Betsson’s CEO and President Pontus Lindwall praised his group for its “positive” start in 2024, after the company posted an increase of revenue and net profit as well as a record operating profit during Q1.
The revenue for the quarter ending 31 March was EUR248.2m ($266.3m/£212.9m). Betsson reported growth in several markets, including the UK and US.
Betsson’s Q1 highlights included the launch of its second brand in Italy. In March, its flagship Betsson launched alongside StarCasino which has operated in Italy for more than a decade.
Betsson announced in Q1 the launch of Betfirst Belgium to further extend its reach into Western Europe. It also acquired Holland Gaming Technology – a gaming company with a Netherlands license – and the game studio Holland Power Gaming.
Betsson has also launched in Cordoba, Argentina. The group can now offer games in 3 provinces of Argentina under gaming licenses. It was still not enough to stop a small drop in Latin American revenues.
Lindwall, pictured above, said that “Betsson aims to achieve stable growth of earnings over the long term.” The strategy is to diversify geographically and invest in growth within new markets and existing markets. It also includes B2B, M&A and investments into the current markets.
Growth in the casino industry offsets declines in sportsbooks
Betsson’s core business segments had mixed Q1 results. The launch of new casino games helped boost revenue by 18.7%, to EUR180.5m.
Mobile casino revenues were EUR151.2m, or 84.0%. Casino gross revenue also increased 13.8%, to EUR8.81bn in Q1.
Sportsbook revenues fell 2.5%, to EUR65.5m. Of this, 81.0% came from mobile. The increase was due to a 24.9% rise in the gross turnover of sports betting, which reached EUR1.66 billion.
Other products, such as poker and bingo, also saw a drop of 18.5%.
Betsson’s growth is driven by Western Europe and CEECA
Central and Eastern Europe, Asia and Africa (CEECA), is Betsson’s core geographical region. Revenue in Q1 grew 18.0%, to EUR1110.1m or 44.0%. The record numbers in Croatia, Greece and Latvia helped to boost this.
Western Europe’s revenue increased by 59.9%, to EUR43.4m. This was mainly because of new launch in Belgium and Italy. Western Europe represents 17.0% of Betsson’s total revenue.
Betsson also noted declines in other areas. The Nordics saw a 9.6% drop in revenue to EUR46.9m. Sweden reported lower sportsbook and online casino activity. Latin America’s revenue fell by 3.3%, to EUR43.7m. This was due mainly to currency fluctuations in Argentina.
The rest of the world’s revenue fell 5.8%, to EUR3.9m. This was primarily due to a currency impact in Nigeria.
Profit tops EUR42.8m
Cost of service increased by 13.3%, or EUR84.3m. Total operating costs rose 1.4%. Betsson achieved a record-breaking operating profit of EUR57.9m.
The group paid EUR11.7m in tax, resulting in a net profit of EUR42.8m. This is an increase of 16.9%. Taxes were paid by the group of EUR11.7m. This resulted in a Q1 net profit of EUR42.8m. A 16.9% increase.
The adjusted EBITDA in Q1 was EUR71.6m. This is up by 31.9% with an improved margin of 28.8%.
Lindwall stated, “After a positive start of the year, now we look forward to watching the final rounds in European football leagues, cups and competitions, before the time comes for the national teams to test their strength in the UEFA Euro 2024, and Copa America, in June and Juli,” Lindwall added.
There is a football fever in the air and Betsson has already begun a series of initiatives to make sure that it can deliver an impressive player offer to both new and old customers for these important championships.
Betsson is facing regulatory concerns
Betsson’s Q1 was not without its challenges. Betsson BML Group, a subsidiary of Betsson, was the first gaming operator blacklisted by Finland’s National Police Board in February.
Betsson lost a legal case against the NPB. All banks, virtual currency and payment providers must now block any money transfer from Finland to BML.
Veikkaus is the gambling monopoly of Finland. It can only operate and promote its services in that country.
Dominican Republic blacklisted Betsson, along with more than 40 other major operators, soon after the end of the third quarter.
The market is preparing to reformulate. On 26 March Resolution 136-2024, a law regulating online gambling was passed.
Operators who don’t have a license will not be allowed to work in the country. This includes Betsson Casino, Betway Casino, Betfair Colombia Casino, Bet365 Casino, Mr Green Casino Casino, 888Sport, and William Hill.
