The Betsson Group recently released its second quarter results for 2020 has reported a 20% year-on-year increase to SEK 1.53bn ($170.8m). The growth was attributed to the Swedish companies casino operations, which saw a 40% increase over the same time from last year.
However, Betsson also revealed its sportsbook revenue declined as a result of the current COVID-19 pandemic by 34%. This was mainly the result of most sporting events being cancelled. Yet, with the decline, its operating income was up 11% to SEK 217.7m. However, its while operating cash flow was reduced to SEK 343.9m.
This was partly the result in Betsson acquiring the B2C vertical of the Gaming Innovation Group. The deal, which was entered into in February of this year was worth a €31m ($33.6m). The Swedish company, as part of the deal, agreed to use the GIG platform to maintain its B2C brands for no less than 30 months and pay a platform fee during that time.
In addition to the GIG acquisition, Betsson entered the U.S. sports betting market after it signed an agreement with Colorado based Dostal Alley Casino. It includes plans to open its own sportsbook early in 2021.
Speaking about the second quarter results, CEO and president of Betsson AB, Pontus Lindwall said; “The immediate outlook is naturally uncertain, however Betsson is in good shape and we are in it for the long term. Our proprietary technology is a strategic advantage, our diversification in markets, verticals and brands makes us resilient to market fluctuations, and our financials are rock solid.”
Kambi impacted by global pandemic
In other iGaming news, sportsbook operator Kambi has reported a decline in revenue of 32%. It’s CEO, Kristian Nylén called the last two months some of the toughest after its operating profit fell 31% to €3.5m with post-tax results resulting in a €3m loss. In comparison, its profit post-tax for the same period last year was $1.6m.
In addition, its cash flow from investment and operating activities saw an additional loss of €2.8m. Despite its decreased revenue, the company insists the resumption of sports has allowed Kambi to successful weather the impact of COVID-19’s. The company further states that its partners in sports betting have seen increases monthly beginning in June.
Speaking about the challenges the company faced, Kristian Nylén stated; “Although challenges remain, and an element of uncertainty persists, the past few months have proven Kambi can overcome the toughest of tests and emerge the other side stronger for it. With sports gradually returning and our ambitious partners keen to catch up on lost time, we’re ready for an exciting second half of the year.”