Betsson hails strongest year ever despite Q4 stumble
Revenue and EBITDA down in fourth quarter after Netherlands exit, although active users sees sharp rise
Betsson has praised its “strongest year-to-date” despite posting a 10% year-on-year (YoY) fall in revenue for the fourth quarter of 2021 from SEK1.76bn (£141.9m) to SEK1.6bn.
Casino revenue slid 9% while sportsbook revenue tumbled 11%, the operator revealed in its latest set of financial results.
It meant gross profit was down 11% for the quarter 2021, however it was up 5% on the year from SEK4.1bn to SEK4.32bn.
Continuing the trend of the slow end to the year, EBITDA was down 25% on Q4 2020, yet was 5% up on the 12 months.
However, group revenue for the whole of 2021 rose by 4% compared to the previous year to SEK6.67bn.
The Stockholm-listed operator pointed to “the lowest sportsbook margin ever seen” of 6% as well as changes in regulation in Germany and its forced exit from the Netherlands for the decline in growth towards the end of 2021.
The company pointed specifically to October which saw an “unusually high number of instances of favourites winning, especially in football”.
Despite the restrictions in Germany, which led to Betsson suspending its sportsbook offering, active users increased by 17% YoY from 989,969 in Q4 2020 to 1,161,683 in Q4 2021.
Betsson ceased trading in the Netherlands at the beginning of October of 2021 but Betsson AB CEO Pontus Lindwall confirmed to EGR that the licensing process is underway internally with a view to having it submitted for review by the regulator, the KSA, by the end of Q1 2022.
Lindwall spoke of the acquisitions that the company has made throughout 2021, including Inkabet in South America for $25m, enabling Betsson to offset stricter regulation in Europe by expanding into new territories. Latam is a significant focus with a new hub servicing the region in Bogota, Colombia.
He told EGR: “For the time being, it is not a very large hub in terms of headcount. We have a couple of people who have moved there who are long-term Betssonites, who know the countries. They will help to build and grow the operation and I have no doubt that they will be able to serve the entire Latam market with their knowledge.”
After much delay, Betsson will launch its B2C offering in Colorado during Q1, signalling the firm’s first customer-facing foray into North America.
Attentions will then turn to Ontario, which is set to launch online sports betting and gaming on 4 April, although Lindwall did concede that Betsson would not be live on that specific day.
Speaking about the US market where, despite its relative infancy, there exists an already incredibly crowded market, Lindwall was confident that Betsson has what it takes to corner a market.
“Our first US sportsbook offering will be in Colorado and once operators see what we have to offer we will have to see what happens next.”
“We believe in the product we are offering and that it is important for US markets. We have a product that is different from the other efforts. We know how to do things in a certain way. I’ve done that for a long time. I know about product development.”
Lindwall confirmed that 2022 had started strongly and that revenue was up 4% so far on the corresponding quarter in 2021.
At the time of writing, Betsson’s share price on the Stockholm Nasdaq had surged 13% to SEK57.