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Betsson Group – strong full-year operating profit thanks to geographical spread and efficient organisation

George Miller

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Betsson Group - strong full-year operating profit thanks to geographical spread and efficient organisation
Reading Time: 3 minutes

 

QUARTER OCTOBER – DECEMBER 2019

  • Group revenue was SEK 1,289.5 (1,436.6) million, a decrease of 10 percent with an organic  decrease of 11 percent.
  • Casino revenue declined by 10 percent and Sportsbook revenue declined by 9 percent. The sportsbook margin was 6.8 (7.3) percent.
  • Operating income (EBIT) was SEK 200.5 (341.5) million. The variance was mainly due to decreased revenue. The EBIT margin was 15.5 (23.8) percent.
  • Operating cash flow amounted to SEK 237.8 (289.3) million.

FULL YEAR 2019

  • Group revenue was SEK 5,173.0 (5,419.8) million, a decrease of 5 percent, reported and organic.
  • Operating income (EBIT) was SEK 865.0 (1,193.8) million, corresponding to an operating margin of 16.7 (22.0) percent.
  • Net income was SEK 787.1 (1,078.1) million, corresponding to SEK 5.69 (7.79) per share.
  • Operating cash flow amounted to SEK 1,150.3 (1,273.3) million.
  • The Board of Directors proposes to the AGM that SEK 393.1 (538.4) million, which corresponds to SEK 2.84 (3.89) per share, is distributed to shareholders.

FOURTH QUARTER

Revenue for the fourth quarter was SEK 1,289.5 million, a decrease compared to the same quarter last year but an increase compared to the previous quarter. Development in Sweden, Norway and the Netherlands have continued to be weak, while other markets in which Betsson operates, locally regulated and non-locally regulated, have performed well. The sportsbook margin for the fourth quarter at 6.8 percent is slightly lower than the previous two quarters, which impacted the sportsbook’s revenue for the quarter negatively. Sportsbook gross turnover on the other hand, have developed strongly both during the fourth quarter and the full year 2019, with an increase during the quarter of 15 percent compared with the same period last year and 6 percent for the full year. Operating profit (EBIT) for the fourth quarter amounted to SEK 200.5 million, which corresponds to an operating margin of 15.5 percent.

CEO COMMENTS

2019 full-year operating profit of SEK 865 million shows that  Betsson can deliver despite several market challanges

“We are proud to present an operating profit for the full year 2019 of SEK 865 million. The operating profit shows Betsson’s ability to deliver profitability, also during the challenges that 2019 entailed. We had expected some recovery in the closing fourth quarter, above all in the Swedish market, but we did not reach our objectives there. Up until now, one year after the Swedish re-regulation, we have still not seen the market consolidation that we expect due to the great number of operators, many of them showing no profitability. On the other hand, we have seen declining channelisation, which makes it difficult for the licensed operators who pay 18 percent gaming tax and it also jeopardizes consumer protection. High channelisation contributes to competition on equal terms for the companies in the sector that operate in the Swedish market.

During its long history, Betsson has grown more than the market. In 2019, we had a notch in this curve, but our long-term ambition to grow more than the market, organically and through acquisitions, remains. Our efficient organisation, the strong cash flow and the strong financial position provide a good foundation for acquisitions. During the fourth quarter we made a minor strategic acquisition and continue to analyse several opportunities, both in locally regulated markets and in markets that will be regulated. By further increasing the geographical distribution, we can reduce the impact of temporary downturns in individual markets.

The geographical and product distribution provide stability and also gives us the opportunity to be sustainable in our long-term efforts to run a profitable business with growth and good margins. Betsson is continuously investing in the development of the product offering and it is gratifying to get an acknowledgment that we do the right things. We saw an increase in active customers during the fourth quarter by 3 percent compared to the fourth quarter of last year 9 percent compared to the third quarter. Our in-house developed sportsbook with constantly improved performance delivers good customer experiences, sales growth and good profitability. The high performance also makes it an attractive third-party product. We have previously stated that our ambition is to offer the sportsbook to external customers and we have concluded the first deal with a third party at the beginning of the current year. We are now looking forward to the European Football Championship in June.”

ABOUT BETSSON:

Betsson AB (publ) is a holding company that invests in and manages fast-growing companies within online gaming. The company is one of the largest in online gaming in Europe and has the ambition to outgrow the market, organically and through acquisitions. This should be done in a profitable and sustainable manner, primarily in locally regulated markets. Betsson AB is listed on Nasdaq Stockholm Large Cap (BETS).

Betsson’s operational subsidiaries’ vision is to deliver the best customer experience in the industry. They offer casino, sportsbook and other games via gaming licences in twelve countries in Europe and Central Asia. The business model is to offer gaming under multiple brands, including Betsson, Betsafe, NordicBet and Casinoeuro. The brands are operated on a proprietary platform, which is the core of the offer and the customer experience.

Being a responsible operator in relation to customers, suppliers, authorities, investors and other stakeholders is a cornerstone of the Betsson’s business. Betsson is a member of the European Gaming and Betting Association (EGBA), ESSA (Sports Betting Integrity) and G4 (The Global Gambling Guidance Group).

