Betsson Delivers A Respectable Performance

BETSSON DELIVERS A RESPECTABLE PERFORMANCE

26th October, 2012 at 07:04:07
Source: http://www.azonlinecasinos.com

Increase in revenues but drop in operating income

Gaming operator Betsson released its third quarter and interim report showing strong growth in the firm's sportsbook but a drop in net income attributed in part to acquisition-related expenses.

Key performance indicators for the third quarter include:

- Revenues amounted to SEK 529.5 million (SEK 465.7 million), equivalent to an increase of 14 percent

- Operating income amounted to SEK 120.0 million (SEK 152.8 million)

- Gross turnover in Sportsbook, including all gaming solutions, amounted to SEK 2,921.4 million (SEK 1,816.6 million), of which NGG contributed SEK 594.8 million. This represents an increase of 61 percent

- The Sportsbook margin after free bets was 5.5% (7.6 percent), which is a seasonally low margin

- Income before tax amounted to SEK 118.3 million (SEK 146.5 million)

- Net income amounted to SEK 113.1 million (SEK 138.4 million), corresponding to SEK 2.68 (SEK 3.40) per share

- Customer deposits in all of Betsson's gaming solutions amounted to SEK 1,756.0 million (SEK 1,483.6 million), which is an All Time High and represents an increase of 18 percent

- The Company's external financing has decreased by SEK 35,4 Million during the quarter, to - SEK 396.4 million

- The shares in the subsidiary Angler Gaming were distributed to the shareholders at the beginning of the third quarter

Key performance indicators in the Interim period include:

- Revenues increased by 27% to SEK 1,551.8 million (SEK 1,221.4 million)

- Operating income amounted to SEK 403.6 million (SEK 387.4 million)

- Income before tax amounted to SEK 400.2 million (SEK 382.5 million)

- Net income amounted to SEK 380.8 million (SEK 362.0 million), corresponding to SEK 9.09 (9.08) per share

"The strong growth in activity in Betssons Sportsbook is a proof that investments have been successful. Revenues have been negatively affected by a low sportsbook margin amounting to 5.5 percent. However, the margin was stronger in the beginning of the fourth quarter and amounted to above 8.0 percent. The migration problems earlier communicated are well identified and a number of improvement initiatives are executed. These experiences together with high activity on Betssons different gaming sites as well as leading technology in the mobile segment, will give a continued strong development for Betsson," commented Magnus Silfverberg, President and CEO of Betsson.

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