Betsson reports ‘strong sportsbook contribution’ during Q2 2021

Betsson AB cites that strong sportsbook performance driven by two major continental football tournaments, has helped the Stockholm-listed online gambling group overcome Norwegian and Swedish regulatory headwinds.

Publishing a Q2 trading update, Betsson registered a significant increase in its sportsbook trading margin to 8.5%, indexing  above its eight-quarter rolling average margin of 7.4%.

Sportsbook growth was attributed largely to the ‘favourable outcomes in the initial phases’ of the UEFA 2020 European Championship and the CONMEBOL Copa America – the latter of which Betsson serves as an official sponsor of, significantly boosting its marketing and brand visibility to Latin American bettors.

The firm stated: “Based on the Betsson business model and its proprietary sportsbook Betsson has been able to reap on these events.”

As a result of the strong sportsbook activity, high sportsbook margin and a ‘favourable product mix’, Betsson group revenue is expected to amount to SEK 1,735-1,755 million, whilst the firm has also delivered ‘its strongest quarter ever in terms of EBIT’.

Betsson predicts that EBIT ‘will be at an all-time high level’ in the range of SEK 375-385 million (Q2 2020: SEK 217.7 million), a growth rate of 72-77% year-on-year and 36-39% quarter-on-quarter.

Additionally, a decision by the Swedish Administrative Court in June to reverse a sanction fee of SEK 20 million issued by the Swedish Gambling Authority has also positively impacted group EBIT.

Furthermore, the group’s EBIT was also positively impacted by the decision of the Swedish Administrative Court to overrule a fine of SEK 20 million imposed on the firm by the Swedish Gambling Authority regarding unauthorised bonuses.

Although recording success in the second quarter, Betsson continues to face some regulatory hurdles, as Sweden’s overhaul of its gambling industry oversight is temporarily placed on hold due to the dissolution of the government, and Norway’s Lottstift has ordered the firm to stop targeting consumers in the country.

Success in the second quarter, however, builds on Betsson’s positive Q1 trading results, which also saw the operator offset difficult regulatory conditions in Germany and Norway to maintain strong geographical growth, with the Baltics, Italy and Croatia highlighted in particular.

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