Revenue reaches record €221.9m at Betsson in Q1
The operator was able to post a number of all-time high figures in the three months through to 31 March, including record revenue within its casino business and record results for a number of geographical markets.
President and chief executive Pontus Lindwall said growth in regions around the world was the result of investment in previous years, with Betsson now reaping the rewards of this strategy.
“Having a long-term perspective is the key when it comes to Betsson’s view about how the business should be run and how value is created for shareholders,” Lindwall said. “In the past years, investments have been made to expand geographically to new markets and to strengthen the product offering and the competitive position. We can see that these efforts continue to pay off.
“Betsson started 2023 with yet another strong quarter, again delivering record numbers for revenue and EBIT, even though the first quarter historically often had less activity than other quarters. Revenue increased organically by 38%, with sustained positive developments in both sports betting and casino.”
Revenue in the first quarter reached €221.9m (£196.7m/$245.4m), up 30.4% from €170.2m in the same period last year.
Casino was the primary source of revenue for Betsson in Q1, with revenue reaching a record €152.0m, up 36.9% year-on-year. 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.
Looking at geographical performance, Central and Eastern Europe and Central Asia (CEECEA) was the operator’s core region with €93.5m in revenue, an all-time high helped by record revenue in Croatia, Greece and Lithuania.
Nordics revenue slipped 4.2% to €51.9m, despite record revenue in Denmark, while Latin American revenue was 23.1% higher at €45.2m, helped by Betsson’s enlarged operations in Argentina.
Elsewhere, Western Europe revenue climbed 22.4% to €27.2m, with Italian revenue reaching an all-time high, while Rest of World revenue was up 13.2% to €4.2m, helped by Betsson increasing its ownership in Nigerian gaming operator Betbonanza in Q2 of 2022.
Turning to spending and the cost of services increased by 17.9% to €74.4m, while operating expenses were also up 25.2% to €104.5m. Betsson also noted €2.1m in financial costs, which in turn meant pre-tax profit was €40.9m, up 85.9% year-on-year.
Betsson paid €4.3m in income tax, with net profit for the quarter reaching €36.6m, a rise of 75.1% from €20.9m in Q1 of 2022. In addition, EBITDA jumped 62.6% to €54.3m.
“The year has started well for Betsson with continued profitable growth and strong cash flows,” Lindwall said. “We can look ahead to the rest of the year with a solid financial position that enables continued investments in sustainable growth and value creation for our shareholders.”