CasinoBeats delves into the statistics behind the most interesting stories in the gambling industry. This week’s news roundup includes increased casino activity in France, first-quarter results for Kindred, Evolution and Betsson, and much more.
PS307.7m
Sortred reported a revenue total of PS307,7m for its first quarter 2024. This is the same as the PS306,4m it earned in the prior year’s period.
The company generated revenue of PS10.1m from its B2B and B2C businesses Relax gaming. This represents an increase of 11 percent YoY.
B2C gross wins revenue increased slightly from Q1 to PS297.6m (2023: PS297.3m). 84 percent of revenue came from local regulated markets. This is a record high. The number of active customers increased by 3% to 1,66 million (Q1 2023: 1,62 million).
Kindred stated that the UK, the Netherlands and other core markets were all experiencing growth in their casino, while the number of active casino customers increased by 6 per cent.
The B2C revenues were also affected by “weak performances in markets that are not locally regulated, and gross winnings revenue declined by 16 percent” compared to the same time period last year.
The gross profit for 2023 was PS172.6m (PS172m), with a margin of 56% “driven by changes in revenues and costs of sales”, which were PS135.1m. (2023, PS134.4m). Marketing costs were PS52.7m (PS54.8m in 2023).
The underlying EBITDA increased by 20% to PS59.3m (PS49.4m in 2023), driven by “a significant focus on cost optimization across marketing and administrative costs and the decreased negative contribution from North American following its announcement of closure”.
Earnings per share were PS0.15 (PS0.12 in 2023), and free cash flow was PS23.7m. Kindred said that “cost-reduction initiatives have been effective in driving improvements to results”.
Nils Anden , CEO said: “We are off to a good start in 2024. The business operations have been performing well. Operational initiatives are progressing according to schedule.
The headcount reduction plan announced last year is progressing according to the original plans and North America will be exited by the second half of this year.
Our growth plan, which we introduced in the fourth quarter of last year and focused on Europe, Australia, is continuing at a rapid pace, with strategic growth projects that are dedicated to local regulated markets.
EUR168m
Svenska Spel reported a Q1 2024 net gaming revenue (SEK 1,96bn, EUR168m), down 1 per cent YoY from the previous quarter (Q1 20,23: SEK 1,98bn). The operator attributes this to the restructuring and reorganization of their casinos following the closing of Casino Cosmopol in Malmo, Gothenburg, and Stockholm.
The Swedish operator stated that although the February closings had an impact on results, its core business remains stable, with Tur delivering strong results as it restructures the company with a goal of “long-term, sustainable value.”
Sport & Casino revenues were SEK549m (down three percent YoY, SEK565m in 2023), after a negative impact on the sports betting margins and pool games.
Eurojackpot, as well as Triss’s continued growth, helped Tur revenues to increase by 6 percent compared to the same time period last year.
The revenue of Casino Cosmopol & Vegas fell 32 percent YoY, to SEK 169m (SEK 247m in 2023), after two casinos were closed in Malmo, Gothenburg and the Stockholm casino was reduced in hours.
The online revenue increased by 6 per cent (SEK 1,09bn) YoY, or 56 per cent.
Svenska Spel reduced its staff during the third quarter to make room for future investment.
Svenska Spel’s CEO and president, Erik Strand said that the company had reorganised and reduced its workforce. A new organization was put in place on April 1.
We have now freed resources to invest in growth, transformation and a stronger gambling responsibility program. “These are significant investments that will create long-term value.”
3%
Autorite Nationale des Jeux (France’s gambling regulator) has announced that the gross gaming revenues from operators in France have increased by three percent year over year, and casino activity is up by eight percent.
Before a summer filled with sport, including the UEFA European Football Championship (UEFA EC) and Olympic Games in London, the authority said operators should be on the lookout for signs that customers may have a gambling problem.
In its 2023 report, the ANJ reported that the French gambling market had grown by 3.5% in turnover compared to last year.
The casino activity increased by 8.1% YoY, reaching a GGR record of EUR2.7bn. According to the authority, 73.8% of casinos now have a GGR that’s higher than in 2019. Slot machines contribute most toward GGR with 80% or more.
