Betsson Net Income Plummets In Q3 2017
The numbers show a 26% decrease in Net Income to $22m, fueling concerns amongst analysts that there are systemic problems at the company.
Betsson, a Swedish online gambling behemoth that includes more than twenty different properties and brands, reported its Q3 2017 results. The numbers show a 26% decrease in Net Income to $22m, fueling concerns amongst analysts that there are systemic problems at the company.
In a statement released with the report, Betsson CEO Pontus Lindwell acknowledged the decrease and blamed it on the poor performance of NetPlay, which it acquired in April 2017:
“Despite a good finish to the quarter, we are not satisfied with the overall growth in the quarter and Betsson has taken action to improve performance. Moreover, NetPlay, which Betsson acquired in April 2017, has not developed as well as planned and measures have been taken to get the business back on track,” he said.
Product Offerings & Mobile Show Momentum
The company also reported some positive results, including an 11% increase in revenue to 144.3m. It attributed this growth to an increasing number of product offerings, many of which are centered around mobile gaming or event-based activity like popular international sports events. Betsson hopes to continues these trends into the future, attracting more players via its mobile sportsbook.
Betsson has made significant investments in the product offering and we have seen a posi- tive impact in customer activity and mobile casino revenues. The roll-out of the new mobile Sportsbook will continue in the fourth quarter, which should put the company in a favoura- ble position for the football World Cup in 2018,” Lindwell said.
New Operational Focus
In addition to its product offerings, Lindwell stressed Betsson’s new focus on its operational capacity and efficiency during his tenure as causes for optimism.
He hopes to see better organization across the entire company, and will also be exploring how to better leverage marketing techniques to grow its player base and attract new customers.
“I took over as CEO of Betsson AB in September and I can conclude that the product offering has probably never been better, but also acknowledge that there is room for further im- provements in the operations and changes are being made. One example is that marketing is now organised by region in order to better leverage the multi-brand strategy and achieve higher return on marketing investments,” he said.