Betsson Q3 2024 results revealed yet another record operational period, with casino revenue leading the expansion, rising by over 20% year over year.
With deposits rising by nearly 20%, customer activity also hit a new all-time high for the operator, and operating income (EBIT) saw sequential growth for the eleventh straight quarter.
New highs for EBIT and revenue
Betsson announced its Q3 results, showing an 18% growth in group revenue to €280.1m (Q3 2023: €237.6m) over the same period last year. Revenue increased 50.6% year over year when adjusted for acquisitions and in constant currency. Locally controlled markets now account for 58% of total income (€163m), up from €106m/45% in 2023.
In addition to enhancements and investments in casino and sportsbook products, the 2022 acquisition of KickerTech resulted in the addition of new clients and the expansion of sportsbook trading capabilities, bringing the license income for system supply to B2B customers to €66.7m (2023: €55.9m).
The quarter saw a 19.8% YoY increase in customer activity, and deposits hit an all-time high of €1.48 billion (2023: €1.24 billion). Active consumers climbed by 9.8% to 1,357,953 (2023: 1,237,238), while registered customers increased by 5.9% to 31.1 million (2023: 29.4 million).
Betsson’s EBITDA increased 17% year over year to €80.3 million (2023: €68.9 million), with a 28.7% (2023: 29%) margin. EBIT grew by 15% to €64.5 million (2023: €56 million), with a 23% margin (2023: 23.6%).
Earnings per share were €0.31 (2023: €0.35), while net income decreased little to €43.4m (2023: €46.2m). At the conclusion of the quarter, operating cash flow was €62.5 million (2023: €44.9 million), while net debt was €-128.3 million (2023: €-65.5 million).
“Yet again new record levels in revenue and EBIT in the third quarter,” mentioned Pontus Lindwall, CEO of Betsson.
“The high customer activity continued during the third quarter with new record levels in customer deposits and gaming turnover. Yet again Betsson reports quarterly records in revenue and EBIT, which means the eleventh quarter in a row with sequential growth on the EBIT level.”
See also:
- Brazil proposes an online betting ban due to mental health and financial risks
- SOFTSWISS announces Q3 2024 results for their Game Aggregator and Jackpot Aggregator
- ClickOut Media prepares for’monstrous’ edition of iGB Affiliate Barcelona, as registrations reveal an 86.7 percent boost
Casino fuels Q3 growth
In comparison to the previous year, all of the operator’s verticals experienced increase in Q3. Revenue from casinos accounted for 75% of revenue share (2023: 74%), followed by revenue from sportsbooks (24%; 2023: 27%) and other goods (poker, bingo, and other) at 1% (2023: 1%).
With 359 new games added during the quarter, 27 of which were brand-exclusive, and its live casino titles, Betsson recorded a new all-time high for casino revenue in Q3 of €209.9m, up 22% YoY (2023: €172.1m). Additionally, the vertical’s gross turnover hit a record high of €9.42 billion (2023: €8.29 billion).
Revenue for the sportsbook was €68.3 million, up 7.8% year over year (2023: €63.3 million). While the margin was 7.4% (2023: 7.3%), gross turnover increased 18.7% to €1.55 billion (2023: €1.31 billion). New sports and tools to improve cross-selling between sports betting and casinos were introduced throughout the quarter in the sportsbook’s betbuilder function.
The Italian football team Inter and Betsson’s operating subsidiary signed a four-year sponsorship agreement in July, with the Betsson.sport logo appearing on the front of the squad’s uniforms.
Lindwall commented: “A lot of preparatory work was done before this summer’s major football tournaments, so I am particularly pleased to see the 100% uptime for the sportsbook during all the matches in both the Euros and Copa America.
In August, an agreement was entered with the French gaming operator FDJ about the acquisition of Sporting Solution, which for many years has been an important supplier of trading, pricing, and sports betting risk-management services to Betsson’s sportsbook.
The acquisition will primarily contribute with faster and more flexible odds setting, stronger risk management and enhanced scalability for the sportsbook product for both B2C and B2B.”
Other products revenue reached €2m (2023: €2.1m).
Reduced casino activity has an effect on the Nordics
With the exception of the Nordics, Betsson recorded growth in every area. With a revenue share of 42%, Central & Eastern Europe and Central Asia (CEECA) activities were in the lead, followed by Latin America (25%), the Nordic and Western European regions (16%), and the Rest of the World (ROW) (1%).
Due mostly to a decline in casino activity, Nordics’ income fell 1.8% to €45.3m (2023: €46.1m) from the same time the year before.
Increased underlying casino activity drove CEECA revenue to a new record of €116.3m, up 20% YoY (2023: €97m). While Estonia, Latvia, and Lithuania saw year-over-year improvement in sales, operations in Croatia and Greece reported all-time highs. Georgia’s revenue declined as a result of a decline in both the sportsbook margin and casino activity.
Revenue in Latin America reached an all-time high of €69.4 million (2023: €51.7 million), a 34.2% increase, thanks to the casino. Compared to the same quarter last year, revenue in Argentina, Peru, and Colombia grew. In addition to the licenses for the Betsson and Betsafe brands that were secured in June, an operational subsidiary in Peru also obtained a local license for the Inkabet brand in July.
The casino was the main driver of Western Europe’s 14.2% YoY growth in revenue to €44.7m (2023: €39.2m). With robust underlying growth and new records in active customers, deposits, and turnover, operations in Italy reported an all-time revenue high. The nation’s sportsbook revenue and activity also rose.
Although Betsson pointed out that a new online casino product was introduced in the nation back in January, Belgium’s income increased in comparison to the same quarter previous year as well because of the casino. During the quarter, the operator also raised its stake from 49% to 67% in Betsson France, its French joint venture.
ROW revenue increased by 22.9% YoY to €4.4m (2023: €3.6m), driven by casino.
Q4 and the future
In addition to giving an update on the company’s 2022/2025 bond and its thoughts on Brazil in advance of its market introduction at the start of next year, Lindwall stated that Q4 is already off to a good start in terms of daily revenue.
The CEO said: “Our business continues to generate strong cashflows and the balance sheet is solid. In September, we refinanced the 2022/2025 bond with a new three-year senior unsecured bond of EUR 100 million at a floating rate of 325 basis points above EURIBOR, which is half the credit spread compared to the refinanced bond.
After several years of delay, Brazil will introduce a new gaming regulation in January 2025 and during the past quarter we submitted our application for a local licence. The potential market in Brazil is large while competition is expected to be tough with many operators willing to invest large amounts in marketing.
As always for Betsson, we will carefully evaluate and compare the likely returns on marketing in Brazil with other countries in order to find the right mix and allocation of investments between our markets. The focus on efficient capital allocation is and has always been an important part of our strategy to create shareholder value.
The fourth quarter is off to a positive start with 14% higher daily revenue than the average for the full fourth quarter last year. Hence there is reason to feel confidence about the last quarter of the year, which is usually also the seasonally strongest quarter for customer activity.”
Join us on all our social channels and groups
Gameongazette is present on:
