Betsson Convinced that Growth is Coming
by Glenn Baird - April 7, 2020
The Betsson Group has reiterated the message they gave a few months back when they were confident that the future would bring growth for the company.
The initial proclamation came at the start of 2020, following a reduction in growth in 2019 and despite the current Covid 19 crisis, the Swedish betting giants remain confident that they can fulfil their promise.
Nearly three quarters of Betsson’s revenue is made up of online casino transactions, compared to just a quarter of sports betting.
Pontus Lindwall, CEO and president of Betsson stated:
“We remain convinced that, in accordance with our strategy, we will grow more than the market long-term and we have spent the past year preparing for growth.
“During the year we invested among other things in finding new markets, both locally regulated and markets that are to be regulated, and we also see opportunities to grow organically by developing the offering.”
Whilst the majority of Betsson’s custom comes from Scandinavia they have branched out into other areas in Europe, Asia and have most notably prepared themselves for the launch of the Brazilian market by buying up a majority share in an existing betting company.
“In Sweden we have now had just over a year with local gaming licences, something that Betsson has called for over many years. A regulated market is good for consumer protection, while at the same time being intended to enable operators to compete on equal terms.
“However, for a regulated market to function as intended, it requires a high degree of channelisation to protect the companies that are currently paying 18 per cent tax on NGR, a tax that brought almost SEK 4bn into the Swedish treasury during the year. Now the authority needs to take strong action against the companies that distort competition by operating illegal websites or by being allowed to provide products based on an exclusive right.
“I also think that there are too many operators in the Swedish market, and I believe that within five years’ time the gaming industry will look completely different in Sweden. We see the same trends globally, with a shift towards more regulated markets with higher costs, including taxes, consequently.
“We prepared for a situation involving higher costs as early as in 2018, and today we have a cost-effective, scalable structure. We are flexible and quick to adapt to changes in the market dynamic. In 2019, we secured financing for acquisition-based growth by extending a bond; we have a strong cash flow, and we are in a financial position that gives us the capability for acquisitions and other investments when the right opportunities come up.”