Betsson boosted by affiliate marketing focus
Published 24th October 2018
Betsson said a heavier focus on affiliate marketing helped it record revenue and earnings figures in Q3.
The betting and gaming operator said group revenue was up by just over 20% to $155m in the three months to the end of September. Operating income was up a huge 57% to $38m.
Betsson attributed its revenue increase to a combination of product improvements and more efficient marketing spend. In the third quarter, it focussed on the re-allocation of marketing investments between different markets, and also “in the mix of traditional marketing and affiliate marketing”. It noted an “increased use” of affiliate marketing.
Marketing spend was fairly flat compared to Q3 2017 at just less than $28m, however the company said “we expect marketing investments to increase as online gaming licences are introduced in Sweden” in January 2019.
A rise in commission to affiliates meant the cost of services provided were at around $46m for the quarter, an increase of 30%. Commission was worth around $13m, which was up by around 40% year-on-year.
CEO Pontus Lindwall (pictured) said: “The improved earnings are a result of the scalability in Betsson’s business, showing that improved products and keeping focus on efficiencies results in higher earnings.”