In Q3 2023, Betsson achieved yet another record-breaking quarter, with a remarkable 19 percent increase in revenue. This outstanding performance was mainly driven by robust growth in all major regions, except for the Nordics.
Year-on-year increase
During this quarter, the company generated €237.6 million in revenue, marking a 19 percent year-on-year increase, with 39 percent of this growth being organic. The EBITDA also saw a substantial boost, reaching €68.9 million, which represents a notable 42 percent year-on-year increase. This resulted in an EBITDA margin of 29 percent, significantly up from the 24.3 percent margin observed in the previous year.
Source: SiGMA
Operating profit stood at €56 million, demonstrating a remarkable 46 percent increase compared to Q3 2022. The EBIT margin reached 23.6 percent, an impressive rise from 19.2 percent in the previous year.
Betsson proudly announced that this quarter marked the highest-ever revenue and EBIT figures for the group in a single quarter. Q3 also marked the seventh consecutive quarter of sequential growth.
Breaking down the revenue further, casino revenue witnessed a 27 percent year-on-year increase, reaching €172.1 million, while sportsbook revenue showed a 2 percent growth, totalling €63.3 million. However, it’s worth noting that the sportsbook margin slightly decreased, standing at 7.3 percent, down from 8.3 percent in Q3 2022.
Rise in customer base
Additionally, Betsson expanded its active customer base by a significant 17%, reaching 1.2 million customers compared to the same period in the previous year. Customer deposits also surged, showing a remarkable 31 percent year-on-year increase.
Geographically, the performance varied:
In the Nordics, Betsson’s revenue declined by 14.3 percent to €46.1 million. This decline was primarily driven by decreases in Sweden and Finland, although Denmark saw growth due to the introduction of the Betsson brand.
Western Europe reported a substantial increase of 56.9 percent to €39.2 million, primarily due to growth in Italy and the acquisition of betFIRST in Belgium. However, revenue in Germany declined due to market restrictions.
Central & Eastern Europe and Central Asia (CEECA) experienced a 23 percent year-on-year increase, reaching €97 million. Betsson attributed this growth to strong underlying activity and growth in the casino product, particularly in Croatia and Greece.
In Latam, Betsson reported a 33.2 percent year-on-year increase to €51.7 million, with positive contributions from Argentina and Colombia, while Peru’s revenue decreased.
Revenue from the Rest of the World segment declined by 6.5 percent to €3.6 million compared to the same period last year. This decline was primarily due to lower sportsbook margins in Nigeria and reduced activity in Canada.
CEO comments
Betsson AB CEO, Pontus Lindwall, emphasized that the company achieved several milestones during the quarter, including the integration of betFIRST in Belgium, entry into the locally regulated market in Serbia, and obtaining a French sports betting license with plans for a go-live date in Q4 2023.
Lindwall stated, “France is an important gaming market in Europe with substantial long-term potential for online gaming, and we are taking the first step to offer French players a first-class experience in sports betting. I look forward with confidence to the final sprint of the year. Geographical diversification, a solid balance sheet, and strong cash flows create good conditions for continued investments in profitable growth to deliver long-term value creation for our shareholders.”
Betsson also published that the average daily revenue for the early part of Q4 2023 and this is showing a significant increase, with an 11.9 percent rise compared to the full fourth quarter of 2022.
Betsson AB (BETS-B.ST) is trading at SEK107.80, with a change of + 3.85%.
