Online casino gaming and sports betting company Betsson has suffered a revenue fall.
The company announced its quarterly results on Thursday and revealed that their revenue had fallen 11% in the third quarter of 2019. That drop included a 12% decline in casino revenue and a 7% fall in sportsbook revenue, based on a year on year comparison.
The company has cited challenging conditions for the decline, including weak trading conditions in markets in Sweden and the Netherlands. The total revenue for the Group was €120 million in the third quarter, representing a fall of 11%. However, that figure has to be judged against the comparable figure in 2018 that was boosted by the soccer World Cup in that year.
Operating income was recorded at just under €20 million, while their EBIT margin was 16.7%, a drop from last year’s Q3 figure of 23.8%
Group CEO Pontus Lindwall pointed to a number of factors to explain the drop, citing in particular the structural changes affecting the Swedish market:
“We have seen the merger between two major global operators, a development that is in line with what we expect to happen in an industry with many players. We expect this development to continue and also affect the Swedish market to a greater extent than we have seen so far after the Swedish re-regulation.”
Lindwall also pointed to the degree of channelisation in the major European regulated markets, which had become a significant factor in recent months.
But he said that the Betsson Group was in a good position to grow, having secured additional financing up to the value of €230 million. He added that they were still focused on increasing their presence in the Swedish online gaming market.