EGR Power 50 2021: 10. Betsson
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10. Betsson (7)
FINANCIALS: Revenue for the first three quarters of 2021 was SEK5.1bn, up 10% YoY (organic growth was 20%). EBIT increased 21.8% YoY to SEK983.2m
STRATEGY & IMPACT: Very much a gaming-centric operator (casino accounts for around three-quarters of revenue) that is quite heavily exposed to grey markets, dark grey including Turkey
GEOGRAPHIC REACH: Growth drivers in recent times are the CEECA region (31% of Q3 revenue) and RoW (17%), or more specifically the flourishing Latam market, where Betsson has broadened its footprint
INFLUENCE & LEADERSHIP: Historically a leading operator in the Nordics, Betsson’s standing in the region – and the wider online gambling industry – has been somewhat eroded. Lindwall is a steady hand on the tiller
Rounding out the top 10 is Betsson, which slips three places after something of a mixed performance over the last 12 months. Then, of course, there was the bizarre turn of events recently with Betsson AB CEO Pontus Lindwall carrying out corporate Hokey Cokey. To summarise, the board announced in September that Lindwall was to step down, only for this decision to spark a shareholder backlash, leading to chairman Patrick Svensk’s departure and the board determining that Lindwall should remain in his post. Quite the U-turn.
Operationally, the first nine months of 2021 have been solid, with revenue up 10% and operating profit rising almost 22%. And in Q2, active customers hit an all-time high of more than a million and sportsbook revenue soared 125%. Dig a little deeper, though, and there have been challenges; Western Europe revenue slumped 27.5% in Q3, a fall Betsson largely blamed on German regulations and the consolidation of its UK operation to one brand, Rizk, as well as tougher UK conditions. The firm also expects a SEK25m (£2m) per month decline in operating profit per month from the Dutch market retreat.
The Nordics, which accounts for around a third of group revenue, slid 2.5% YoY in Q3 in terms of revenue, yet it is parts of the globe further from home that are proving particularly fruitful for the Swedish operator. For instance, CEECA (Central and Eastern Europe and Central Asia) revenue grew 21.4% in Q3, aided by recent entries into Greece and Croatia, together with standout growth in the Baltic states. Likewise, Latam has been a star performer, capped by all-time-high turnover in the third quarter helping to drive RoW revenue up 58.8% in the period.
What’s more, the company acquired the B2C arm of Inkabet, which is focused on South America’s western region, while Betsson itself took centre stage at the Copa America in Brazil. The firm said Lionel Messi’s perfectly timed celebration at Argentina winning the competition in front of a Betsson-branded LED board was seen by more than 10 million viewers. Further north, Betsson is positioning itself for the regulating Canadian market by taking a 28% slice of sports and igaming content provider Slapshot Media for C$3m. However, progress in the US has been conspicuously ponderous, with its debut – the B2C sportsbook launch in Colorado – slated for Q1 2022.