Online gambling operator Betsson is planning to raise funds to the tune of SEK500m ($51.4m) for which the company has issued a new senior unsecured bond. The gambling operator said that its raising additional funds to support its expansion plans.
The company has also reportedly asked bookrunners Nordea and Swedbank to facilitate investors meet to explore the possibilities.
“We have the ambition to grow, organically and through acquisitions,” Betsson’s president and chief executive Pontus Lindwall explained. “This should be done in a profitable and sustainable manner, primarily in locally regulated markets and we continuously evaluate additional markets to grow in.”
“With this planned bond issue, we secure financial flexibility to execute our long-term strategy.”Earlier, Betsson reported a 5 percent year-on-year decline in Q2 operating profits to June 30.
The news comes after Betsson in July revealed a 5% year-on-year decline in revenue for the second quarter of 2019, primarily due to struggles in the Nordic region and the Netherlands.
Revenue for the three months to June 30, 2019, fell to SEK1.3bn, while, after financial expenses of SEK14.7m and taxes of SEK10.5m, Betsson’s profit for the quarter stood at SEK171.6m, down 37%.
However, the operator’s performance over the first six months of 2019 made for better reading, with revenue up 2% to SEK2.6bn. Gross profit, after the cost of services, stood at SEK1.8bn, down marginally year-on-year.
In June, the Swedish gambling regulator, Spelinspektionen fined NGG Nordic Ltd., a subsidiary of online gambling group Betsson for violating the country’s gambling regulations.