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Betsson keeps delivering growth

Posted on | February 11, 2010 | No Comments

Today Betsson presented their 2009 FY figures. Initially the stock was butchered with sales around SEK 122 against yesterdays closing price of SEK 129. Although the stock seemingly now have stabilized itself a bit with shallow order depths showing no signs of panic I feel the Market response is incorrect.

Sure Betsson didn’t quite hit the expectations of certain analysts, but they are continouing their strong growth. And this in a healthy way if broken down per product and territory.

Increasing YoY revenues by 25% and the result by 14% WHILST expanding the Nordic business AND seeing their poker revenues plunge quarter after quarter is an achievment!

My concern would be around future yields. The Nordic yields are typically quite strong on an international scale. As Betsson needs to break into new markets one should anticipate yields to come down. Betsson are however reasonably hedged against yields risk by a massive proportion of rev-share customer acquisition and their newly launched B2B business.

How high is online casino revs in the Nordics? I guess we’ll have to wait and see. Contrary to the analysts I found Betssons report quite strong if you expand your horizon beyond the coming quarter.

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