0 (831.7) million, corresponding to SEK 6.34 (6.02) per share.
- Cash flow from operating activities amounted to SEK 1,168.5 (1,154.5) million.
- The Board of Directors proposes distribution of SEK 658.9 (624.3) million to shareholders, which corresponds to SEK 4.76 (4.51) per share.
Comment from Ulrik Bengtsson, CEO Betsson AB:
“Betsson’s positive development continues and the first quarter 2017 has started strong. The stable Casino business was 74 percent of revenue in the fourth quarter and Betsson’s brands continue to gain market shares in the segment. Also Betsson’s largest region, the Nordics, grew faster than the market and region Western Europe returned to growth. An increase of deposits by 14 percent and record level in active players shows a strong underlying momentum. In total, the growth in the quarter was 7.4 percent, despite decline in region Central and Eastern Europe and Central Asia (CEECA), compared to the fourth quarter 2015.
Betsson has made significant investments in product development throughout 2016, which has pushed the Casino growth. The Sportsbook investments are expected to have a positive effect in 2017. The acquisition of the horse betting operator RaceBets adds an important product to Betsson’s Sportsbook offering and adds revenue from mainly locally regulated markets. The share of revenue from locally regulated markets is increasing, in accordance with our strategy, and is now close to 20 percent.
Increased investments in product development, higher share of revenue from regulated markets and less revenue from countries with high margin have had a negative impact on earnings during the year. The operating margin for the full year was 23 percent despite a very weak second quarter. This shows that Betsson has a good balance in its business and can absorb both temporary revenue decline and increased costs, over time.”
Presentation of the year-end Report
Today, Thursday, 9 February, at 9:00 AM CEST, Betsson’s CEO, Ulrik Bengtsson, will present the Year-end Report from Betsson’s office at Regeringsgatan 28, Stockholm, Sweden. The presentation will be held in English and followed by a question and answer session.
Webcast: www.betssonab.com or http://edge.media-server.com/m/p/ezwbg5y6
Phone: on +46 (0)8 505 564 74 (SE), +44 (0)203 364 53 74 (UK), or +1 (0) 855 753 22 30 (US).
For further information, please contact:
Ulrik Bengtsson, President and CEO +46 (0) 8 506 403 00
Fredrik Rüdén, CFO, +46 (0) 8 506 403 00, fredrik.ruden@betssonab.com
Pia Rosin, VP Corporate Communications +46 (0)736 00 85 00, pia.rosin@betssonab.com
This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact personw set out above, at 07.30 CET on February 9th 2017.