The seven gaming clubs saw an increase in activity that helped the GGR to grow by 10.9% compared to 2022 (EUR107.3m).
Isabelle FalquePierrotin commented, “The good health of this market shows that demanding regulations is not an obstruction to development.”
This growth is a major factor in the ANJ’s decision to focus on reducing excessive gambling.
EUR505.1m
Evolution Gaming has reported that 2024 is off to a good start, with Q1 revenue up 16.7% to EUR505.1m.
The firm’s EBITDA grew by 15.2 percent to EUR345.8m and fueled its net profit.
Live casino revenue for the company increased by 19,8 percent, allowing it to better leverage its market leadership in this area.
Martin Carlesund , Evolution’s CEO, said that the company still has work to do to expand its RNG business into other regions.
Carlesund said: “Revenues from Live Casino have increased 19.8 percent year-onyear, and compared with the prior quarter we’ve added EUR25.7m. Although the start of the year was strong, there is still much to do to leverage our market position and meet the demand.
Its CEO also applauded its table game performance, as the key growth in the market had an important impact on the evolution of their table offerings.
The CEO continued, “We have increased our capacity for tables to meet market demands and am happy to report that we are continuing the success of Q4 into the current year.”
We have made great progress with our expansion plans in several studios and have increased our hiring. All in all, we are seeing a marked improvement in the balance of supply and demand compared to the previous year.
12%
The casino growth has fueled a good start for Betsson in 2024. Revenues reached EUR248.2m – a 12-percent increase over the same period of last year.
The firm’s overall casino production grew 19% to EUR180.5m. This was driven by a 15% increase in the number of active customers and an increased level of customer engagement.
The group has also been able to benefit from 306 new games, as they have been able to enrich their casino product in many global markets.
In summarizing the quarter for Betsson CEO Pontus Lindwall stated that: “For Betsson first quarter 2024 has been characterised by continued positive developments with high levels of customer activity, strong growth, and improved profitability as well as a number of new growth-oriented projects.
The high level of customer activity has led to a strong increase in the gaming turnover, both for casino and sports bets, which have increased by 14 and 25% respectively. “Casino revenue increased 19% year-over-year.”
Lindwall said that a 50 percent devaluation in December of the Argentine Peso had a negative impact on the reported revenues for the Group in the first three months.
Western Europe was positive for the group, as they enjoyed a 58% revenue growth. The stability of StarCasino in Italy helped to boost igaming participation in that region.
The growth in Belgium was seen as it helped to counter a difficult period in Germany, and contributed to an increase in revenues in Western Europe.
Lindwall said: “Betsson is committed to generating stable growth of earnings over the long term. To achieve this, the strategy relies on geographical diversification, growth investments in existing markets and new markets, as well as B2B, M&A, and M&A.
Betsson has launched in Cordoba in Argentina, meaning that it now provides games in accordance with local gaming licenses in 3 provinces of Argentina. The acquired company, betFIRST launched a new offering of online casinos in Belgium, using the Category A+ license.
The license allows a full online casino to be offered, including table games, slots and a live casino. B2B remains a strategic focus where investments from previous years continue to pay off and perform well during the third quarter.
EUR43.2m
Kambi revealed that its operations in 2024 are off to a good start. The impact of Napoleon Games leaving the company was minimal, with EUR43.2m of revenues for Q1.
In a live streaming, the CEO Kristian Nylen provided further insights into the results of the company. He stressed that despite revenue not being accounted for from the Napoleon deal during Q1 there was no significant impact on the performance.
David Kenyon the Group’s CFO said that the performance shows Kambi is stable and will continue to grow after leaving North America.
Cash flow, excluding M&A and working capital (EUR5.4m) increased slightly to EUR5.4m from EUR3.2m.
The firm also reported that its EBIT operating profit was EUR4.4m for the first quarter of 2024, which remained at EUR4.5m at a margin 10.2 percent (10.3%). EBITA for acquired intangibles was EUR5.8m (5.8m), with a margin 13.3% (13.1%).
Nylen also stated that it is ‘not impossible’ to achieve financial targets by 2027, either organically or through M&A.
The supplier is on a transformational path that will continue through 2024. “Organic growth” he said, was the key to its success.
