Betsson revenue up by almost a third as CEECA and Latam continue to shine

Betsson has recorded a 30% year-on-year (YoY) increase in revenue for Q1 2023 as the firm’s Latam and Central and Eastern Europe and Central Asia (CEECA) divisions continue to deliver.

Revenue for the first three months of the year increased from €170.2m to €221.9m (£196.6m) as casino reasserted itself as the dominant vertical for the group.

Casino revenue amounted to €152m, increasing by 36.9% YoY, to take a group revenue share of 69%.

Sports betting revenue jumped 19.1% YoY from €56.4m to €67.2m, with sports betting margin down slightly from 8.3% to 8%.

Breaking it down by region, CEECA and Latam continued to be the shining lights in Betsson’s portfolio.

CEECA revenue jumped 75.1% from €53.4m to €93.5m, with Betsson highlighting Croatia, Greece, Georgia and Lithuania as key growth markets. The €93.5m figure represents an all-time high in revenue for the company in the region.

Elsewhere, Latam saw revenue increase 23.1% to €45.2m YoY but did register a fall quarter-on-quarter, given the negative season effect post-World Cup played in November and December.

Western Europe returned a 22.4% YoY increase, with Italy driving the business given the continued regulatory difficulties in Germany, with revenue declining in the market compared to Q1 2022.

The Rest of the World segment increased 13.2% to €4.2m, with Betsson’s Nigerian venture, Betbonanza, the key driver of growth. Betsson upped its 25% stake in the company to 60% in Q2 2022.

However, there was material decrease in the Nordics, as revenue slipped 4.2% to €51.9m. Betsson said Norway and Sweden acted as the main drag in the region, with the operator required to adhere to new regulations in Norway to remove all Norwegian names, words and associations to the country from its sites.

Despite the strong overall revenue growth, there was an 11.2% decrease in the number of active customers during the quarter. However, this was negated by a 46.7% increase in customer deposits, which soared from €782.5m to €1.1bn.

Elsewhere, EBITDA jumped 62% from €33.4m to €54.3m, with a corresponding EBITDA margin of 24.5%. Operating income (EBIT) also surged, increasing 82% from €23.6m to €43m during the reporting period.

During the quarter, Betsson also increased its ownership in regulated Colombian operator Colbet from 88% to 91% and secured B2C and B2B licences for the Ontario market.

Speaking on the group’s performance, Betsson CEO Pontus Lindwall championed the firm’s geographic diversity as the key reason for its continued growth.

He said: “Betsson started 2023 with yet another strong quarter, again delivering record numbers for revenue and EBIT, even though the first quarter has historically often had less activity than other quarters.

“Revenue increased organically by 38%, with sustained positive developments in both sports betting and casino. Geographically, revenue increased in all regions except for the Nordics.

“The new business in Argentina is developing well – revenue increased strongly during the quarter, and Betsson continues to invest in marketing to build brand awareness in this regulated market.

“In February, a third licence in the country was obtained, in the province of Cordoba, where a launch will take place later this year. Revenue from B2B continues to increase, which is a sign of strength that reflects the investments made in the past years into product and tech development as well as M&A.

“Thanks to Betsson’s scalable business model, these investments can be absorbed with maintained or higher profitability over time,” the CEO concluded.

Despite the solid results, Betsson’s share price was very much flat in early trading at SEK217 (£16.88). However, the company’s stock is up 38% in the past 12 months.