Betsson group’s revenue amounted to €236.8 million (£205.4 million/$265.4 million)
During the three months ending on 30 June, the group’s revenue amounted to €236.8 million (£205.4 million/$265.4 million), marking a significant increase of 27.1% compared to the same period in 2022 when it was €186.3 million. This figure also surpassed the previous record set in Q1 of this year, €221.9 million, by 6.7%.
The operator achieved year-on-year growth in various business segments, with the Casino division being a standout performer in Q2. The revenue from the Casino segment reached an all-time high of €165.1 million, while the turnover peaked at an impressive €8.36 billion.
The Chief Executive, Pontus Lindwall (pictured), highlighted the growth in sports betting, which is expected to be further boosted by the recent acquisition of Belgium’s BetFirst Group for €120.0 million. This acquisition was completed this month. Additionally, Betsson has secured a new deal with Groupe Partouche, granting them access to Belgium’s online casino market. Betsson aims to launch its operations in the country before the end of the year.
CEO Pontus Lindwall emphasized that strategic initiatives such as the BetFirst deal have been instrumental in keeping Betsson competitive and driving consistent growth. He pointed out that Betsson’s successful track record of profitable growth is based on diversified revenues from various products and geographic markets. The business generates robust cash flows, and its strong balance sheet facilitates new growth initiatives.
Lindwall stated, «It is the combination of investments in new markets, both organically and through acquisitions, that has consistently contributed to our strong financial performance over time.»
Casino and sportsbook growth break down
Analyzing the Q1 results, the casino segment contributed to 70% of the total revenue, out of which 84% was generated through mobile platforms.
In the case of sports betting, there was a notable year-on-year increase of 12.7% in revenue, amounting to €58.5 million, and mobile platforms accounted for 85% of this revenue. Moreover, sports betting turnover saw a significant surge of 32.4%, reaching €1.31 billion.
Revenue from other products, such as poker and bingo, also showed growth, rising by 8.9% to €2.3 million.
CEECA key markets for Betsson
Analyzing the Q1 results, the casino segment contributed to 70% of the total revenue, out of which 84% was generated through mobile platforms.
In the case of sports betting, there was a notable year-on-year increase of 12.7% in revenue, amounting to €58.5 million, and mobile platforms accounted for 85% of this revenue. Moreover, sports betting turnover saw a significant surge of 32.4%, reaching €1.31 billion.
Revenue from other products, such as poker and bingo, also showed growth, rising by 8.9% to €2.3 million.
African and LatAm up
In Western Europe, revenue experienced a healthy growth of 8.8%, reaching €27.0 million. Betsson’s presence in Italy contributed significantly to this growth, and the acquisition of BetFirst is expected to drive further revenue increases in the region.
However, the company has decided not to pursue operations in the Netherlands at the moment due to multiple delays in the certification process, leading to the withdrawal of its igaming licence applications.
In the rest of the world, revenue saw a substantial jump of 18.9%, amounting to €4.2 million. This increase was supported by Betsson’s strategic move to increase its stake in the Nigerian-facing Betbonanza, raising it from 25% to 60% in June of the previous year.
Betsson also reported that revenue generated in locally regulated markets accounted for €85.9 million, representing 36.3% of all revenue. This percentage increased from 35.0% in Q1 of the previous year (Q1 2022).
Betsson net profits up 64%
The rise in revenue was accompanied by an increase in expenses. Total operating expenses for the quarter grew by 20.5%, reaching €108.0 million, while the cost of services jumped by 10.1% to €74.3 million.
Among the operating expenses, personnel expenses were the largest, amounting to €33.3 million, closely followed by other external costs at €33.2 million. Marketing costs in Q1 reached €31.9 million, and all other expenses also saw a year-on-year increase.
Despite these expenditures, Betsson achieved an operating profit of €54.5 million, marking a substantial increase of 86.6% compared to the previous year. After accounting for €2.4 million in finance expenses, the pre-tax profit rose by 65.9% to €52.1 million.
The company paid €5.2 million in taxes, resulting in a net profit of €46.9 million for the quarter. This figure represents a remarkable year-on-year growth of 64.0%.
Betsson YOY – 28.7% ahead of €356.4m in the previous year
Taking into account the entire first half of the year, the revenue for the six months ending on 30 June reached €458.7 million, which was a significant increase of 28.7% compared to the previous year’s revenue of €356.4 million.
During H1, the casino segment’s revenue experienced a remarkable surge of 36.0%, totaling €317.1 million. Meanwhile, sportsbook revenue also saw substantial growth, increasing by 15.9% to €136.7 million.
Operating expenses for the first half were 22.8% higher, amounting to €212.5 million. After including €4.5 million in finance costs, the pre-tax profit reached €93.0 million, marking a noteworthy year-on-year increase of 73.2%.
Betsson’s income tax payments for this period amounted to €9.5 million, resulting in a net profit of €83.5 million, showing a considerable growth of 69.0%.
Chief Executive Pontus Lindwall expressed confidence in the company’s prospects for the second half of the year, as they continue to invest in geographic expansion and further develop Betsson’s offerings to maintain competitiveness in the market.
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