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Betsson AB published its interim report covering the first quarter 2023.
Highlights
- The Group’s revenue increased by 30% to EUR 221.9 (170.2). Increase of 38% on an organic basis.
- Casino revenue increased 37%. Sportsbook revenue increased 19%, and the margin on sportsbooks was 8.0% (8.3%).
- EBITDA grew by 62% to EUR 54.3 (33,4) millions. EBITDA margin is 24.5% (19.6%).
- Operating income (EBIT), which is a measure of operating profit, was EUR 43.0 ($23.6) million. This represents an 82% increase. EBIT margin was 19,4% (13,9%).
- The net income was EUR 36,6 (20.9) millions, which is equivalent to EUR 0.28 (0.16) per share.
- Operating cash flow was EUR 49,8 (26,9) million.
- The net debt for the year was EUR -104.5(-16.9) millions.
- The number of active customers has decreased by 11%, to 1,115 641, (1,256 449).
Comments from the CEO
“Record strong start in 2023 with positive developments both in sports betting and casinos”
Since 1960, we have offered entertainment through casino games and sports betting. Betsson believes that a long-term view is key to how business should be managed and how shareholder value can be created. Over the last few years, Betsson has made investments to increase its geographical reach to new markets as well as to improve the product offerings and competitiveness. These efforts are paying off.
Betsson has started 2023 off with another great quarter. The company is again setting records for revenue and earnings, despite the fact that historically, first quarters are usually quieter than other quarters. The revenue grew organically by 38%, a result of sustained positive development in sports betting and the casino. Revenue increased across all regions, except the Nordics.
Betsson’s new business in Argentina has been doing well. Revenues increased significantly during the first quarter and Betsson is continuing to invest in marketing in order to increase brand awareness on this regulated market. A third license was acquired in February in Cordoba province, where an upcoming launch is planned. The revenue from B2B is increasing, a sign that the company’s investments in product and technology development as well M&A over the last few years are paying off. Betsson’s scalable model allows these investments to be absorbed over time with a higher or maintained profitability. EBIT margin increased to 19.4 (13.9%) percent in the third quarter.
We are proud of Betsson’s continued involvement in sports, together with fans, clubs and customers. During the first quarter of 2019, Betsson sponsored the ATP 250 Chile Open tennis tournament, which was held in Santiago, Chile, in February and early March. The tournament was won by local player Nicolas Jarry. This is his second ATP title after winning the Swedish Open at Bastad, Chile in 2019.
Responsible gaming is a key part of Betsson’s strategy, and it’s a requirement for the long-term success of the gaming operator. In order to increase transparency and raise player awareness of risky gambling and how proactive contact can change behaviour, Betsson began reporting KPIs on the Swedish market in the first quarter.
In conclusion, Betsson has had a good start to the year with a continued growth in profits and strong cash flow. With a strong financial position, we can continue to invest in sustainable growth for our shareholders and create value.
