Q2 revenue estimates on the rise for the gambling industry

Q2 earnings reports are in publication, and the announcements are great news for the online sports betting industry. Considered one of the most successful sporting event, the FIFA World Cup in Russia, started in July 2018, had a great deal of attraction, thus providing a great boost to online gaming revenues for most companies active in the sector. Accordingly, online gaming revenues are estimated to have increased between 15% to over 20% for leading companies active in the sector for the period, a great signal for the industry, which continues to maintain its margins above market expectations.

Early publications from Betsson AB, a Swedish-based company owning 17 different brands and managing fast-growing online gaming companies, is resounding, as the company announced 2Q revenues of SEK 1.35 billion (USD 148.5 million), an increase of 14% compared to same quarter in 2017, strongly boosted by FIFA World Cup and Western Europe activities. With revenues from casino and sport rising above 15%, Betsson’s Q2 EBIT rose by 45% compared to same quarter one year before, to reach SEK 300.7 million (USD 33 million). The reaction of market participants was not long in coming, as the company share price surged by 19% following the announcement to finally trade along SEK 72 at trade closing.

One thing is sure: as the market potential continues to widen amid sports gambling federal ban removal in the US for instance, profit margins from the industry are not going to erode any time soon. The industry constantly innovates and companies need to evolve accordingly. The gambling industry has still good days ahead.

eGambling Certificate (SQBETQ).