Betsson Posts Highest Quarter Revenue in Q1
Betsson Group has released its financial report for the first quarter of the year, showing a 12% increase in revenue to €248.2m. The figure marks the highest revenue ever generated by the company in a single quarter.
Betsson's highest perfoming region, the CEECA, contributed €110m to the overall revenue in Q1. (Source: Pete Linforth, Pixabay)
LISTEN TO THIS ARTICLE:The company posted an operating cash flow of €50m for the quarter, up by 2.46% compared to the €48.8 million recorded in the same period last year. Adjusted EBITDA also increased by 32% to €71.6m. Q1 also saw the group’s corporate performance reaching a net income of €43m, 19.44% higher than 2023’s €36m.
Additionally, Betsson’s online casino segment showed improvement, with a revenue of €180m in the quarter. The figure was 19% ahead of the €152m earned a year ago.
However, despite reaching a peak wagering volume of €1.69bn, Betsson’s sportsbook results fell by 3% to €65m. This decline was attributed to negative macroeconomic trends in South America.
Regarding period trading, the group’s license revenue for system delivery to B2B customers amounted to €68m, 19.30% ahead of 2023 comparatives of €57m. The income also constituted 27% of Betsson’s revenues.
For Betsson the first quarter of 2024 was characterised by a continued positive development with high customer activity, good growth and strengthened profitability, as well as new growth-oriented initiatives. Revenue was up 12 percent year over year, and operating income (EBIT) increased as much as 35 percent to a new record level, while the operating margin strengthened to 23.3 (19.4) percent.
Betsson’s Region Revenues Show Mixed Results
In terms of regional revenue distribution, Central and Eastern Europe and Central Asia (CEECA) remains Betsson's top revenue-generating region, with 18.0% growth in revenue to €110m. This surge was fueled by robust casino activity in Greece, Croatia, and Latvia.
Betsson’s income in Western Europe increased by 58% to €43m. The group ascribed the increase to the high casino activity in Italy and improved sportsbook performance in Belgium, which countered the decreases in Germany.
In the Nordics, the group’s revenue declined by 9.6% to €46.9m. Although Denmark’s revenue increased, it was highly countered by the underperformance in Sweden’s casino market.
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Revenue also decreased in Latin America by 3.3% to €44m, primarily due to a lower sportsbook margin and unfavorable fluctuations in currency exchange rates. Although Argentina showed year-over-year growth, it witnessed a quarterly decline. Similarly, Peru posted lower revenues due to reduced sportsbook activity.
In the report, the group noted a 15% increase in active customers to 1.28 million.
Key Operational Objectives Achieved
Betsson also achieved some key operational goals during the first quarter, including the launch of a new online casino in Belgium under a category A+ license.
The firm strengthened its foothold in the European gambling market by acquiring Holland Gaming Technology, a licensed operator in the Netherlands, and Holland Power Gaming BV, a game studio, for €28m. Although the transaction was finalized in February, it still awaits post-closing approval from the Netherlands Gaming Authority (KSA).
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