Betsson Profits Increase By 22%
Betsson’s revenue is up by 22% in the third quarter in comparison to the same period the previous year irrespective the increase in marketing costs of 19%.
Based on its third quarter results, Betsson notified shareholders that its overall group revenue increased by 22% compared to 2009 the same period, rising to SEK 385.1m (£36.4m) from SEK 316.7m (£30m), while gross proceeds have risen by 19% year-on-year from SEK 253m to SEK 301.6m.
Betsson’s sports book had a bumper third quarter, rising 91% year-on-year from SEK 634.9m to SEK 1,215.7m. The majority is thanks to live betting, soaring to 278% to SEK 733.7m from SEK 194.2m. Casino earnings remained sluggish since 2009, a spokesperson of the company said, but still passed 57.7% of the takings for the third quarter.
Marketing expenses increased by 19% to SEK 124m in comparison to SEK 104.4m in Q3 2009, although CEO Pontus Lindwall did not explain why that there was a change in the marketing plan for each vertical pending on the region and market incursion.
”The Nordic region saw gross profit decline by 7%, as a result of a 25% decline in poker. Overall Gross profit in the EU abroad declined by 6%, which Lindwall ascribed to Betsson closing its minute French business and halted activity in Germany “vagueness” pertaining to German legislation. “Some European markets were initially very slow on the uptake during this quarter,”Lindwall said.”
Lindwall continued that the company was in “on the final stage” on B2B deals and that these were with a “wide base” of companies from “smaller companies with a history prepared to use our platform. Large companies owned and operated by the state, trying to get a piece of the sector”. We have our sights on new markets, such as the Italian one, said new markets Betsson’s chief executive, he feels that the present Danish legislation inhibits internet casino gambling.
eGaming Review announced in September that Betsson delayed its decision to apply for a Danish license after the proposed ‘black period’ requiring operators to stop activity in the market until further notified.
Lindwall admitted, the company had “potential partners in America” and Asia is also a potential; market to get their teeth stuck into”. New legislation in Finland prohibits foreign internet casinos in any marketing prohibiting Betsson from marketing its products there. Lindwall mentioned and opposes Finnish gambling legislation as “in conflict of interest with local consumers”.[addtoany]