For the first quarter of 2021, Spiffbet increased its net gaming revenue year-on-year by almost 60%.
According to Spiffbet CEO, Henrik Svensson, this growth is due to overcoming technical challenges and the organization’s marketing investment.
Svensson said: “We have managed to solve several technical challenges and we are starting to see the effect of our investments in marketing. We also benefited from marketing boosts in some brands, even though we are not sure whether this increase is permanent.”
He also adds that the results were “positively affected” since pay-outs to players were lower than average for Q1 2021, whereas the year before player profits were above average.
Regarding game development, revenue for the company’s B2B segment didn’t experience much of a change; the Spiffbet CEO said this area of the business is understaffed and underfunded.
“This is an active decision as we want to create a stable product before we gear up. We are also looking at developing our offering in a broader direction within B2B with a game server and perhaps other services. I want to stress that the main focus right now is to develop this area internally, with resources from game development and our online gaming business,” Svensson added.
While growing revenue during the first quarter, Spiffbet also managed to cut its losses. The company’s losses was less than half of 2020’s first-quarter result, and Svensson said: “I think we have delivered according to plan even if we clear out the tailwind we have had in Q1.”
During the quarter, Spiffbet acquired casinos Sir Jackpot and LiveLounge but the largest acquisition was that of Malta-based Manisol. Svensson says that the firm is only looking to acquire new businesses that “add profitability and strategic components”.
Svensson concluded: “The focus now is to create a better base for the online gaming business to increase profitability and continue to grow.”