Good growth at Betsson

The Scandinavian-facing online gambling operator Betsson posted imposing fourth quarter and full year results this week that revealed quarterly group revenue had risen 100 percent to SEK137.6 million (US$19.3 million) and profits before tax up to SEK34.8 million.

Group revenues for the full year also showed a commendable increase, rising 93 percent to SEK391.5 million and generating profits before tax for the year at SEK57.6 million, compared with SEK182.2 million in 2005.

Betsson spokesmen said the figure for the previous financial year was affected by "the revaluation of financial instruments that gave a positive effect on net financial items of SEK135 million".

Betsson's online gaming software arm Net Entertainment saw quarterly sales increase 52 percent to SEK31million with operating profits of SEK12.6 million. Net Entertainment's full year sales rose 44 percent to SEK99.8 million with operating profits of SEK408 million.

In bullish frame of mind, the company described prospects for 2007 as promising, with strong trading since the start of the year. It added that it would follow closely events related to the legal status of online gaming throughout the European Union. Turkey was an area of concern following reports that the government in that country was considering legislation which "...if accepted, could deteriorate the conditions for offering gaming services from abroad." Betsson disclosed that some 20 percent of its revenues emanate from the Turkish market.

Such a law could be in conflict with Turkey's agreement to the principles of the European Union regarding free trade and access to services, which it has signed in preparation to joining the EU soon.