Betsson AB trades with confidence as its business continues to achieve record ‘all-time high’ results, whilst its brand portfolio enhances its profile within new markets.
Publishing its Interim H1 2023 results, Betsson achieves ‘another record-breaking quarter’ generating Q2 revenues of €237m up 27% on 2022 comparative results of €186m.
Of significance to the Stockholm-listed firm is the metric that “revenue from locally regulated markets where Betsson pays betting duties increased by 32% to €86m.”
Period trading saw Betsson’s casino unit marked as the group’s standout performer, reporting all-time highs in gross turnover and revenue. The casino unit achieved a record gross turnover increase of 47% to €8,354.4m, as revenue jumped by 35% to €165m.
Peak casino growth was matched by robust sportsbook trading, which achieved Q2 revenue results of €70m, up 13% on 2022 corresponding results of €61.5m.
Further financial highlights saw revenue from B2B products amount to €65m, which reflected an “enhanced product performance” attributed to the acquisition of 80% of the shares in KickerTech Malta Ltd.
All-time-high product performance was underscored by record customer metrics as Q2 deposits surged by 46%, to €1,240m, up from 2022’s results of €845m, despite the number of active customers decreasing by 10.2%, from 1,246,719 to 1,119,803.
The period’s operating expenses totalled €108m, spread across the activities of Betsson acquiring Belgium bookmaker betFIRST, and including €33m reserved for salary revisions, performance-related compensation and costs related to geographic expansion projects.
Q2 gross profits increased by 37% to €163m (Q2/2022: €118m), corresponding to a gross profit margin of 68%. Betsson declared period EBITDA of €67m, up 72% on 2022 comparative results of €39m.
Group CEO, Pontus Lindwall, commented: “I am pleased to look back at another record quarter for Betsson with continued high customer activity and strong financial performance.
“Our 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.”
Betsson continues to underline its strong geographical make-up , in which the Central & Eastern Europe and Central Asia (CEECA) region emerged as the firm ‘outstanding growth driver’, generating a 68% revenue increase to reach €102m, matched by strong sportsbook and casino demand.
The Nordics and Latin America each contributed 22% to the overall revenue, with the Nordics reporting minor growth of 0.9% to €52m, whilst Latin America observed a 12.5% increase to €51m.
Revenue growth in Western Europe rose by 8.8% to €27m, while the Rest of the World (RoW) region reported an 18.9% increase to €4m , with Nigeria’s operations acting as the ‘main growth catalyst’ for the segment.
Entering Q3, Betsson warned that inbound legislative challenges in the markets of Norway, Finland, Sweden, Germany, Belgium, and Estonia are expected to impact group performance.
On a year-to-date basis, Betsson tracks a record-breaking performance as H1 revenue jumped 29% year-on-year, from €356m to €458m.
YTD EBITDA increased by 68% €122m (H12022: €73m), reflecting an enhanced operating margin of 26.6% helping Betsson achieve an H1 operating income (EBIT) result of €97.5m up 85% on 2022 results of €53m.
Underlining Betsson AB’s improved capacity to generate cash in its operations, the group’s operating cash flow doubled from €64m to €137m.
Lindwall concluded: “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 particular, Central and Eastern Europe and Central Asia (CEECA) continued to show high growth.
“We look forward with confidence to the second half of the year, with continued investments into geographic expansion and constant further development of Betsson’s offering to future-proof our competitiveness.”