Group revenue at Betsson for the three months through to 30 September hit €280.1m (£233.7m/$302.2m). This is 17.9% more than Q3 last year and 3.1% above the previous record set in Q2 this year.
Analysing the Q3 results, Betsson CEO and president Pontus Lindwall (pictured) referenced high customer activity as a key driver. He notes new record levels across both customer deposits and gaming turnover during the quarter.
Lindwall also paid tribute to Betsson’s global expansion efforts, highlighting growth in several regions. This, he added, helped increase revenue share from locally regulated markets from 45% in Q3 last year to 58%.
“Yet again Betsson reports quarterly records in revenue and EBIT,” Lindwall said. “This means the 11th quarter in a row with sequential growth on the EBIT level.
“Growth was broad based with sustained high activity in the regions Latin America, Western Europe and Central and Eastern Europe and Central Asia (CEECA),” Lindwall said.
Lindwall also referenced the August acquisition of the Sporting Solutions’ trading, pricing and sports betting risk-management offerings from FDJ. This, he said, will strengthen its sportsbook offering across both B2B and B2C.
“The acquisition will primarily contribute with faster and more flexible odds setting, stronger risk management and enhanced scalability for the sportsbook product for both B2C and B2B,” he said.
Double-digit growth for casino and sportsbook in Q3
Breaking down the figures, Betsson saw growth across both its two core businesses: casino and sportsbook.
Casino was again the primary source of revenue during Q3, generating €209.9m, up 22% and representing another new record. On top of this, casino turnover jumped 13.7% to an all-time high of €9.42bn.
Turning to sportsbook, revenue climbed 7.9% year-on-year to €68.3m. This was helped by an 18.6% increase in total turnover, corresponding to a margin of 7.4% for Q3.
Revenue from other products, including poker and bingo, edged down 4.8% to €2m.
On top of this, Betsson saw customer deposits reach a record €1.48bn, up 19.8% from last year. In addition, total registered customers increased 5.9% to 31.1 million, while active customers climbed 9.8% to 1.4 million.
Revenue higher in almost all regions for Betsson
Geographically, CEECA (Central & Eastern Europe & Central Asia) remains Betsson’s core region, generating €116.3m in revenue, up 20% year-on-year in another record. Growth was driven by increased underlying activity in casino, with both Croatia and Greece reporting all-time high revenue. Betsson also reported growth within Estonia, Latvia and Lithuania.
Elsewhere, Latin America revenue hiked 34.2% to a record €69.4m, again driven by casino. The group reported growth in Argentina, Colombia and Peru, while in Q3, it also applied for a licence in Brazil to further extend its reach in the region.
The Nordics were the only region see a decline, with the €45.3m in revenue 1.8% lower than last year. This was attributed to less activity within its casino offering.
Meanwhile, Western Europe revenue climbed 14.2% to €44.7m, driven by a record showing in Italy. Betsson also references growth in Belgium and noted the decision to increase its ownership in the Betsson France joint venture from 49% to 67%.
Finally, operations across the rest of the world generated €4.4m in revenue, up 22.9%. This was, again, mainly due to growth in the casino segment.
Net profit dips despite revenue growth
Despite operating expenses rising 13.5%, the revenue rise meant operating profit was also up. For Q3, operating profit reached €280.1m, up 17.9%.
The group accounted for €7.9m in financial costs, meaning pre-tax profit climbed 11.4% to €56.6m. After paying €13.2m in tax, this left a net profit of €43.4m, which is 6.1% lower than last year.
As for EBITDA, this increased 16.6% year-on-year to €80.3m.
Year-to-date revenue just short of €800m
As for how Q3 impacted Betsson in the year-to-date, revenue for the nine months to the end of September was €799.8m. This is 14.8% higher than at the same point in 2023.
Operating profit increased 21.5% to €186.5m, while pre-tax profit was also 17% higher at €168.3m. After tax, net profit for the period topped €130.6m, marginally higher than the €129.7m reported last year.
As for EBITDA, this amounted to €229.5 for the year-to-date, a rise of 20.3%.
CEO Lindwall also made reference to how the start of Q4. Daily revenue has been around 14% higher than the average for the full fourth quarter last year.
“Hence there is reason to feel confidence about the last quarter of the year, which is usually also the seasonally strongest quarter for customer activity,” Lindwall said.
Original article: https://igamingbusiness.com/finance/quarterly-results/revenue-record-betsson-q3/
