April 27, 2017

Interim report, 1 January-31 March 2017

Continued strong growth in Casino
EBIT amounted to SEK 241 million


The quarter

• Revenue increased by 10.2 percent to SEK 1,102 million. Casino revenue increased by 23.0 percent. 
• Region Nordics grew by 13.5 percent and Region Western Europe grew by 15.6 percent.
• Negative currency impact of SEK 19.1 m on EBIT.
• Share of locally taxed revenues was 20.3 (13.3) percent and betting duties amounted to SEK 43.3 (28.8) million.
• Acquisitions of NetPlay TV in the UK and Premier Casino in Spain were completed during the quarter.     


Key data

Q1 2017  Q1 2016  ∆  Jan-Dec 2016 
Revenue 1,102.0 1,000.1 10% 4,117.3
Gross profit 806.3 745.8 8% 3,078.0
EBIT 240.9 250.1 -4% 946.4
EBIT margin 22% 25% -3% 23%
Net income 214.4 234.0 -8% 878.0
Earnings per share (SEK) 1.55 1.69 -8% 6.34
Operating cash flow 204.9 330.0 -38% 1,168.5
Casino revenue 822.9 669.1 23% 2,907.8
Sportsbook turnover 6,006.1 6,717.7 -11% 24,392.1
Sportsbook revenue 250.3 292.8 -15% 1,080.4
Sportsbook margin after free bets 6.1% 6.1% - 6.5%
Deposits 3,789.2 3,516.6 8% 14,457.6
Active players, 000's 607 538 13% 573


Message from the CEO

"Casino continues to develop well with growth of 23 percent. Total revenue increased by more than 10 percent, compared to the same period previous year, of which most was organic growth. As we indicated before, region Western Europe is back to a healthy growth. The region grew by 15.6 percent compared to the same period previous year.

The combined effect of currency fluctuations had a negative impact on operating income of SEK 19.1 million. In addition, a high proportion of "player-friendly" results in the big football leagues resulted in a lower sportsbook margin than the eight quarter rolling av-erage and thereby lower revenue. The operating income was SEK 240.9 million, corre-sponding to an operating margin of 21.9 percent. 

Some of our fastest growing markets are locally regulated, and local betting duties were SEK 14.5 million more this quarter than for the same period previous year. The share of locally taxed revenues continues to increase and amounted to 20.3 percent, compared to 13.3 percent in the first quarter 2016. Meanwhile, less revenue from countries with higher margin had a negative impact on earnings during the quarter. We expect that margins will go down slightly as our revenue base transforms, but Betsson has well-balanced operations, and can absorb both temporary declines in revenue and increased costs over time. Local regulations create improved growth opportunities. The conver-sion of our revenue base to long-term sustainable and valuable revenues is a positive development and in line with our strategy. 

The region Central and Eastern Europe and Central Asia (CEECA) is still challenging with strong negative currency impacts on both gross revenue in the Sportsbook and on li-cense revenues related to the associate Realm. The planned migration of Europe-Bet to Techsson was completed in March and the operator now has by far the region's best mobile casino offer. Mobile gaming is growing strong in Georgia, but from low levels. 

The acquisitions of NetPlay TV in the UK and a locally licensed operator in Spain were closed March. The latter will be operated under the brand StarCasino going forward.  

The second quarter is normally seasonally weak. The quarter has started with higher revenues than the daily average for the second quarter last year, but lower than the daily average revenue for the first quarter 2017. The underlying activity remains strong."  


Info on presesentation
Betsson invites media, analysts and investors to Betsson's office at Regeringsgatan 28, Stockholm, Sweden, on Thursday, April 27th, 2017 at 09:00 CET. The presentation will also be available via webcast and conference call. CEO and President Ulrik Bengtsson will present the report. The presentation will be held in English and followed by a question and answer session. 

To participate by phone, please dial: 
UK: +44 2033645374
SE: +46 850556474
US: +1 8557532230

To watch the webcast, visit www.betssonab.com or  http://edge.media-server.com/m/p/xshuzfdo


For more information, please contact:
Ulrik Bengtsson, President and CEO
+46 (0) 8 506 403 00  

Fredrik Rüdén, CFO
+46 (0) 8 506 403 00, fredrik.ruden@betssonab.com   

Pia Rosin, VP Corporate Communications 
+46 (0)736 00 85 00, pia.rosin@betssonab.com    


This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 CET on April 27th 2017.

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