Despite currency fluctuations and 18% increase in market spending, Unibet believes the surprising profit drop will even out during the 2nd and 3rd quarter.
Driven by unforeseeable currency fluctuations and 18% increase in spending on market, Unibet believes that the surprising profit drop will even out during the second and third quarter. Unibet also believes that they will return their previous-years investments.
The positive marker which promise a future smooth sailing period for Unibet are fast expansion in regulated UK and Australia markets and a growing mobile gambling contribution to the overall revenue.
Unibet’s Expansion To Australia
Acoording to Henrik Tjärnström, CEO of Unibet, company’s market share in Australia is expanding at a higher pace than expected and profit hurdles such as this one are not a setback because Unibet has long-term plans in Australia. Tjärnström added:
“We’re starting at relatively low levels in Australia and we’re growing significantly faster than the market and continue to take market share… It’s already making a positive contribution to the topline but on a gross contribution, after marketing costs, we realize it will take some time to get into positive numbers.”
When compared to Australia, the UK market share has been slightly more volatile, but Unibet will remain persistent with their influence in order to occupy a bigger share.
Unibet’s Mobile Gaming Will Become A Dominant Channel
During the first quarter Unibet’s revenue dropped from AU$150.52 million to AU$149.75 million which is a slight decrease. However, higher advertising costs brought poor after-tax results. Unibet’s profit went down 32%, from AU$30.10 million to AU$19.68 million.
The company’s persistence in the Australian market resulted in a record number of active players and an astounding increase in mobile gaming. During the Q1 of 2015 mobile games industry was almost 48% of Unibet’s revenue, according to their reports. Tjärnström thinks that these numbers only indicate further growth of the company.
In addition to that, Unibet keeps making the right moves at the right time – as soon as the new Apple Watch was out, they offered a Playtech application for it. Expansion of the mobile gaming market started in 2010 and it will definitely pay off.
Unibet had several acquisition attempts earlier this year, but none of them went through. Despite the failed contract seals, Unibet is still expanding their market waiting for the next potential acquisition.