“It was our fastest analyst presentation ever,” Betsson CEO Pontus Lindwall jokes. Done and dusted in under 19 minutes and just two analyst questions following the release of the operator’s Q3 report, which showed a 6% year-on-year (YoY) jump in revenue to €295.8m (£257.9m).

The breakneck speed of the call reflects the positive hum around Betsson, which has been ongoing for several quarters. The firm’s shares spiked on the news, undoubtedly helped by the announcement of a €40m share buyback scheme about to get underway. The company’s stock is up 10% over the past 12 months.

Records in online casino and gains in Italy and Latam were highlights in the reporting period. However, Lindwall remains cautious of regulatory headwinds in key markets, which he hopes will soon abate.

EGR: A positive report which led to a coinciding spike in share price – how are you feeling?

Pontus Lindwall (PL): It is a good report, with continued strong development. It’s our third-highest revenue and profit. So, it is all good.

EGR: Does it get boring only reporting good things?

PL: No, but I think about it sometimes because there are always ups and downs. In every single quarter there are a few markets that are performing less well than we hope or expect, and a few that perform better.

Luckily for us, we have plenty of markets so, in general, we managed to cover up any shortfalls. Sometimes I feel like we are football team, and we are winning each game. But no matter how good you are, you’re going to lose a game someday. But now, we feel strong.

EGR: There was all-time high revenue for casino during the reporting period. What was working there during Q3?

PL: I got asked the question in the analyst call about marketing more towards sports betting rather than casino. But obviously what we do is build the brand. We are showing the world we are a large gaming company and associating ourselves with brands like Boca Juniors and Inter Milan. That lifts the whole brand, and trust in the brand. That goes just as much for casino as it does for sports betting.

EGR: On sports betting, turnover was down 18.7% against Euro 2024 and the Copa América last year, but revenue was up. Is that a positive overall?

PL: It’s good and that’s how it should be. The comparison was tough. We have an attractive sportsbook offering and the pricing is a part of that. Sometimes people cheer for us when we have a very high sportsbook margin, and I have to say it was not on by purpose. We try to deliver a good product, and sometimes it goes up and sometimes it goes down. You need to be able to appreciate when the sportsbook margin is lower, too.

EGR: How hard is to retain those customers who come onboard for big tournaments like Euro 2024?

PL: It is a bit harder with part of the customer base. Some of them that come in for those tournaments are real leisure players who don’t use our services continuously, so those players are a little harder to keep.

In general, like last year, we brought in some customers [in Q3], we then had really good traction in the fourth quarter. That is some of the spillover of those we brought in in the third quarter. Those big tournaments are important for us to get new customers. Now we are looking forward to the World Cup next year. It’s going to be amazing to see what that will look like.

EGR: In Colombia, the 19% VAT on deposits has remained in place. Is this having a significant impact?

PL: Colombia is not one of our largest markets, but I will answer on a more general note. That kind of tax is a disaster for any gaming market. It’s always what we say about the regulated markets – they need to be competitive in order to be sustainable. Otherwise, they will shrink and be on a negative spiral. We can see that from some major markets in Europe right now. I the hope the regulatory winds will change direction a bit.

EGR: Do you think the industry has done a good enough job in lobbying governments and lawmakers around tax?

PL: The UK is a good example. I think a lot of work has been done in the UK and elsewhere on that topic. You can say that if you look at the outcome, we haven’t succeeded as an industry. If you look at the efforts, I think we have put a lot of effort in, but we haven’t succeeded.

EGR: Do you think that’s because of the idea from politicians that the gambling industry is an easier sector to tax?

PL: That’s one thing. But what we see from regulators is they tend to look at the regulated part of the industry and say, ‘we want to protect those players’, and so impose certain restrictions on the advertising and restrictions on the product. But then they don’t look at the non-regulated [sector], which of course grows.

That’s the part where some players may end up in big trouble. So, it’s a very short-sighted when politicians put in all those restrictions.

EGR: Finally, why is now the right time to initiate the share buyback?

PL: This is something we have discussed. We’ve had the question about share buybacks for 10 years because we have quite a strong financial position. We’ve had that tool in our toolbox for many years, and now, obviously, we have a record high with the net cash position.

The board made the decision that this could be a wise thing to do right now. By acquiring shares, we will, over time, have higher earnings per share We’ve got some positive reactions on it already.

The post Q&A: Betsson CEO on why tax hikes are a “short-sighted” strategy first appeared on EGR Intel.