In defiance of the impact of Covid-19, but powered by a canny acquisitions strategy, multi-national gambling group Betsson AB has posted a record net profit of almost one billion Swedish Krona (£86.8m/US$119.6m/€98.9m) for its 2020 financial operations.
Overall revenue for the year, ending December 31, hit SEK6.39bn (£556m/US$770m/€635m), some 23.5 per cent higher than 2019.
Betsson President and Chief Executive Pontus Lindwall credited the take-over of Zecure Gaming Ltd and expansion in the Argentine and Kenya markets as key factors in the Malta-based operator’s success story.
“[We] made several acquisitions, which together with licenses obtained in other countries, entailed expansion with new brands to new markets while we continued to develop products and functions in existing markets,” said Lindwall.
After paying SEK78m (£6.8m/US$9.4m/€7.75m) in tax, Betsson recorded a net profit of SEK990.8m (£86.2m/US$119.4m/€98.5m).
“The transition to digital entertainment has been further accelerated during the pandemic, which has benefited us,” Lindwall explained. “Our long experience and strong financial position mean that we can continue to implement our strategy with a focus on growth — despite current challenges.”
In Q4 2020 Betsson’s revenue was up almost 37 per cent, year-on-year, to SEK1.76bn (£153.2m/US$212m/€175m).
Fourth quarter mobile revenue, alone, totalled SEK1.39bn (£121m/US$167.6m/€138m) – almost 80 per cent of Q4’s total revenue.
Casino revenue in Q4 grew by over 33 per cent to SEK1.28bn (£111.4m/US$154.3m/€127.2m); mobile casino revenue hit SEK1.02bn (£88.8m/US$123m/€101.3m), up over 56 per cent, and the Sportsbook handle was also up by over 47 per cent to SEK459m (£39.9m/US$55.31m/€45.6m), with more than three-quarters of income generated by mobile gaming.
In keeping with its Scandinavian DNA, most of Betsson’s revenue was generated in its Nordic markets, followed by Middle Europe and Central Asia, then Western Europe, with rest-of-the-world ops topping up the 2020 cash flow.
“We ended 2020 with yet another strong quarter,” affirmed Lindwall.
“Under the extraordinary circumstances that still prevail, online gaming continues to demonstrate its resilience to market fluctuations and Betsson demonstrates good profitability.”