Record-Breaking Q3 2024 for Betsson Thanks to Casino Revenue Growth

Record Financial Performance

Betsson reported a group revenue increase of 18% compared to the same period last year, reaching €280.1 million. In constant currencies and adjusted for acquisitions, revenue rose by 50.6% year-over-year. The share of revenue from locally regulated markets increased to 58%, up from 45% in 2023.

Casino operations were the main driver of revenue, accounting for 75% of the total. Betsson achieved a new all-time high for casino revenue at €209.9 million, up 22% from the previous year. The company expanded its offerings with 359 new games during the quarter—27 of which had brand exclusivity—and enhanced its live casino titles. Gross turnover for the casino segment also reached a new high of €9.42 billion.

Customer engagement reached unprecedented levels, with deposits rising by 19.8% year-over-year to €1.48 billion. Registered customers grew to 31.1 million, an increase of 5.9%, while active customers rose by 9.8% to 1,357,953.

Consistent EBIT Growth

Betsson’s EBIT increased by 17% year-over-year to €80.3 million, with a margin of 28.7%. EBIT grew by 15% to €64.5 million, maintaining a margin of 23%. Net income slightly decreased to €43.4 million, with earnings per share at €0.31. Operating cash flow at the end of the quarter was €62.5 million, and net debt stood at €-128.3 million.

“Yet again new record levels in revenue and EBIT in the third quarter,” commented 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.”

Sportsbook revenue stood at €68.3 million, up 7.8% year-over-year. Gross turnover rose by 18.7% to €1.55 billion, with a margin of 7.4%. During the quarter, new sports were launched in Betsson’s betbuilder function within the sportsbook, as well as new features to strengthen cross-selling between sports betting and casino.

In terms of B2B, licence revenue for system delivery to customers was €66.7 million, with new customers added and enhanced sportsbook trading capabilities achieved through the 2022 acquisition of KickerTech. The company also made improvements and investments in its casino and sportsbook products.

Strategic Sponsorships and Acquisitions

In July, Betsson’s operational subsidiary entered into a four-year sponsorship deal with Italian football club Inter, with the team’s shirts featuring the Betsson.sport logo on the front.

Pontus Lindwall noted: “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”, he added.

Regional Performance Highlights

• Central & Eastern Europe and Central Asia (CEECA): Revenue reached a new record of €116.3 million, up 20% year-over-year, driven by increased underlying casino activity. Operations in Croatia and Greece reported all-time revenue highs, while Estonia, Latvia, and Lithuania achieved year-over-year growth. Revenue in Georgia dropped due to lower casino activity and sportsbook margin.
• Latin America: Revenue rose by 34.2% to €69.4 million, an all-time high driven by casino. Revenue in Argentina, Peru, and Colombia increased compared to the same quarter the previous year. In Peru, an operational subsidiary obtained a local licence in July for the Inkabet brand, in addition to the licences for the Betsson and Betsafe brands acquired in June.
• Western Europe: Revenue increased by 14.2% year-over-year to €44.7 million, driven by casino. Operations in Italy reported an all-time revenue high with strong underlying growth and new records in active customers, deposits, and turnover. Sportsbook activity and revenue in the country also increased.
• Nordics: Revenue dropped by 1.8% compared to the same period the previous year to €45.3 million, primarily driven by lower casino activity.
• Rest of the World: Revenue grew by 22.9% year-over-year to €4.4 million, driven by casino operations.

Looking ahead, Pontus Lindwall expressed optimism: “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.”

He also provided an update on the company’s financial strategies: “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.”

Preparation for Brazilian Market Entry

Regarding expansion into new markets, Lindwall stated: “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”, he highlighted.