Swedish online gaming operator Betsson Group has warned that second-quarter revenues are likely to be lower than expected, citing “lower sportsbook revenues and unfavourable exchange rate fluctuations.”
The company said in a statement: “Revenues in the second quarter of 2016 are estimated to be between SEK920m and SEK945m (€97.6m to €100.2m), and the operating profit (EBIT) is estimated to be between SEK140m and SEK175m (€14.85m to €18.56m).
“Sportsbook revenues are estimated to be between SEK205m and SEK230m, (€21.75m to €24.4m) compared to SEK206.4m (€21.89m) in Q2 2015. The lower than expected revenue is an effect of lower turnover in multiple markets, as well as losses in a strategic market.
“In addition, Betsson has closed a number of European markets during the past 12 months, as a consequence of a more conservative stance on what markets to accept players from. The restrictions are also an effect of changes in the regulatory landscape and unclear tax regulation.”
The company said that exchange rate fluctuations are estimated to have adversely impacted revenues by around SEK30m (€3.18m).
Betsson will publish its Q2 report on July 21.
