Unibet revenue growth dented by FX headwinds
EBITDA in Q3 hit by currency exchange rates but operator encouraged by underlying revenue growth
Unibet posted a new all-time high in gross winnings revenue for a single quarter in Q3 of £86.1m, up 7% year-on-year despite a negative FX hit.
The firm said underlying organic revenue growth in constant currency for the three months ended 30 September was up more than 21% but EBITDA was down 20% to £17.4m, primarily due to the impact of negative exchange rates.
On sportsbook, a lower sports betting margin, which fell from 9.2% to 7.7%, meant revenues climbed a modest 4.4% to £39.8m despite a 24% increase in turnover.
Following a resurgence in Q2, poker gross winnings revenues were down 35% to £1.2m but casino enjoyed a 15% revenue increase to £42.3m and is now the operator’s main revenue contributor.
The firm also said it added 28,644 customers during the quarter, with the total number of actives up 17.2% to 671,635.
It was a busy quarter for Unibet, which finalised the acquisitions of Stan James and iGame Group during the quarter, although these acquisitions will not contribute to a full quarter’s results until Q4.
“The combination of our continuing organic growth and these strategic acquisitions give the Unibet Group a strong platform for accelerated development in future quarters,” Henrik Tjärnström, Unibet CEO, said.
“The acquisitions also bring new expertise into our teams, with opportunities for future synergies and increasing our share of revenues from locally regulated markets,” he added.
Unibet’s share price was up almost 7% to SEK770 after early morning trading.