Mobile 'crucial' for future growth according to Betsson

Mobile 'crucial' for future growth according to Betsson

Monday, July 25, 2016 Posted by Andy McCarron
Betsson CEO Ulrik Bengtsson is bullish about future performance

The mobile platform is the most crucial factor in industry growth today, according to Scandinavian operator Betsson.

In its recent Q2 report, the operator revealed that over three fifths of the company’s sportsbook gross turnover is coming from the mobile channel with the popularity of the mobile interface increasing across the board over the past year.

Mobile revenue over the past 12 months reached SEK 1.5bn – achieving an increase of 67% in that time – with mobile casino revenue jumping by 80%. For the second quarter of the year mobile revenue was 41% of total revenue, up from 33, although for sportsbook that figure was a huge 61%.

In fact mobile sportsbook revenues increased by 51% over the past year, with no indication of slowing down.

In its Q2 report, the operator explained how important mobile was for future growth. It said: “Betsson expects that the market for online gaming will continue to develop strongly. The number of Internet users is growing rapidly worldwide, which is a driving force for the industry. The most crucial factor today is the growth of mobile solutions and the use of smart phones.

“In regions where the internet is available, the confidence in the internet and e-commerce is increasing as more people use the internet to perform their banking and stock market transactions, insurance business and other purchases. This behaviour and increasing confidence in e-commerce is important for the market development.”

It is for this reason that Betsson offers 593 of its 1,442 casino games on mobile devices, as the more choice offered to players, the greater the chance of higher revenues.

It wasn’t all good news for the quarter though, with a drop in income despite growth in revenues. CEO Ulrik Bengtsson said that the results in the second quarter did not live up to expectations, because of unfavourable currency effects, lower than average sportsbook margins and lower revenues in certain markets.

The new CEO was bullish about the future though: “Betsson’s subsidiaries operate in a dynamic environment which is highly demanding. They have taken several actions in the past months in order to increase growth and thereby profitability. The sportsbook offering and functionality have been improved considerably, new exciting products have been launched and our casino has been upgraded. These actions will have effect in future quarters, and we have already in the end of the second quarter seen a strong uplift in active customers.”

Totally Gaming Says: Betsson’s focus on mobile has helped grow mobile revenues to the extent that it could justifiably be described as a mobile bookmaker. The key for the company is to be able to bring its other products up to speed on the mobile platform though, allowing a more successful cross-sell to customers who prefer the mobile interface.

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