Betsson Report Increased Revenues For Q1

Pontus Lindwall at the IGA Awards

Betsson CEO and president, Pontus Lindwall, expressed his satisfaction with the company’s performance in Q1. The financial report revealed a significant increase in revenue, higher net profit, and a record operating profit of €57.9 million. This represents an 11.9% YoY growth.

The company achieved a revenue of €248.2m during this period, with notable highlights in Italy, Belgium, and Argentina. Betsson launched a second brand in Italy, accompanying its flagship Betsson brand, which has been active in the country for over a decade.

Betsson also expanded its reach in the Western European market by introducing Betfirst in Belgium. This move allowed the company to tap into a new customer base and strengthen its presence in the region. Additionally, Betsson acquired Holland Gaming Technology, a gaming operator with a Netherlands license, and game studio Holland Power Gaming, further expanding its portfolio and market reach.

In Argentina, Betsson’s entry into Cordoba marked another significant milestone. With this expansion, Betsson now holds local gaming licenses in three Argentine provinces, demonstrating its commitment to geographic diversification and growth investments.

Analyzing the Q1 figures, Betsson experienced mixed results across its core segments. While the casino segment witnessed substantial growth, with revenue increasing by 18.7% to €180.5m, the sportsbook segment faced a slight decline. Casino revenue from mobile platforms accounted for 84.0% of the total casino revenue, highlighting the importance of mobile gaming in Betsson’s success.

On the other hand, sportsbook revenue slipped by 2.5% to €65.5m, despite a 24.9% increase in gross sports betting turnover. This decline could be attributed to various factors, including market fluctuations and competition. Betsson aims to address these challenges and capitalize on the immense potential of the sports betting market.

Geographically, Central and Eastern Europe and Asia (CEECA) emerged as the core region for Betsson in Q1. The company experienced an 18.0% revenue growth in this region, amounting to €110.1m, which accounted for 44.0% of the total revenue. Betsson achieved record figures in Croatia, Greece, and Latvia, showcasing its strong presence and popularity in these markets.

In Western Europe, Betsson witnessed a remarkable revenue jump of 59.9% to €43.4m. This growth can be attributed to the successful launches in Belgium and Italy. However, the Nordics region faced a decline of 9.6% in revenue, primarily due to lower activity across sportsbook and casino in Sweden.

Latin America also experienced a slight decline in revenue, falling by 3.3% to €43.7m. This decline was mainly driven by negative currency effects in Argentina. The rest of the world revenue slipped by 5.8% to €3.9m, primarily impacted by a negative currency effect in Nigeria.

Betsson’s Q1 financial report showcased strong profitability, with operating costs increasing by 1.4% to €106.0m. The cost of services also witnessed a moderate increase of 13.3% to €84.3m. Despite these incremental costs, Betsson achieved an all-time quarterly high operating profit of €57.9m.

The financial costs totaled €3.4m, resulting in a pre-tax profit of €54.5m, which reflects a significant YoY increase of 33.3%. After paying approximately €11.7m in taxes, Betsson recorded a net profit of €42.8m, representing a 16.9% rise. Moreover, the adjusted EBITDA for Q1 amounted to €71.6m, with a higher margin of 28.8%, further emphasizing Betsson’s strong financial performance.

While Betsson celebrated its exceptional Q1 growth, the company faced regulatory challenges in certain markets. In Finland, Betsson’s BML Group subsidiary became the first gambling operator to be blacklisted by the National Police Board (NPB). This ruling followed Betsson’s loss in a court case against the NPB. As a result, banks, payment service providers, and virtual currency providers are now obligated to block all money transfers from Finland to BML.

Similarly, the Dominican Republic recently blacklisted Betsson and over 40 other major operator brands in anticipation of market re-regulation. Resolution 136-2024, signed into law in March, establishes a new regulated framework for online gambling. Operators without a license, including Betsson, Betway, Betfair Colombia, and others, are no longer authorized to operate in the country.