Betsson revenues leap 30% in Q2
Organic growth represents half of rise while acquisitions of Oranje and Kroon Casino account for rest, operator says
Betsson AB group revenues rose by almost a third during the last quarter as the company felt the benefits of recent acquisitions and organic growth within its core verticals.
Revenues for the three months to 30 June totalled SEK752.3m (£64.5m), a rise of 30% on last year’s corresponding total of SEK579.2m, while gross profits also climbed by 30% from SEK482.7m to SEK629.7m (£54m).
According to Betsson, organic growth accounted for 15% “ or half “ of the revenues increase, rising to 16% when taking into account negative FX headwinds.
The remainder was attributed to the additional revenues generated from the March acquisition of Netherlands-facing brands Oranje and Kroon Casino.
During the second quarter, Oranje and Kroon generated revenues of SEK87.8m, up 13% on the same period in 2013, and SEK58.2m in operating income.
Casino enjoyed a strong three months with gross profit from the vertical up 37% to SEK433.6, again boosted by the acquisitions but also an organic growth rate of 13%, and remained the Group’s core with 69% of total gross profit.
Sportsbook, meanwhile, also enjoyed a positive period with turnover boosted by the World Cup from SEK3.4bn in 2013 to SEK4.1bn (£350m) “ a rise of 21%. In total, betting on the World Cup comprised 4% of the Group’s total revenues for the quarter.
However, poker and other products both declined marginally and now represent just 2.9% and 1.8% of gross profits.
Meanwhile, mobile revenues edged up from 15% in Q1 to 17% in Q2, although the company added that 46% of World Cup revenues were derived via mobile devices.
Geographically, Betsson derived 70% of gross profits from the Nordics, down from 81% the previous year, while the B2C/B2B split moved from 74%/26% to 77%/23%.