Betsson revenue reaches record high as online casino boom continues
A financial pattern emerges as gaming firms continue to be buoyed by Q2 online gaming upticks due to Covid-19
Betsson has today reported all-time high revenue of €149.6m for Q2 2020 following an annual increase of 20%.
The uptick was primarily driven by a 40% rise in casino revenue as EBITDA climbed to €29.7m for the second quarter, up from €28m in the same period last year.
Casino revenue rocketed to €125.5m, up from €89.6m, while sportsbook revenue dropped by 34% to €22.1m as the traditional sporting calendar ground to a halt due to the coronavirus pandemic.
Mobile casino revenue reached €90.3m and accounted for 72% of total casino revenue.
Active customer numbers also increased by 25% to 820,512, up from 658,957 in Q2 2019.
“I am proud that Betsson has delivered all-time high revenues under the most challenging conditions,” said CEO Pontus Lindwall.
“The second quarter was strong and followed the positive trend from the start of the year despite market challenges during this extraordinary period.
“The global pandemic had immediate effect on the company from March onwards but we responded quickly and decisively to make changes in the offer,” he added.
Lindwall added that global Covid-19 lockdowns had only accelerated the consumer transition from offline to online, which will stand to benefit Betsson in the long run.
Significant events during the period included the acquisition of Gaming Innovation Group’s B2C assets, as well as signing a deal with Dostal Alley Casino in Colorado to launch Betsson’s US market ambitions.
The Malta-based operator sees its future in the US as a B2B sportsbook supplier.
“Initially, we will start with B2C sports betting in the state of Colorado, with the ambition to sell our proprietary sportsbook to B2B customers in the future,” said the firm.
Betsson enjoyed further geographic expansion into Q2 having also entered Kenya’s sports betting market.
Lindwall added: “Our proprietary technology is a strategic advantage, our diversification in markets, verticals and brands makes us resilient to market fluctuations and our financials are rock solid.
“This makes me optimistic about the prospects for Betsson.”
The stock market did not quite see it that way as Betsson’s share price dropped by almost 8% in early trading.
Providing an update on early Q3 trading, the Stockholm-listed operator said average daily revenue was so far 35% higher than in Q3 2019.
Betsson did issue a word of warning over high levels of casino activity however, as Q2 levels might be difficult to replicate moving into the second half of the year.