Company resilience praised as Betsson Group dissects a strong third quarter

The Betsson Group has published its Q3 trading update and reported that the group has “profited from solid growth continuing across all regions,” driven by a diversified product and brand portfolio, global footprint and strong finances. 

Lauding a return to organic growth in the Nordics, with new ‘pay and play’ brand Jalla Casino which launched in Sweden in April drawing particular praise, revenue for the quarter came in at SEK 1.67bn, a 31 per cent increase from SEK 1.27bn year-on-year, with growth reported across all regions.

Mobile revenue was SEK 1.27bn (2019: SEK 919.1m), representing 76 per cent (2019: 72 per cent) of total revenue. 

Casino revenue rose 39 per cent from SEK 942.2m to SEK 1.3bn, with mobile’s SEK 984.1m (2019: SEK 666.7m) accounting for 75 per cent (2019: 71 per cent) of that figure. 

Sportsbook revenue increased 12 per cent to SEK 352.6m (2019: SEK 314.6m), with mobile coming in at SEK 281.1m (2019: SEK 253.7m) and accounting for 80 per cent (2019: 81 per cent) of sportsbook revenue.

On a regional basis, revenue for the Nordics was SEK 558.9m (2019: 476.7m), an increase of 17 per cent, with Western Europe finishing up at SEK 486.5m (2019: 396.7m), a 23 per cent rise.

Central and Eastern Europe and Central Asia jumped 40 per cent to SEK 447.1m (2019: SEK 319.6m), as the rest of the world recorded a 124 per cent boost from SEK 82.2m to SEK 184.2m.

“Betsson presented another strong result in the third quarter. The last two quarters have been defined by extraordinary challenges for everyone. Despite this, Betsson has both expanded into new markets and developed new products and features,” explained Pontus Lindwall, president and CEO of Betsson.

“The positive development is partly attributable to the increased demand for digital entertainment through the pandemic. The online gambling industry has more clearly than ever demonstrated its resilience to market fluctuations during the pandemic when compared to many other sectors. 

“Betsson has a unique position in being more resilient than the sector average due to the company’s diversified product and brand portfolio, global footprint and strong finances.” 

Gross profit for the quarter saw a 31 per cent rise to SEK 1.08bn (2019: SEK 830.8m), net income reached 290.6m, a 60 per cent increase from SEK 181.8m and EBITDA was reported as SEK 416.6, representing a 37 per cent uplift from SEK 304.2m.

Revenue for the year-to-date, for the period to September 30, 2020, increased 19 per cent to SEK 4.62bn, a 19 per cent increase from SEK 3.88bn, gross profit reached SEK 2.98bn, up 15 per cent from SEK 2.58bn net income saw a 22 per cent rise to SEK 713m (2019: SEK 582.7m), and EBITDA finished up at SEK 1.07bn, representing a 15 per cent boost from SEK 937.5m.

“Betsson profited from solid growth continuing across all regions and I am particularly pleased to see a return of organic growth in the Nordics again, with the star performer being the new ‘pay and play’ brand Jalla Casino, launched in Sweden in April,” continued Lindwall

“To ensure and maintain the safety of the customer during the pandemic, Betsson procatively increased vigilance with respect to responsible gambling. The number of interactions and interventions has increased significantly compared to the previous quarters.”

The group did not present an outlook for the period ahead due to the uncertainty of overall impact and duration of the COVID-19 crisis as well as regulatory changes in key markets, and instead reasserted a long-term goal of showing stronger growth than the market.