Adverse currency effects, recent acquisitions and a marketing drive in Spain contributed to a decline in operating income for Betsson in the first quarter of the year.
The Stockholm-listed group increased quarterly revenues to SEK1,210m (£101.7m), up 10 per cent year-on-year, with organic growth of four per cent, but EBIT income declined 12 per cent to SEK211.4m (£17.76m). The organic operating income was SEK 242m (£20.33m), with the operating margin for Q1 2018 at 17.5 per cent, down from 21.9 per cent.
The operating margin for the quarter was 17.5 (21.9) per cent.
Betsson’s CEO Pontus Lindwall warned it will take time for the results of an efficiency drive to show through.
“We follow a detailed plan and took several actions within different areas in the first quarter, aiming at getting Betsson back on track,” he said. “The recent restructuring was made to increase efficiency in Betsson’s operations. We will continue to systematically implement further improvements. However, I want to repeat my message from last quarter that it will take time until we can see any material effects.”
Betsson’s second quarter is under way with revenues slightly lower than the average from 12 months ago. The weaker start is being attributed to a decline in an acquired company and a weaker than average sportsbook margin.
