Betsson reports 7% revenue increase in Q1
Pontus Lindwall CEO of BETSSON AB
The BETSSON AB group has published a press release on its website in which they share a report on their income and most notable events between January and March 2020. On the other hand, its CEO, Pontus Lindwall, makes a detailed analysis of the report and the current situation due to the Coronavirus crisis.
QUARTER JANUARY - MARCH 2020
SIGNIFICANT EVENTS AND OUTLOOK
COMMENTS FROM CEO PONTUS LINDWALL
"We had a strong first quarter in all areas and I look forward to the future with confidence. We reached a milestone in signing our first pure sportsbook customer, we have made a value accretive acquisition and we have launched a new casino product."
"`ibet' is our first pure B2B sportsbook customer with the plan to launch in time for the Euro 2020. Due to the current situation, launch has been postponed until the leagues and tournaments resume. Our intention is to sell our highly competitive sportsbook to external operators and we are seeing strong interest in this.
Betsson has the ambition to grow faster than the market, organically and via acquisitions. This quarter, we acquired an online gambling B2C business which is included in our books from mid-April and is expected to contribute positively to our earnings from day one.
We see strong interest in our products which are being continually optimized to create a compelling choice of entertainment and user experience. One example is the recent launch of ‘Jalla Casino’, a fast, fun and easy to play mobile casino which has received positive feedback from consumers.
The sportsbook has shown healthy growth in the first quarter. Most recently, the positive trend has been broken due to the cancellation of sporting events. However, we now see a shift to sports such as table tennis and eSports, it is an interesting increase in breadth which could be long term positive. We have added further events to our offering and believe that when sporting events gradually re-enter the betting market, our sportsbook offering will be even more powerful than before.
I am impressed with how well the Company has adopted to the current global challenge. We are performing surprisingly well with no major disruption to the business and we see no need to make any changes to our strategy or the way we operate. We will continue investing in our technology and product portfolio and will launch new products and features as planned.
The health and safety of our employees always come first, to ensure that and to contribute to society via social distancing, we are all working from home. There has been a seamless transition to remote working which reflects on the quality and dedication of our hardworking people. I am very proud to see the unique morale, commitment, passion and the way we work as a team at Betsson, which is critical to the successes of the Company.
We are a historic performer with a strong track record of creating shareholder value, we have demonstrated resilience to market fluctuations and delivered in both good times and tough times. We have a well-diversified and secure supplier base, high and stable profit margins and a strong balance sheet.
Looking ahead, when the situation has normalized, I am confident we will come out of this extraordinary situation even stronger, benefiting from our sustainable growth strategy. The offline to online transition is likely to be accelerated globally as a result of the Covid-19 pandemic, creating consolidation opportunities for strong businesses. Our successful strategy continues, I am proud of this quarter's performance and look forward to the future with confidence."
