Revenue was marginally ahead of the previous record of €236.8m set by Betsson in Q2. It was also 18.6% higher than the €200.3m posted in Q3 of last year.
Betsson reported growth across both its sports betting and casino businesses, but it was the latter that drove year-on-year growth. Casino revenue reached a record €172.1m in Q3 and turnover €8.29m, just short of the all-time high of €8.36bn in Q2.
Reflecting on the quarter, CEO and president Pontus Lindwall hailed casino as the main driver of growth. However, he also spoke of success within the sports betting business, referring to the recent acquisition of BetFirst Group. Betsson purchased Belgium-based BetFirst in June, with Q3 being the first full quarter that it was part of the Betsson business.
Lindwall said this acquisition, along with growth in the casino business, also helped push earnings before interest and tax (EBIT) to a record high in Q3.
“Betsson’s third quarter 2023 featured continued high customer activity, strong financial development and further investments in product and new markets,” Lindwall said. “The revenue and EBIT, which include the acquisition of BetFirst, were the highest ever for Betsson in a single quarter and mark the seventh quarter in a row with sequential growth.”
Casino represents almost three quarters of Q3 revenue
Breaking down Betsson’s performance in the three months to 30 September, casino remains by far its primary business. The segment drew 72% of all revenue generated during the quarter.
Mobile activity accounted for €144.9m, or 84%, of all casino revenue in Q3. This, Betsson says, was helped by the release of 327 new casino games, some 24 of which are exclusively available through Betsson.
It was also another positive quarter for sports betting, where revenue increased 2.4% year-on-year to €63.3m. Gross turnover also climbed 23.7% to €1.31bn. Betsson says this was helped by the launch of its sportsbook solution with Bethard in September.
“B2B is an important part of Betsson’s growth strategy and work continues to strengthen the B2B offering,” Lindwall said.
A further €2.1m in revenue came from other products including poker and bingo.
Betsson hails CEECA growth as revenue nears €100m
Looking to geographical performance, Central and Eastern Europe and Central Asia (CEECA) remains Betsson’s core market. Revenue in the region climbed 23.0% to €97.0m.
This, Betsson says, was mainly driven by growth in Croatia and Greece. It also notes success in Georgia, Latvia and Estonia, while securing a new online casino licence in Serbia during Q3 will support further growth.
Elsewhere, Latin America revenue grew 33.2% to €51.7m, mainly due to performance in both Argentina and Colombia. However, Nordics revenue slipped 14.3% to €46.1m, with declines across both Sweden and Finland.
Further growth in Western Europe for Betsson
Western Europe revenue hiked 56.9% to €39.2m. Betsson puts this down to growth in Italy, as well as the impact of the BetFirst acquisition in Belgium. Regional revenue here could be further boosted after Betsson secured an online sports betting licence in France at the end of Q3.
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.
The remaining €3.6m in revenue came from operations across the rest of the world. This is 6.5% lower than €3.8m in Q3 of last year.
Net profit and EBIT rise in Q3
Turning to operating costs, spending was 5.5% higher in Q3 at €100.6m. Personnel expenses remain the primary outgoing at €34.8m.
This left €56.0m in EBIT, a 45.8% rise from last year and a new quarterly record. After taking off €5.2m in finance costs, pre-tax profit hit €50.8m, up 44.7%.
Betsson paid €4.6m in income tax, resulting in a net profit in Q3 of €46.2m, a rise of 41.7%. In addition, EBITDA was 41.8% higher at €68.9m.
Year-to-date net profit nears €130m at Betsson
As for its year-to-date performance, revenue in the nine months to 30 September reached €696.3m. This, Betsson says, is 25.1% more than €556.7m in the same period last year.
Casino revenue was 32.8% higher at €489.3m, while sports betting revenue jumped 11.2% to €200.0m.
Operating expenses increased 16.7% to €313.1m leaving €153.5m of EBIT. Finance costs hit €9.6m, meaning pre-tax profit was €143.9m, up 62.1%.
Betsson paid €14.1m in tax, leaving a net profit of €129.7m, a rise of 58.0%. In addition, the operator says EBITDA climbed 57.4% to €190.8m in the nine-month period.
“I look forward with confidence to the final sprint of the year,” Lindwall said. “Geographical diversification, a solid balance sheet and strong cash flows create good conditions for continued investments in profitable growth to deliver long-term value creation for our shareholders.”