Publishing its Q4 and full-year 2018 results, the governance of Stockholm-listed online gambling group Betsson AB, has detailed a successful year-1 integration and execution of its corporate recovery programme.
Product and operational efficiencies see Betsson post its ‘third successive all-time-high’ quarter, recording corporate Q4 2018 revenues MSEK 1,436.6 (Q4 2017: 1,256.4), running alongside a 56% EBIT increase to MSEK 341.5 (218.4) million.
“I am happy to see how we have been able to show continuous results from the ‘Back on track’ program during the year. A year ago we announced the plan that involved the entire organisation.
Since then, the focus has been on the development of products and technology to continue to deliver the best customer experience. At the same time, there has been a strong determination to improve efficiency in marketing and in internal processes to increase profitability.” Pontus Lindwall Group Chief Executive of Betsson AB details to investors.
The year-end trading statement sees Lindwall and Betsson executives point to a number of corporate improvements, structural refinements combined with strategic investments, which have led the firm’s recovery programme.
Noted directives include Betsson recovering position within its home Nordic markets, improving its product revenue by expanding sportsbook capacities, holding back on M&A expansions and improving end-to-end product outputs.
The year-round improvements see Betsson declare corporate revenues of MSEK 5,419 (FY 2017: 4,716.5), alongside 35% increase in FY2018 EBIT to MSEK 1,193.7 (FY 2017: 882.2)
Closing year-end 2018 accounts, Betsson governance anticipates delivering a net income of MSEK 1,078.1 (FY2017: 786.5), with the Stockholm enterprise increasing its cash flow to MSEK 1,273.3.
Moving forward, Lindwall underlines confidence in Betsson’s long-term growth strategy, stating that the company has undertaken the right management decisions, further supported by a strengthened technical framework.
“During 2018 we have been preparing heavily for the Swedish regulation that came into effect January 1, 2019. Preparations included securing compliance as well as increased marketing activities. To stay on track and execute efficient operations are crucial to absorbing increased costs from betting duties in more markets. The advantage for a large group as Betsson, with long industry experience, several brands and geographical spread that make the operations scaleable, is the financial strength.”
“ Technical requirements had to be delivered within a short timeframe and this was the initial challenge for January 1, 2019. New big players entering into the Swedish online casino market has changed market conditions and we expected to see an impact in this segment. These factors, together with high bonus costs, made a challenging start of the year in Sweden, however, customer activity is in line with our expectations. Long-term we expect the market to grow in a sustainable manner and overall we remain positive about industry growth in regulated markets”