Betsson AB - Revenues for the second quarter increased by 30 percent

SWEDEN


Revenues for the second quarter increased by 30 percent

Second quarter

  • Revenue increased by 30 percent and amounted to SEK 752.3 (579.2) million, an organic growth of 15 percent.
  • Gross profit in Casino increased by 37 percent and amounted SEK 433.6 (316.0) million, an organic growth of 13 percent. 
  • Operating income amounted to SEK 190.4 (137.8) million. Income before tax amounted to SEK 187.5 (137.5) million.
  • Net income amounted to SEK 176.6 (128.3) million, corresponding to SEK 3.84 (2.95) per share.
  • Customer deposits in all of Betsson’s gambling solutions amounted to SEK 2,613.4 (2,017.8) million.
  • The brands Oranje and Kroon Casino contributed SEK 87.8 million to the Group’s revenues and SEK 55.3 million to net income.
  • Betting on the FIFA World Cup comprised 4 percent of the Group’s revenues in the second quarter, contributing positively to the Group’s net income.

The Interim Period

  • Revenue increased by 18 percent to SEK 1,438.3 (1,217.9) million.
  • Operating income amounted to SEK 361.5 (298.9) million.
  • Income before tax amounted to SEK 354.1 (297.5) million.
  • Net income amounted to SEK 334.3 (280.2) million, corresponding to SEK 7.41 (6.49) per share.

Key Performance Indicators (MSEK)

    Q 2 Q 2 Jan-Jun Jan-Jun Full year
    2014 2013 2014 2013 2013
Total            
Revenues   752.3 579.2 1,438.3 1,217.9 2,476.7
Gross Profit   629.7 482.7 1,208.4 1,022.9 2,073.9
 of which Sportsbook   166.6 126.6 342.4 290.6 577.4
Operating income   190.4 137.8 361.5 298.9 601.1
Liquid funds   433.2 317.5 433.2 317.5 562.5
Active customers (thousands)   381.4 428.7 381.4 428.7 401.4
Registered customers (thousands)   7,475.4 6,354.9 7,475.4 6,354.9 6,732.7
Customer deposits    1,939.4 1,445.9 3,510.2 2,957.1 6,064.5
Customer deposits, all gaming solutions   2,613.4 2,017.8 4,826.0 4,131.7 8,421.1
 B2C Sportsbook1            
 Gross turnover, Sportsbook   1,474.2 1,129.9 2,805.2 2,360.6 5,024.0
 Gross margin, Sportsbook   5.3% 5.2% 5.8% 6.0% 5.7%
 Gross profit, Sportsbook   78.6 58.9 164.1 141.7 288.0
             
 B2B Sportsbook1            
 Gross turnover, Sportsbook    2,666.2 2,317.7 5,115.9 4,960.7 9,791.3
 Gross margin, Sportsbook   3.3% 2.9% 3.5% 3.0% 3.0%
 Gross profit, Sportsbook from third party   88.0 67.7 178.3 148.9 289.4

1. Refers to margin after allocated expenses. The margin after free bets in all gambling solutions amounted to 7.0 (6.5) percent.

 

The strategic initiatives and the FIFA World Cup resulted in strong organic growth

- Betsson posted organic growth of 15 percent during the second quarter, which proves that the Companys strategic initiatives are continuing to show results and that the Company provides a world class customer experience. The FIFA World Cup had a positive effect and attracted many new and old customers, which is also favourable longer term. Furthermore, gross turnover for all gambling solutions within Sportsbook increased by 20 percent. The recently acquired Dutch brands also contributed strongly, with a growth of 13 percent. Betsson´s focus in profitable growth gives the highest margins in the industry over time, says Magnus Silfverberg, the President and CEO of Betsson.

Presentation of the Interim Report

Today, Friday 18 July at 09:00 CET, Betssons CEO, Magnus Silfverberg, will present the Interim Report from Betssons office at Regeringsgatan 28, and through webcast on www.betssonab.com or http://www.media-server.com/m/p/yohv937y  or by phone on +46 (0)8 505 564 74 (Sweden), +44 (0)203 364 53 74 (UK), or +1 (0) 855 753 22 30 (US). The presentation will be in English and followed by a question and answer session.

 


Attachments

Q22014ENG.pdf