Betsson hits all-time high operating profit in Q2 2021

Betsson Group has reported all-time high operating profit of an estimated SEK385m (£32.3m). following a 77% year-on-year rise for Q2 2021. Issuing a trading update for the quarter, the Malta-headquartered operator revealed top-end estimated Q2 revenue of SEK1,755m. The firm cited strong sportsbook activity arising from the Copa América and Euro 2020, high sportsbook margin and positive gross margin impact from a favourable product mix as reasons for the spike. Sportsbook turnover rose by 73% year-on-year, with sportsbook margin amounting to 8.5% during the quarter, 1.1% higher than the eight-quarter rolling average margin. “The higher sportbook margin is to a large extent explained by favourable outcomes in the initial phases of the two football tournaments,” Betsson said. Betsson also highlighted the impact of its sponsorship of the CONMEBOL Copa América tournament, concluded in June as having a positive effect on its sportsbook margin. In tandem with the rise in sportsbook turnover, customer numbers rose by 25% during the quarter. Betsson company EBIT received a boost arising from the reversal of a Swedish Gambling Authority (SGA) sanction fee of SEK20m, which was overturned by the Swedish Administrative Court last month. The sanction was first issued by the SGA in June 2020 after an investigation into the use of the Betsson Mastercard and vouchers, offered by Swedish newsagents Pressbyrån and 7-Eleven.