Stockholm-listed Betsson Group saw its revenue drop by 10% year-on-year (YoY) in Q4 2019. The operator, headquartered in Malta, pointed to tax changes and other challenges as contributors.
In the three-month period up to 31st December 2019, Group revenues totalled 1.29 billion Swedish Krona (SEK). This was the equivalent of £103 million.
Full-year, sportsbook and online casino revenue down
During this timescale, online casino revenue declined by 10% to SEK 964.1 million (£77 million).
Meanwhile, it was also a gloomy look for sportsbook earnings. This went down by 9%, reaching SEK 311.6m (£24.8m).
Over the course of 2019, Betsson also hit lower figures than had been the case in the previous year. Its full-year group revenues stood at SEK 5,173m (£409.4m). This was a 5% decrease on 2018’s total of SEK 5,419m (£428.7m).
A regional breakdown
In the Nordic region, Betsson’s Q4 2019 revenues plummeted by 32% to SEK 450m (c.£35.6m). Its figures in Western Europe also went down by 15%, hitting SEK 387m (£30.6m).
The group released a Q4 statement, in which it mentioned that local taxed revenues – mainly in Sweden and Italy – had risen by 41%.
Pontus Lindwall, Betsson President & CEO, remained positive despite a tough 2019. He spoke after the revenue figures were released, staying confident that underlying strategies will be successful.
“We are proud to report a 2019 full-year operating profit of SEK 865 million,” Lindwall said.
He continued: “This shows that Betsson has the ability to run a profitable business, even during a year of challenges. Despite a notch in the growth curve, our ambition is to grow more than the market, organically and through acquisitions.”
To deal with various tax changes, Betsson will continue with reviewing its business models. Moreover, the company will evaluate ‘new market opportunities in order to grow revenues and earnings’. Lindwall also shared his thoughts on this, sharing the below.
“During the fourth quarter we made a minor strategic acquisition and continue to analyse several opportunities, both in locally regulated markets and in markets that will be regulated. By further increasing the geographical distribution, we can reduce the impact of temporary downturns in individual markets.”