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Betsson AB published its interim report covering the first quarter 2024.
Highlights
- The group revenue increased by 12% to EUR 248,2 (221,9) million. Increase of 25% organically.
- Casino revenue increased 19%. Sportsbook revenue declined by 3%, and the margin for sportsbooks was 6.6% (8%)
- EBITDA reached EUR 71.6 (54,3) million, a 32% increase. EBITDA margin is 28.8% (24.5%).
- Operating income (EBIT), which is the operating profit, increased by 35% to EUR 57.9 (44.0) million. EBIT margin was 23,3% (19.4%).
- The net income was EUR 42,8 (36,6) million or EUR 0.30 (0.28) per share.
- Operating cash flow was EUR 50 (48.8) millions.
- The net debt was EUR -68.1 (104.5) millions.
- The number of active customers has increased by 15%, to 1,281,267 (1.115,641).
Comments from the CEO
“Positive Start to the Year for Betsson: High Customer Activity and the highest Operating Income Ever”
Betsson’s first quarter in 2024 saw a positive trend with increased customer activity, a good growth, and a strengthened profitability. New growth-oriented initiatives were also implemented. Operating income (EBIT), which is a measure of operating profit, increased by up to 35 percent, reaching a record high. The operating margin also improved to 23.3 (19.4)%.
In December, after the new president of Argentina assumed office, a devaluation by more than 50% of the Argentine Peso was implemented. This had a negative impact on the reported revenue of the Group for the first quarter. Organically, revenues increased by 25% compared to last year’s corresponding quarter.
High customer activity led to a strong increase in the gaming turnover, both for casino and sports betting. The increases were 14 percent and 25 percent respectively. Casino revenue increased 19 percent over the past year. The sportsbook margin was 6.6 (8%) percent, lower than the margin average for the last two years. This meant that high turnover and activity in sports betting did not fully reflect in the revenue for the third quarter. Lower sportsbook margins impacted revenues in Latin America.
Betsson’s goal is to achieve stable and long-term earnings growth. To achieve this, the strategy relies on geographical diversification, growth investments in existing markets, new market, B2B, and M&A. In existing markets, the Betsson name was launched on the Italian market at the beginning of March. This coincided with a new collaboration between Betsson and Francesco Totti, the former football superstar in Italy. Italy is still a market that Betsson can grow in. Betsson also went live in Cordoba in Argentina during the third quarter. This means the Group is now offering games under local gaming licences in three Argentine Provinces. In Belgium, the newly acquired company, betFIRST launched a new online gambling service based on a category A+ licence. This license allows a complete online gaming experience including table games, slots and live casino. B2B remains a strategic area that continues to produce results from previous investments. It performed well during the third quarter. In terms of M&A, a gaming operator licensed in the Netherlands that offers casino games via the websites www.goldruncasino.nl and www.goldruncasino.com, and a game studio that develops casino games, were acquired in February. Before the integration can start, the Dutch gambling authority must approve the transaction.
Betsson is committed to sustainability. For the second consecutive year, Betsson has sponsored the Consumer Protection Zone of the ICE gaming show in London. This section of the fair is aimed at increasing awareness about responsible gambling. All proceeds are donated to organizations that promote responsible gambling.
We are looking forward to the end of the European football cups and leagues, and then the UEFA Euro 2024, and Copa America, in June and Juli. Football fever is sweeping the world and Betsson has already begun a series of initiatives to make sure that it can deliver an impressive player offering to both new and existing clients during these major championships. See you in the summer!
