Betsson AB has reported a ‘record strong start to 2023 trading’, as the Stockholm-listed gambling group celebrates its 60th year in business.
Publishing its Q1 trading update, Betsson lauds bumper financial results as group revenues increased by 30% to €222m compared to Q1 2022 results of €170m.
Headline growth accounted for a 37% increase in casino revenues to €152 and a 19% increase in sports betting revenue to €67m, with sportsbook maintained at a margin of 8%.
Strong KPIs saw a surge in customer deposits to €1.14bn (Q12022: €782m) recorded across all operating subsidiaries, a record achieved despite an 11% drop in active customers during the quarter to 1,115,641 from 1,256,449.
Group EBITDA rose by 62% to €54.3m, with a margin of 24.5%. Operating income (EBIT) increased by 82.2% to €43m, boasting a 19.4% margin.
A market-by-market breakdown of Betsson’s performance revealed mixed results across its global portfolio. Revenue in the Nordics declined by 4% to €52m due to decreased revenue in Sweden and Norway, offset by growth in Finland and Denmark.
In Western Europe, unit revenues increased by 22.4% to €27.2m, with peak performance in Italy countering continued declines in Germany due to market restrictions.
Central & Eastern Europe and Central Asia (CEECA) revenue surged by 75.1% to €93.5m, driven by strong underlying activity in both casino and sports betting, as well as record highs in Croatia and Greece.
In Latin America, revenue grew by 23.1% to €45.2m, with growth across all countries despite seasonal effects and political turbulence. Betsson was also granted an online gaming license in the province of Cordoba, Argentina.
Rest of the World (ROW) revenue increased by 13.2% to €4.2m, mainly due to the consolidated revenue from Nigeria after Betsson increased its ownership in Nigerian gaming operator Betbonanza from 25% to 60%.
Closing its Q1 accounts, Betsson net income stood at €36.6m or €0.28 per share. Operating cash flow reached €48.8m, and net debt declined to €104.5m,.
Group CEO Pontus Lindwall underlined that the group’s strong opening-to-year trading reflected Betsson’s adaptability in a dynamic and competitive market, in which the group will increase investment to accelerate expansion within new markets with continued focus on proprietary technology developments.
“Betsson started 2023 with yet another strong quarter, again delivering record numbers for revenue and EBIT, even though the first quarter has historically often had less activity than other quarters.” Lindwall cited
The year has started well for Betsson with continued profitable growth and strong cash flows.
We can look ahead to the rest of the year with a solid financial position that enables continued investments in sustainable growth and value creation for our shareholders.”