SBC News Voice of the Sports Betting Industry
Betsson AB opens 2024 trading by achieving its ‘highest income generating quarter’, ahead of a busy summer of sports for its global brand portfolio across all geographies.
The Stockholm-listed online gambling group trades with confidence as Q1 revenues stand at a peak €248m – up 12% on 2023 comparatives of €221m.
Headline revenues reflect a record customer activity of its brand portfolio servicing 1.28 million customers (+14%) during the period.
Betsson lauds the performance of its online casino segment, generating revenues of €180m, up 19% on 2023 comparatives of €152m, a performance that showcases “Casinos expanded offer with 306 new casino games, 19 of which came with a period of exclusivity for the Group’s brands.”
Despite generating peak wagering volume of €1.69bn, Betsson’s sportsbook results dipped by 3% to €65m (Q12023: €67m), an outcome reflecting negative macro movements in South America.
Period trading reflected Betsson’s diversified commercial make-up as “License revenue for system delivery to B2B-customers amounted to €68m (Q1 2023: €57m) corresponding to 27% (26%) of Group revenues”.
Betsson maintains consecutive growth across all core financial metrics as Q1 EBITDA stands at €72m, up 32% on like-for-like 2023 results of €54m, as corporate performance generates a net income of €43m (Q12023 €36m).
Group CEO Pontus Lindwall commented on the Q1 results: “For Betsson the first quarter of 2024 was characterised by a continued positive development with high customer activity, good growth and strengthened profitability, as well as new growth-oriented initiatives.
“Revenue was up 12 percent year over year, and operating income (EBIT) increased as much as 35 percent to a new record level, while the operating margin strengthened to 23.3 (19.4) percent.”
Providing a breakdown of revenue distribution by region, Betsson achieved a 58% increase in Western Europe income to €43m, attributed to peak casino activity in Italy and improved sportsbook trading in Belgium, offsetting continued declines in Germany.
In the Nordics, revenue decreased by 9.6% to €46.9m, a decline primarily attached to decreased casino wagering in Sweden, while Denmark experienced growth.
CEECA (Central & Eastern Europe and Central Asia) continues to serve as Betsson’s highest revenue generating region, which grew by 18.0% to €110m, driven by strong casino activity, with record revenues in Greece, Croatia, and Latvia.
In Latin America, revenue decreased by 3.3% to €44m, mainly due to a lower sportsbook margin and negative currency effects. Argentina grew year-over-year, but experienced a quarterly decline, while Peru’s revenue decreased due to lower sportsbook activity.
The slight downturn in South America was explained by CEO Lindwall to investors: “After the new president in Argentina took office, a devaluation of the Argentine peso of more than 50 percent was carried out in December, which had a negative effect on reported revenue for the Group in the first quarter. Organically, revenue increased by 25 percent compared to the corresponding quarter of the previous year.”
Q1 trading saw Betsson achieve key operational objectives as In January, Betsson’s Belgian subsidiary, betFIRST, launched a new online casino in Belgium under a category A+ license, enabling a full range of offerings including slot games, table games, and live casino.
The group further enhanced its European portfolio by acquiring Holland Gaming Technology, a licensed operator in the Netherlands, and Holland Power Gaming BV, a game studio, for €28m completed in February, funded by Betsson’s own liquid assets. This acquisition is still pending post-closing approval by the Dutch gambling regulator, KSA.
Strengthening its portfolio, Betsson looks forward to the summer of 2024, as Pontus Lindwall concluded: “After the positive start to the year, we now look forward to following the final rounds of the European football leagues and cups, before it is time for the best national football teams to measure their strengths in the UEFA Euro 2024 and Copa America in June and July.
“There is football fever out there and within the entire organisation a number of activities are already underway to ensure that Betsson will be able to deliver a powerful player offering for new and existing customers during these major championships. See you this summer!”
