Spiffbet revenue rises 397.4% in 2021 ahead of B2B pivot

Swedish operator Spiffbet has reported revenue of SEK95.4m (£7.4m/€8.9m) in its full year 2021 results, almost five times the revenue recorded in 2020, as it prepares to focus more on B2B services.

This was a rise of 397.4% from SEK18.2m in 2020.

Looking ahead to 2022 Spiffbet noted that it would place greater emphasis on its gaming distribution platform Rhino Gaming, which it acquired in June 2021.

“Spiffbet will adapt its operations to handle changes in regulations concerning European markets, and conduct reviews of its brand portfolio,” the operator said. “Greater focus will be placed on B2B services within the framework of Rhino Gaming.”

Other operating income totaled at SEK2.0m, bringing total revenue to SEK97.4m.

Expenses totalled SEK142.2m, close to triple the expenses from 2020. Direct costs made up SEK89.2m of this, a rise of SEK79.6m year-on-year. Other external costs were SEK23.2m, a 44.1% rise. Depreciation expenses were recorded at SEK16.9m, while staff costs were SEK12.6m. Other expenses came to SEK122,000.

Following expenses, the operating income for the full year came to SEK44.7m. Interest costs at SEK427,000 brought the before tax to SEK45.2m, a further SEK14.5m than the loss of SEK30.6m in full year 2020.

Following a SEK3.3m in tax provisions the total loss for the year came to SEK41.9m, a further SEK14.5m from 2020.

“The beginning of 2021 was focused on growing and building up critical mass in the casino business and in accordance with that we conducted some further acquisitions, wherein Manisol was the largest,” said Henrik Svensson, CEO of Spiffbet. “Mid-2021 was when the first part of the construction of our casino business was completed, and we had thus completely changed pace from gaming development to casino operation.”

“After that our focus shifted to working with the organic development of the business, where we introduced Rhino Gaming.”

Direct costs for the quarter came to SEK22.5m, up by 77%. External costs came to SEK6.5m, down by 15.4%. Depreciation generated SEK4.9m in expenses while staff costs amounted to SEK4.1m. Other operating expenses totaled SEK810,000. This was attributed to Spiffbet’s games development portfolio company STHLM and Rhino Gaming’s operations.

Spiffbet also revealed that revenue for its fourth quarter topped SEK23.4m (£1.8m/€2.1m). This was up 50% compared to the operator’s Q4 2020 revenue, which totaled at SEK16.6m.

Spiffbet contributed this rise to consolidations of the acquisitions that took place throughout the quarter.

After expenses Spiffbet’s operating income totaled at a loss of SEK14.7m, SEK1.1m less than the fourth quarter of 2020.

Other financial items at SEK144,000 brought the loss before tax to SEK14.7m.

After tax and deferred tax income at a combined SEK933,000, the total net loss for the period came to SEK13.8m, SEK1.4m less than Q4 2020.

“The fourth quarter was slightly higher in terms of revenue than the third quarter, despite the fact that the quarter began with the closure of The Netherlands, which increased competitive pressure on existing markets,” said Svensson.

“In terms of results, it was the quarter was affected negatively by the fact that we implemented larger marketing campaigns during the first half of Q4 while competition for customers was high.”

Author: Raymond Fleming