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Betsson reported record revenue for the second consecutive quarter during Q2, with casino revenue also reaching an all-time high.
Group revenue for the three months to 30 June was €236.8m (£205.4m/$265.4m), up 27.1% from €186.3m in Q2 of 2022. This figure also surpassed the previous record of €221.9m set in Q1 this year by 6.7%.
The operator experienced year-on-year growth within a number of its business segments. Casino was a highlight in Q2, with revenue reaching a record €165.1m while turnover hit an all-time high of €8.36bn.
Chief executive Pontus Lindwall (pictured) also spoke of sports betting growth, which will be driven further by the acquisition of Belgium’s BetFirst Group. The operator agreed to acquire the business for €120.0m last month.
The BetFirst acquisition, which completed this month, will be complemented by a new deal with Groupe Partouche. This will grant Betsson access to Belgium’s online casino market. Betsson aims to go live in the country before the end of the year.
Strategic initiatives such as the BetFirst deal keep Betsson competitive and underpin the operator’s consistent growth, CEO Pontus Lindwall said.
“Betsson’s long history of profitable growth is based on diversified revenues, both in terms of products and geographic markets,” he said of the quarter. “As before, the 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.”
Casino and sportsbook growth
Breaking down the results for Q1, casino accounted for 70% of all revenue, with mobile making up 84% of revenue from the vertical.
As for sports betting, revenue was 12.7% higher year-on-year at €58.5m, with mobile’s share at 85%. Sports betting turnover also increased 32.4% to €1.31bn.
Revenue from its other products including poker and bingo climbed 8.9% to €2.3m.
CEECA key for Betsson
Looking at revenue in terms of geographical performance, Central and Eastern Europe and Central Asia (CEECA) led the way with €102.6m. This was up 68.0% and a new record for the region, with revenue from Croatia and Greece reaching all-time highs.
Elsewhere, Nordics revenue hit €51.7m, up 0.9% year-on-year mainly due to casino growth. Latin America revenue totalled €51.4, a rise of 12.5% helped by increases in Argentina and Colombia.
African and LatAm contributions rise
Western Europe revenue climbed 8.8% to €27.0m, with Betsson continuing to see growth in Italy. It noted that the acquisition of BetFirst will drive further revenue increases across the region. However, there will be no return to the Netherlands, for the time being after the business withdrew its igaming licence applications following multiple delays to the certification process.
In terms of rest of world revenue jumped by 18.9% to €4.2m. This was helped by Betsson increasing its stake in Nigerian-facing Betbonanza from 25% to 60% in June last year.
Betsson also said that revenue generated in locally regulated markets amounted to €85.9m, or 36.3% of all revenue. This was up from a 35.0% share in Q1 2022.
Net profits up 64%
The increase in revenue was accompanied by a rise in outgoings. Total operating expenses for the quarter were 20.5% higher at €108.0m, while cost of services jumped 10.1% to €74.3m.
Betsson’s largest operating outgoing was personnel expenses at €33.3m, marginally ahead of other external costs at €33.2m. Marketing costs in Q1 amounted to €31.9m, while all other expenses were up year-on-year.
This spending left an operating profit of €54.5m, an increase of 86.6% on the previous year. After accounting for €2.4m in finance expenses, pre-tax profit was 65.9% higher at €52.1m.
Betsson paid €5.2m in tax, leaving a €46.9m net profit for the quarter, up by 64.0% year-on-year.
H1 growth at Betsson
Looking at the first half as a whole, revenue during the six months to 30 June amounted to €458.7m. This was 28.7% ahead of €356.4m in the previous year.
Casino revenue in H1 jumped 36.0% to €317.1m, while sportsbook revenue hiked 15.9% to €136.7m.
Operating expenses were 22.8% higher at €212.5m. After also including €4.5m in finance costs, pre-tax profit was €93.0m, up 73.2% year-on-year.
Betsson reported €9.5m in income tax payments, leaving €83.5m in net profit, an increase of 69.0%.
“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,” Lindwall said.
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