Home > Finance > Quarterly results > Betsson forecasts record revenue and operating profit in Q2

Betsson forecasts record revenue and operating profit in Q2

| By Robert Fletcher
Betsson expects to post record revenue and operating profit during the second quarter of its 2023 financial year.
Flutter Q1

The operator said revenue in the three months to 30 June is likely to hit between €235.5m (£200.3m/$259.8m) and €237.5m. This would be a new quarterly revenue for Betsson.

In terms of operating profit, this is estimated to amount to between €53.5m and €55.0m, another new quarterly high. This, Betsson said, would be the result of higher revenue and the success of its business model.

Picking out key figures for Q2, Betsson said it experienced continued high customer activity both in casino and sports betting. This, it added, resulted in a strong financial development for Betsson.

Preliminary sportsbook margin for Q2 was approximately 8.2%. This was in line with the same quarter last year (8.3%) but higher than the rolling average for the last eight quarters (7.8%).  

Betsson said revenue was higher in all regions year-on-year. Breaking down performance in each market, Nordics and Latin America both held a 22% share of all revenue in the quarter. 

Western Europe revenue was 11%, while Central & Eastern Europe and Central Asia (CEECA) was 43% and rest of the world 2%.

Licence revenue for system delivery to B2B customers is expected to be between €64.0m and €65.5m. This would correspond to approximately 27% of group revenue.

Looking at Q3 performance to date, average daily revenue to 9 July was 13.7% higher than in the full third quarter last year.

Building on success

The deals come on the back of a record first quarter at Betsson, during which revenue hit an all-time high of €221.9m.

This performance was driven by record revenue within its casino business and record results for a number of geographical markets.

Casino was the primary source of revenue in Q1, with revenue reaching a record €152.0m, up 36.9%. This was helped by the launch of 319 new casino games in the period, 16 of which were exclusive to Betsson brands.

Sportsbook revenue was also up 19.1% to €67.2m, with €55.7m of this coming from betting on mobile. Revenue from other products including poker and bingo slipped 1.9% to €2.7m.

Q1 built on Betsson’s “best ever year” in 2022, helped by a record Q4 performance.

M&A strategy

M&A has proved to be a key part of this growth. Betsson last month announced it will acquire Belgian sports betting and gaming operator Betfirst Group for €120.0m.

Betsson will pay €117.0m up front to acquire all shares in Betfirst. A further €3.0m will be due subject to the delivery on certain agreed financial targets.

Established in 2011, Betfirst holds licences for both online sports betting and dice games in Belgium. The group also operates approximately 450 points of sale across Belgium and owns a gaming arcade.

Betsson intends to continue operating the Betfirst sports betting business, while exploring potential synergies in the mid-to-long term.

Last October, Betsson also announced the €14m acquisition of sportsbook supplier Kickertech, increasing its focus on B2B operations. KickerTech brought in €2.6m in revenue over the 12 months to 30 September, while its earnings before interest and tax were €1.3m.

In August 2021, Betsson’s SW Nordic subsidiary acquired the B2C online gambling business of Latin American operator Inkabet. Betsson said the acquisition strengthens and expands its presence in Latin America.

Targeting further growth with Groupe Partouche

Betsson will also be able to expand its new Belgian offering with online casino after linking up with French casino operator Groupe Partouche.

The partnership will initially focus on Belgium, although there is scope to expand into other regulated markets.

The Belgium launch remains subject to obtaining the required licences. Groupe Partouche operates land-based casinos in France and Switzerland and holds an offline casino licence in Belgium, which can be extended to an online casino licence.

An online licence would enable the operator to offer a full range of online casino products.

Betsson will publish its Q2 results in full on 20 July.

Subscribe to the iGaming newsletter