Casino and Sportsbook Lead Betsson to Q3 Growth
4th November 2009 8:47 am GMT
Sweden's Betsson AB has reported revenues of SEK316.7 million (€30.3 million) for the third quarter of 2009, an increase of 26% on the corresponding period last year following strong performances from its casino and sportsbook products.
Betsson's casino product continues to be the company's most profitable offering, accounting for 69% of total gross profit in the quarter, up from 62% a year ago, while poker's contribution fell to 11% from 18% last year. With a strong improvement in the company's sports betting volume, sportsbook gross profit accounted for a further 16% of the total with other products contributing the remaining 4%.
Betsson recorded an overall gross profit for the quarter of SEK253.0 million, an increase of 24% on the corresponding period last year.
Marketing costs increased 25% to SEK104.4 million, with personnel expenses up 37% to SEK34.9 million as Betsson looks to meet the expected growth of the company. As a result income for the period amounted to SEK75.6 million, up 19% versus Q3 2008.
Geographically, the Nordic market continues to be Betsson's strongest market, accounting for 61% of gross profit during the quarter, with non-Nordic European countries contributing 13% and the rest of Europe 26%.
During the quarter, Betsson had 220,872 active customers, up 19% quarter-on-quarter, from a total registered customer base of 1.9 million.
"We are happy to see that gross turnover in sportsbook continues to be high compared with comparable figures. Casino also develops strongly, partly due to partner co-operations," said Betsson's President and CEO, Pontus Lindwall.
For the nine month period, revenues increased 28% to SEK916.8 million with income for the period up 22% to SEK213.3 million.
Betsson also confirmed that it has signed an agreement with one of the largest media houses in Germany, ProSieben Sat1, under which the company will broadcast a new TV gaming solution, Betsson.tv - The Show, on TV channel 9Live where players can phone in to play live roulette for a chance to win up to €1,000.
As at September 30th the company held cash and cash equivalents of SEK396.0 million, up from SEK213.5 million a year ago.
Shares in Betsson AB (Co. Profile) (OMX:BETS-B) have gained 4.23% to SEK111.00 per share in Stockholm this morning following the announcement.
