The online gambling platform provider Betsson AB in the Nordic countries in the European Union finished off 2017 with rather dismal news. The company had earned far less than they were meant to and to make it even more sour, the news was broken that the financial situation of the company is not meant to look up until the end of 2018. This past Thursday the figures were released for Bettson which declare that although the total revenue increased by 12%, the total profit and operating income for the Stockholm-based company has fallen significantly. Both the profit and the operating income for the company dropped down by a total of 18%, which has negatively affected their business in significant ways. The question on many investors, employees, players, and readers such as our minds, is how much worse can the economic strait of this company become?
The 18% drop in both operating income and total profit, as well as 12% increase in the total amount of revenue realized was recorded in the last three months of 2017; however, the Nordic company has achieved similar results for the whole of 2017. For the most part of the year revenue was positive, however, the operating income and profit for the business was mostly negative and did not lend much hope to the situation.
Betsson’s Reasons for Performing Poorly
The reasons for these dire straits are fairly straightforward according to the company, these include the falling value of the currency, the high costs that the company incurred when acquiring new companies and the fact that the acquired businesses did not perform as originally envisioned. However, the feelings of those listening to these reasons are anything but sympathetic, it seems that these excuses have outworn their charm.
The CEO of Betsson Pontus Lindwall who became the temporary CEO as of September 2017 had undertaken quite a few projects in order to improve its standing. A couple of these include a complete new frontend for the casino, as well as sports betting offerings, and engaged in a far less bureaucratic style of business by letting go of the weakest links in the structure.
Betsson is planning on reducing the amount of money invested in the UK market and instead focuses its energy on expansion within the European content. Betsson is hoping to become far more focused on its NetPlayTVBusiness within the coming year as things start to go better as this will be one of its main methods of securing higher revenue for the coming year.