Active players increase drives strong second quarter for Betsson

Q2 revenue increased by 14.8% to €271.8m (£229.0m/$295.9m), a quarterly record for Betsson. In Q2 last year, the operator posted revenue of €236.8m.

A large part of this was down to a rise in active players to 1,404,147 leading to an increase in deposits. Total customer deposits in Q2 were 15.0% higher at €1.43bn, a new record for the group.

This resulted in the operator’s core casino and sports verticals growing during the quarter. Casino remains the main source of revenue, with Q2’s €191.1m total up 15.8% on the prior year, setting a new record for the business and making up 70% of the quarterly total.

Sportsbook operations contributed a further €78.4m, a 12.8% year-on-year rise. This offset Betsson’s weaker segments, including poker and bingo, which made up the remaining €2m, down 13% from Q2 2023.

CEECA region remains Betsson’s main revenue driver

While on the whole this is positive, growth fluctuated by region, with some markets seeing more success than others.

Central and Eastern Europe and Central Asia (CEECA) remains its primary revenue source at €114.0m, up 11.1%. This accounts for 42.0% of all Q2 revenue and is a record high for the group. 

In this region, Betsson says growth was mainly driven by increased underlying activity in both casino and sportsbook. Croatia, Lithuania and Estonia all reported record revenue during Q2, while there was also growth in Latvia and Greece. Georgia, however, saw revenue fall due to a lower sportsbook margin and lower activity in the casino product.

LatAm emerging as key region for Betsson

Elsewhere, Latin America revenue jumped 21.8% to a record €62.6m, or 23.0% of total Q2 revenue. Betsson put this down primarily to growth within its casino products across the region. It notes growth in Argentina and Colombia but a decline in Peru. However, it maintains its new Peru licence, secured in Q2 for its Betsafe and Betsson brands, will help improve operations in the longer run.

Western Europe saw the most growth in Q2, with revenue up 61.9% to €43.7m, representing 16.0% of total revenue, along with the launch of the Betsson brand in Italy and roll-out of Betfirst in Belgium.

However, Betsson did report a drop in Nordics revenue, which was down 8.5% to €47.3m, accounting for 17% of the Q2 total. This, the group says, is mainly due to lower customer activity in the region.

Finally, rest of world revenue slipped 6.6% to €3.9m, or 2% of the quarterly total. This was mainly driven by a weaker performance in Nigeria.

Net profit down despite revenue rise in Q2

An increase in cost of services failed to offset revenue growth, with gross profit up 8.8% to €176.8m. Operating expenses were also 4.4% higher in Q2 at €112.7m, with spending up in all areas.

However, Betsson was able to post an improved operating profit of €64.1m, with this being 18.2% higher year on year. It was also the 10th consecutive quarter of growth for the group. After deducting €6.9m in finance costs, pre-tax profit reached €57.1m, up 9.6%.

Betsson paid €12.7m in tax, much more than the €5.2m noted last year. As such, net profit in Q2 hit €44.4m, down 4.7% year on year. However, EBITDA jumped 14.8% to €77.6m.

“The second quarter of 2024 meant continued high growth and strengthened profitability with new records in both revenue and operating income for Betsson,” CEO Pontus Lindwall said.

What about Betsson’s H1?

Looking now to H1 covering the six months to 30 June, Betsson reported a 13.3% year on year increase in revenue to €519.7m. 

Betsson does not offer a full breakdown of H1 figures. It does, however, set out certain, key financial information. This includes gross profit rising by 9.9% to €340.7m. As for operating expenses, these were only 2.9% higher at $218.7m, with personnel costs the main outgoing at €74.1m.

Operating income climbed 25.1% to €122.0m, while after including €10.4m in finance costs, pre-tax profit topped €111.6m, an increase of 20.0%. 

Betsson paid €24.4m in tax, leaving a net profit for H1 of €87.2m, up 4.4% year-on-year. In addition, EBITDA jumped 22.4% to €149.2m.

“I am pleased with what we have delivered so far this year,” Lindwall said. “I 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.”