Betsson revenue jumps 27% as geographic spread fuels record quarter

Betsson has recorded a 27% year-on-year (YoY) increase in group revenue in another record quarter for the group.

The Stockholm-listed firm posted Q2 revenue of €236.8m (£205.5m), up from the €186.3m recorded in Q2 2022, with the operator pointing to high customer activity and sustained growth in Central and Eastern Europe and Central Asia (CEECA).

Betsson noted a significant increase in casino revenue, up 35% YoY to €165.1m, with the vertical accounting for 70% of total group revenue. Casino gross turnover also hit record levels of €8.4bn, up 47.4%.

Sports betting turnover jumped 32.4% YoY from €61.6m to €69.5m, with sports betting revenue climbing 13% and margin down slightly from 8.3% to 8.2%.

The group’s revenue from its smaller verticals, including poker and bingo, fell by 8.9% to €2.3m.

Additionally, revenue from B2B operations increased from €31.4m to €65m.

Breaking operations down by region, CEECA continued to be a shining light for the group with revenue up 68% to €102m.

Betsson noted strong activity, driven by its casino arm, in Croatia, Georgia and Greece, with the region once again returning record revenue.

Elsewhere, Latam revenue rose 12.5% to €51.4m, with growth in Argentina and Colombia referenced, but a slight dip in Peru due to a lower sportsbook margin.

Betsson also revealed it had increased its stake in Colombia-licensed Colbet from 91% to 98%.

Elsewhere, revenue from the rest of the world segment rose 18.9% to €4.2m, compared with modest growth of 8.8% YoY to €27m in Western Europe.

Betsson noted growth in Italy, driven by its casino arm, but there were downturns in Germany due to ongoing regulatory headwinds in the market.

In its Nordic heartlands, revenue remained flat at €51.7m despite all-time revenue in Denmark as revenue in Sweden and Norway decreased.

At a group level, EBITDA surged 72% to €67.6m with a corresponding margin of 28.5%. EBIT also soared during the reporting period, up 87% to €54.5m.

Once again, despite the record financial performance, there was a 10.2% decrease in active customers during the quarter, following the trend from Q1.

Actives were 1,119,803, compared to 1,246,719 the same period last year, yet customer deposits leapt 46.7% to €1.2bn and the number of registered customers increased 12.6% to 28.1 million.

In terms of strategy, Betsson revealed it had withdrawn its licence application in the Netherlands during Q2. The company has been out of the regulated Dutch market since October 2021.

The group blamed “significant delays in the licensing process and resource allocation consideration” but noted it maintains the possibility of reapplying for a licence in the future.

Elsewhere, the operator provided a trading update for its initial Q3 performance up to and including 16 July, with average daily revenue 20.2% higher than the average daily revenue for the entire Q3 2022.

Speaking on the group’s performance, CEO Pontus Lindwall hailed the geographic spread and pointed to the potential growth to be borne out of its acquisition of Belgian operator betFIRST.

Lindwall said: “Betsson’s long history of profitable growth is based on diversified revenues, both in terms of products and geographic markets. As before, the business generates strong cash flows, and the robust balance sheet constantly facilitates new growth initiatives.

“It is the mix of investments in new markets, organically and via acquisitions, that has contributed to the good financial performance over time. The geographical diversification continues to serve Betsson well and revenues increased in all regions during the quarter.

“In June, the leading Belgian sports betting operator betFIRST was acquired and at the same time a new strategic partnership was entered into with the publicly listed French casino operator Groupe Partouche to offer online casino games in some regulated markets, with Belgium being the first country for this collaboration.

“These strategic initiatives together enable a competitive offering in sports betting and casino for the Belgian market. The investment in Belgium resonates well with Betsson’s ambition to deliver long-term profitable growth,” the Betsson AB CEO concluded.