Learn more about the Group on www.betssonab.com

EveryMatrix Press Releases

Spearhead Studios reveals Black Forest

George Miller

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Spearhead Studios reveals Black Forest
Reading Time: 2 minutes

 

Black Forest is the latest slot title of Spearhead Studios, the gaming company within EveryMatrix Group. Following a busy month of July with 5 new titles launched, Black Forest is set to join Spearhead Studios slots portfolio.

Inspired by the fairy tale mythology associated with this historical German woodland, Black Forest is a slot designed with the German market in mind. The dark, magical theme sets the player in a fantasy world filled with mystery.

The medium-volatility slot offers Random Wilds, Free Spins, Expanding Symbols and a Card Gamble option, and the woodland creatures can bring wins of 2,200x. Available in the 96.04% RTP variant.

Mathias Larsson, Managing Director of Spearhead Studios, says: “Following up our Super July, we are already releasing another exciting title, Black Forest. This is a game true to our motto, local games for local markets, and I am confident that it will be a perfect match for Germany and some Eastern European markets.”

Kevin Corti, Game Development Director at Spearhead Studios, comments: “Designed around a dark, magical, fantasy theme, this 9 payline slot offers random mystery wilds, free Spins which can re-trigger, and the marquee feature; “Lord Of The Forest” in which, the top paying symbol can expand on any reels it lands to create new and/or expanded wins, delivering additional big win potential. The game also offers card and ladder gamble options.”

Visit SpearheadStudios.com to test our games and drop us a line at [email protected] for the integration details.

 

About Spearhead Studios:

Spearhead Studios is the real-money game production studio within EveryMatrix group of companies. Here at Spearhead Studios we believe in challenging the ordinary. We develop high-quality HTML5 video slots, table and other online real-money games. Our aim is to disrupt the industry by making gaming both fun and fair for everyone. Our mission is to change the game of game making. We are not game makers; we are game changers.

 

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Latest News

ALOT Solutions announces appointment of Chief Financial Officer

George Miller

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ALOT Solutions announces appointment of Chief Financial Officer
Reading Time: < 1 minute

 

ALOT Solutions today announces the appointment of Mr. Geaspar Byrne as Chief Financial Officer of the Company, effective 1st August, 2020.

Geaspar has been a senior consultant to ALOT Solutions and its predecessor, Lottoland Solutions, since 2017. He has more than 21 years’ experience of corporate finance, accounting, internal control, corporate governance, risk, strategy, business development and growth management across international markets. Prior to 2017, he held senior positions with leading global institutions including Alibaba Group (AGTech Holdings) and Deutsche Bank. Geaspar is a Chartered Financial Analyst, holds a degree in Financial & Business Economics and is a member of the Financial Times Non-Executive Directors’ Club.

Commenting on the appointment, Michael Carruthers, CEO of ALOT Solutions said: “I am delighted to welcome Geaspar to the role of Chief Financial Officer. Geaspar will play a leading role in shaping and delivering our strategy and will ensure that our finance function continues to develop in a way that supports our ambitious growth plans. At a time when our development is accelerating, Geaspar brings an ideal combination of in-depth understanding of the business as well as significant corporate finance experience.”

Geaspar Byrne said: “I am very excited to be expanding my role with ALOT at this important time in the Company’s development. I look forward to working closely with Mike and the rest of the executive team to facilitate the successful delivery of our strategy.”

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Latest News

Booongo secures major content agreement with Rush Street Interactive

George Miller

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Booongo secures major content agreement with Rush Street Interactive
Reading Time: 2 minutes

 

RushBet.Co set to go live with developer’s games in Colombia

Booongo, the global online slots developer, has signed a deal to provide games to Rush Street Interactive (RSI) for its online brand in the Colombian market, RushBet.co, further strengthening the developer’s presence in the regulated market.

The commercial agreement will give the online casino access to Booongo’s wide range of popular titles including Great Panda, Tiger’s Gold and Super Marble: Hold and Win, the latest release from its portfolio of Hold and Win games.

As part of the deal, Booongo’s offering will also be made available through the operator’s popular social gaming offering in the US.  Rush Street Interactive (RSI) is the first United States-based gaming operator to launch a legal and regulated online sportsbook on a national basis in Latin America and is a market leader in online casino and sports betting in the U.S.

This new deal with Rush Street Interactive is an important step for Booongo, which continues to build the reach of its content throughout Colombia in the LatAm gaming market.

Sebastian Damian, Commercial Director at Booongo, said: “Partnering with a highly regarded operator such as Rush Street Interactive, known for its high standards and integrity, further demonstrates the quality of our games here at Booongo. We are thrilled to be offering our popular slots and innovative engagement tools to Rushbet.co, here in Latin America where the regulated market in Colombia is thriving, as well as our debut in the U.S. with social casino players.”

Omar Calvo, GM for Rushbet.co Colombia, said: “Booongo has a fantastic reputation for delivering games of the highest quality within the LatAm market and we know the addition of its exciting portfolio will be welcomed by our players. Coupled with our own market-leading engagement tools, we envisage a long and prosperous relationship with the company as we look towards the future across the Americas.”

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