Betsson highlighted the second quarter of 2024 as its “best quarter ever” with new record figures across its casino and sportsbook operations.
The operator’s casino revenue rose by just under 16 per cent in comparison to the same period last year, which was also a new all-time high for the group.
CEO Pontus Lindwall also noted that football competitions UEFA Euro and Copa America helped to drive “strong key figures” across the board, adding that there would be growth opportunities in the second half of the year as well.
All-time casino revenue high
Publishing its Q2 financials, Betsson declared a group revenue of €271.5m, a 14.6 per cent increase year-over-year (Q2 2023: €236.8m) and an organic growth of 38.1 per cent YoY, driven by B2C operations.
The operator stated that licence revenue for system delivery to B2B customers amounted to €70.6m (2023: €65m) a 26 per cent share of the group’s total revenue (2023: 27 per cent).
Customer activity grew during the quarter, with deposits increasing by 15 per cent YoY to an all-time high of €1.43bn (2023: €1.24bn). Active customers rose by 25.4 per cent YoY to 1.4 million (2023: 1.1 million), while the number of registered customers at the end of the quarter stood at 31.2 million, up 11 per cent YoY (2023: 28.1 million).
In addition, Betsson noted that 88.6 percent of its active customers have activated tools for responsible gaming (2023: 89.3 per cent), while 16,992 customers have been analysed manually by the operator during the quarter for potentially risky gaming (2023: 14,967).
Split per product, casino had the biggest share by product with a 70 per cent share of the total group revenue, followed by sportsbook with 29 per cent and other with one per cent.
Casino revenue came in at €191.1m, a 15.8 percent YoY improvement (2023: €165.1m) and an all-time high for the group. Gross turnover for the vertical increased by 7.3 per cent YoY to €8.97bn (2023: €8.35bn).
Sportsbook operations produced revenues of €78.4m, up 12.8 per cent YoY (2023: €69.5m) and another all-time high for the group, with a margin of 8.6 per cent (2023: 8.2 percent).
Gross turnover for the vertical increased by 16.9 per cent YoY to €1.53bn (2023: €1.31bn), which Betsson stated benefited from the UEFA Euro and Copa America football tournaments taking place at the end of the quarter.
Other products – poker, bingo and other – revenue dropped slightly YoY to €2m (2023: €2.3m).
Betsson’s EBITDA during the quarter rose by 15 per cent YoY to €77.6m (2023: €67.6m) with a margin of 28.6 per cent (2023: 28.5 per cent). Operating income increased by 18 per cent YoY to €64.1m (2023: €54.5m), its tenth consecutive quarter of increasing operating income, with a margin of 23.6 per cent (2023: 23 per cent).
The operator’s net income fell by five per cent YoY to €44.4m (2023: €46.9m) while operating cash flow dropped by 15 per cent YoY to €75.8m (2023: €89.2m). Net debt was €93.1m (2023: €138.8m).
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.
“Revenue increased by 15 per cent and operating income increased by 18 per cent, while the operating margin strengthened to 23.6 (23.0) per cent. This was our tenth consecutive quarter with increasing operating income. Organic revenue growth was 38 per cent, primarily driven by the B2C operations.
“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.”
Lindwall continued: “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.”
Regional performance
Revenue per region, Betsson reported that Central & Eastern Europe and Central Asia led the way with 42 per cent and €114m (2023: €102.6m), followed by Latin America with 23 per cent and €62.6m (2023: €51.4m).
Nordics was next with 17 per cent and €47.3m (2023: €51.7m), followed by Western Europe with 16 per cent and €43.7m (2023: €27m) and the Rest of the world with two per cent and €3.9m (2023: €4.2m).
Revenue from locally regulated markets rose by 75 per cent to €150.4m (2023: €85.9m), a 55.4 per cent share of the group’s total revenue (2023: 36.3 per cent).
“The share of revenue from locally regulated markets amounted to 55 (36) per cent and includes Peru for the first time, where local gaming tax was accrued during the entire second quarter,” stated 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 have also been obtained.”
Betsson was awarded an AAA rating by Morgan Stanley Capital International ESG Ratings at the end of June, being recognised for its environmental, social, and governance efforts which it sees “as a prerequisite for running a profitable business long-term”.
In July, the operator agreed to a partnership with Italian football club Inter Milan, seeing its Betsson.sport brand being featured on the front of the team’s jerseys for the next four years.
Lindwall concluded: “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.”
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