Betsson Reports Strong Q2 2024 Financial Performance
Betsson generated group revenue of €271.5 million in Q2 2024, representing a 15% year-on-year increase, with 38% of this growth being organic. The company achieved a new record in casino revenue, which rose by 16% to €191.1 million, accounting for 70% of the total revenue for the quarter. Sportsbook revenue also saw a 13% increase, reaching €78.4 million, with a sportsbook margin of 8.6%.
Revenue Growth and Financial Highlights
EBITDA increased by 15% year-on-year to €77.6 million, reflecting an EBITDA margin of 28.6%. Operating income was up by 18% to €64.1 million, and the operating margin rose slightly from 23% to 23.6%. The number of active customers grew by 25% to 1.4 million.
Geographical Breakdown
Betsson saw a significant shift in revenue from locally regulated markets, which increased from 36% in Q2 2023 to 55% in Q2 2024. This growth included contributions from Peru, where Betsson received its first local licenses for the newly regulated online market for the Betsson and Betsafe brands in June, followed by the Inkabet brand in July.
- Latin America (Latam): Revenue reached €62.6 million, a 21.8% year-on-year increase, making it Betsson’s second-largest market by revenue. Argentina and Colombia reported growth, while Peru experienced a decline due to lower activity and a reduced sportsbook margin.
- Western Europe: Revenue surged by 61.9% year-on-year to €43.7 million. Italy, in particular, performed well, with record-high revenue in Q2. Betsson launched its brand in Italy at the end of Q1 2024, complementing the established StarCasino brand. Additionally, Betsson signed a front-of-shirt sponsorship deal with Serie A club Inter Milan for its Betsson.Sport brand.
- Central & Eastern Europe and Central Asia (CEECA): Revenue grew by 11.1% year-on-year to €114 million, with record-high revenues reported in Croatia, Lithuania, and Estonia, and growth observed in Latvia and Greece.
- Nordics: Revenue decreased by 8.5% year-on-year to €47.3 million.
- Rest of the World: Revenue fell by 6.6% year-on-year to €3.9 million, primarily due to decreased activity in Nigeria.
CEO Commentary
“The second quarter of 2024 meant continued high growth and strengthened profitability with new records in both revenue and operating income for Betsson,” said Betsson AB CEO and president Pontus Lindwall.
“The high customer activity continued throughout the quarter – as expected, the UEFA EURO and Copa America contributed positively in June – resulting in strong key figures across the board.”
“I am particularly delighted to note the improved operating margin in the quarter and the highest ever operating income, given the increased proportion of revenue that was subject to local gaming taxes,” he added.
“I am pleased with what we have delivered so far this year and see good growth opportunities in the second half of the year as well.”
“We continue to invest in geographic expansion and the product offering to enable continued profitable growth and value creation for a long time to come,” Lindwall concluded.
Current Trading and Outlook
Betsson revealed that the average daily revenue in Q3 2024 up to 15 July was 20.5% higher than the average daily revenue of the full third quarter of 2023. Adjusted for currency effects and acquisitions, average daily revenue was 47.9% higher.
The operator said the UEFA EURO and Copa America football tournaments contributed to the high activity during this period.
Betsson’s robust performance in Q2 2024, alongside its strategic initiatives and market expansions, positions the company for continued growth and success in the latter half of the year.
