Betsson hit by lower-than-expected results in first half
Betsson has revealed that it did not meet expectations in the first half of the year, with operating and net income both down year-on-year.
Net income for the six months to June 30 amounted to SEK380.3 million (€40.1 million/44.2 million), down from SEK425.7 million last year, with the company citing unfavourable exchange rate fluctuations as the main reason behind the decline.
Operating income also dropped from SEK451.8 million in the first half of 2015 to SEK408.4 million, with income before tax down from SEK488.7 million to SEK405.3 million.
Betsson also said that earnings per share for the period came in at a reduced rate of SEK2.75 per share, compared to SEK3.08 last year.
However, the company was able to record an increase in revenue, which rose by 13% to SEK1.9 billion.
Betsson revealed a similar set of results for the second quarter, during which revenue climbed but other finances fell.
Revenue in the period rose 9% year-on-year to SEK935.4 million, but net income dropped from SEK201.6 million to SEK146.4 million, which corresponded to SEK1.06 per share.
Operating income in the second quarter was down to SEK158.3 million, while income before tax slipped from SEK212.3 million to SEK156.4 million.
Last month, Betsson issued a warning that results for the second quarter would be lower than it had expected.
Ulrik Bengtsson, chief executive of Betsson, said: “The results in the second quarter did not live up to our expectations.
“Many factors made the quarter challenging; primarily unfavourable currency effects, lower than average sportsbook margins and lower revenue in certain markets, partly due to regulatory changes.
“Betsson’s subsidiaries operate in a dynamic environment, which is highly demanding.
“They have taken several actions in the past months in order to increase growth and thereby profitability.
“The sportsbook offering and functionality have been improved considerably, new exciting products have been launched and our casino has been upgraded.
“These actions will effect future quarters, and we have already in the end of the second quarter seen a strong uplift in active customers.
“The third quarter has started with daily revenue significantly above the average of the second quarter.”
Related article: Betsson estimates lower-than-expected earnings in Q2