SBC News Voice of the Sports Betting Industry
Betsson AB boasts stellar interim trading, achieving record results matched against peak comparatives.
Publishing its H1 2024 accounts, the Stockholm-listed online gambling group achieved ‘record high’ group revenues of €520m, up 13% on interim 2023 results of €459m.
Peak revenue reflects Betsson achieving consecutive ‘record high’ Q2 revenues of €272m, up 15% on corresponding 2023 income of €237m.
Matched against peak comparatives, Q2 trading saw Betsson achieve online casino revenues of €191m (+16%) and sportsbook revenues of €79m (+13%).
Period trading saw Betsson register all-time-high customer metrics across its brand portfolio as customer deposits hit the €1.5bn mark (+15%). The KPI reflects Betsson servicing a registered customer base of 31 million combined with active players of 1.4 million (+25%) playing across its brand portfolio during the H1 period.
Underlying growth saw Betsson’s Q2 EBITDA stand at €78m, up 15% on 2023 comparatives of €68m, maintained on an EBITDA margin of 28.6%. Period operating income increased to peak results of €64m, up 18% on 2022 results of €54m.
Group CEO Pontus Lindwall commented: “The second quarter of 2024 meant continued high growth and strengthened profitability with new records in both revenue and operating income for Betsson.
“The high customer activity continued throughout the quarter – as expected, the UEFA EURO and Copa America contributed positively in June – resulting in strong key figures across the board.”
A breakdown of market performance sees Betsson continue to achieve peak trading results in its Central & Eastern Europe and Central Asia (CEECA) business, generating Q2 revenues of €114m – results generated via a split 75% casino and 25% sports betting.
Betsson reflected on the strong CEECA activity: “The growth was mainly driven by increased underlying activity in both casino and sportsbook. Croatia, Lithuania, and Estonia reported all-time high revenue in the second quarter, mainly driven by the casino product.”
All-time high trading was achieved by the firm’s Latin American business, generating revenues of €62m (+21%) as unit results reflected a near-doubling in online casino revenues to €36m.
H1 trading was noted as a transformative period for its Latin American business as its Peru subsidiary, Inkabet, migrated to a new online platform, enhancing overall market performance.
As noted by Lindwall: “For several years, Betsson has established itself as the most well-known brand for sports betting in Peru. In June, the Group received its first local licences for the newly regulated market in the country, for the Betsson and Betsafe brands, and in July, licences for the Inkabet brand were also obtained.”
In Europe, Western brands achieved a 62% increase in revenues to €43m, as performance reflected all-time high gains in Italy generated by StarCasino.
Corporate performance continues to lag in the Nordics, where Betsson registered an 8% decrease in income to €47m, reflecting continued adjustments in Sweden, impacting the customer activity of its casino segment.
Consolidated accounts saw H1 group costs stand at €179m (+21%), primarily attributed to higher gaming taxes and elevated costs for affiliate and partner commissions totalling €33m during Q2 trading.
Closing H1 accounts, Betsson’s EBITDA stands at €149m, with earnings achieved on a rising margin of 28.7%, as group operating income stands at €87m, up 4% on 2023 results of €83m.
CEO Lindwall concluded: “I am particularly delighted to note the improved operating margin in the quarter and the highest ever operating income, given the increased proportion of revenue that was subject to local gaming taxes.
“The share of revenue from locally regulated markets amounted to 55% (36%) and includes Peru for the first time, where local gaming tax was accrued during the entire second quarter.
“I am pleased with what we have delivered so far this year and see good growth opportunities in the second half of the year as well. We continue to invest in geographic expansion and the product offering to enable continued profitable growth and value creation for a long time to come.”
