Q1 revenue spikes 30 percent as Betsson starts the year with record-high numbers
Author:
Muhammad Gregory
One of Europe’s biggest iGaming companies, Betsson, started 2023 with an extremely impressive result in the first quarter. The Sweden-based entity has racked up revenue of €221.9 million between January 2023 and March 2023. This number marks a massive year-on-year increase of 30 percent despite the number of active customers decreasing by 11 percent. The significant spike was credited to rapid growth in both the operator’s gambling segments, which include casinos and sports betting.
Betsson starts the year with record high numbers.
?Robert Anasch/Unsplash
Being a holding company, Betsson invests in or acquires iGaming and sports betting companies and operates via those brands. The company is home to 20 iGaming and sports betting brands. Some renowned iGaming brands include StarCasino and SuperCasino, while BetSafe, EuropeBet, ColBet, and more power the sports betting segment. Through these brands, Betsson has entered regulated gambling markets of 21 jurisdictions in 19 countries across the world, and it intends to further expand its operations by acquiring more online gaming and betting brands. Betsson-owned brands operate in 12 regulated gambling markets in Europe, including countries like Germany, Greece, and Italy. The remaining jurisdictions are spread across the United Kingdom and the African and American continents. Betsson has now been active in the gambling sector for 60 years and is an active member of the European Gaming and Betting Association (EGBA), Sports Betting Integrity (ESSA), and The Global Gambling Guidance Group (G4).
The last regulated European gambling market Betsson entered was the one in Greece in 2021. The same year, it also gained the official gambling permit to operate in the Isle of Man. In 2022, the company entered the Nigerian gambling market following the acquisition of a majority stake in BetBonanza before securing a gaming license in Ontario, Canada, earlier this year. The Swedish company intends to grow its revenue organically and seems to be on the right path. In the first quarterly report of the new year, Betsson reported a record-high quarterly revenue of €221.9 million. Not only did this mark a 30 percent year-on-year increase, but it also included an organic increase of 38 percent. Revenue increased in all 21 jurisdictions Betsson-powered brands are operating in, except the Nordic states of Denmark and Sweden. In 2023, Betsson will continue looking at opportunities to acquire iGaming brands. The last acquisition made by the Sweden-based company came last year when it acquired 80 percent shares of Malta-based B2B company KickerTech.
In the initial months of this year, Betsson focused on operational expansion in South America. The company entered Argentina by securing two gambling licenses for the city and province of Buenos Aires in 2020. Earlier this year, a third gambling license for the province of Cordoba was issued to Betsson-powered land-based operator Casino de Victoria. This is the same brand that gained the first two licenses in Buenos Aires. The launch of gambling operations in Cordoba will take place later this year. Apart from that, Betsson was active in sponsorship activities as well. Amidst reports that several jurisdictions intend to stop gambling or gambling-related companies from sponsoring sports teams and tournaments, Betsson decided to be the main sponsor for the 2023 ATP Chile Open that took place in February and March in the capital city of Santiago. Overall, the performance of the Swedish company marked consistent growth as the total revenue also recorded a slight quarter-on-quarter (QoQ) increase of 0.6 percent. Along with its growth year after year, Betsson follows all responsible gaming measures religiously.
The CEO of Betsson, Pontus Lindwall, expressed his satisfaction with Betsson’s progress and also spoke about the company’s responsible gaming strategy.
“The year has started well for Betsson, with continued profitable growth and strong cash flows. 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. Responsible gaming is an integrated part of Betsson’s strategy and a prerequisite for long-term success as a gaming operator. To increase transparency and raise awareness about risky gambling in Sweden and how proactive contacts can change player behavior, in the first quarter, Betsson started to report KPIs for risky gambling in the Swedish market.”
Detailed analysis of the first quarterly report of 2023
The total group revenue from B2B and B2C sources amounted to €221.9 million. The total revenue was 30 percent less in the corresponding quarter last year after Betsson only reeled in €170.2 million. The total revenue of Q1 also marked a 0.6 percent QoQ increase after the revenue recorded in the final quarter of 2022 amounted to €220.6 million. Both segments – Casinos and Sportsbook – recorded significant spikes. The casino revenue was up by 37 percent, while revenue generated via Betsson’s sportsbook went up by eight percent.
The EBITDA was up 62 percent compared to the corresponding quarter last year, with a sum of €54.3 million. This was also six percent higher than the EBITDA of the previous quarter, which was €51.1 million. The EBITDA margin of Q1 2023 was 24.5 percent, almost 5 percent higher than the EBITDA margin of Q1 2022. An 82 percent year-on-year increase was noted in the operating income, which was at €43 million. In the previous quarter, the operating income was €3 million less; in Q1 2022, it was only €23.6 million. The EBIT margin was 19.4 percent in the latest quarter, 5.5 percent higher than the corresponding quarter last year.
The net income was €36.6 million, corresponding to €0.28 per share. This was €15.7 million higher than the net income in Q1 2022. Operating cash flow increased 81 percent year-on-year from €26.9 million to €48.8 million. The net debt fell from €-16.9 million to €-104.5 million. A promising financial performance was recorded by Betsson despite the fact that the count of active customers recorded an 11 percent year-on-year decrease with 1,115,641 active accounts. This count was at 1,424,794 in the previous quarter.
Sportsbook partnered with Copa América Femenina in 2022
Betsson always looks for the best acquisition and sponsorship prospects worldwide. Before the company became the main sponsor of the 2023 ATP Chile Open earlier this year, it had another major partnership deal in South America. In July last year, Betsson became the official sportsbook partner of CONMEBOL Copa América Femenina 2022.
This move was also a part of the company’s Latin American expansion. The tournament was held in Colombia, a country whose regulated gambling market was targeted by Betsson in 2020. The Swedish entity did enter the Colombian market that same year with the complete acquisition of renowned Colombian sports betting operator ColBet.
