For Betsson the first quarter of 2024 was characterized by continued positive development with high customer activity, good growth and increased profitability, as well as new growth-oriented initiatives. Revenue increased 12 percent year-over-year and operating income (EBIT) increased 35 percent to a new record level, while operating margin strengthened to 23,3 percent.
After the new president in Argentina took office, a devaluation of the Argentine peso of more than 50% was carried out in December, which had a negative effect on the revenues reported for the Group in the first quarter. Revenue increased 25% compared to the corresponding quarter of the previous year.
High customer activity has driven strong gaming revenue growth for both casino betting and sports betting, with year-over-year increases of 14 and 25 percent, respectively. Casino revenue increased 19 percent year over year. The sports betting margin amounted to 6,6 (8,0) percent, which was lower than the average margin for the last two years and meant that the high activity and increased turnover in sports betting did not were fully reflected in revenues for the quarter. The lower sports betting margin had a particular impact on revenues in Latin America.
“Betsson's ambition is to generate stable earnings growth in the long term. The strategy to achieve this is based on geographic diversification and growth investments in existing markets, new markets, B2B and AM. Within the existing markets it can be said that the Betsson brand was introduced on the Italian market in March, at the same time as the start of a collaboration with the former Italian football superstar, Francesco Totti. Italy remains an important market with great potential for Betsson. Furthermore, Betsson has gone online in Cordoba, Argentina, meaning the Group now offers games with local gaming licenses in three Argentine provinces. In new markets, a new online casino offering has been launched in Belgium through the acquired company betFIRST, based on the category A+ license. The license allows for a comprehensive online casino offering including slots, table games and live casinos. B2B continues to be an important strategic area where investments from previous years continue to pay off and continued to perform strongly during the quarter. In terms of M&A, a licensed gaming operator in the Netherlands offering casino games via the websites www.goldruncasino.nl and www.goldruncasino.com, and a gaming studio developing casino games, were acquired in February . The transaction is subject to approval from the Dutch Gambling Authority before integration work can begin.
Sustainability is an important part of Betsson's strategy and for the second year running Betsson sponsored the Consumer Protection Zone at the ICE gaming fair in London. This part of the fair aims to increase awareness of responsible gaming and all proceeds from this part go to organizations working with responsible gaming.
After a positive start to the year, we now look forward to following the final rounds of the European football leagues and cups, before UEFA Euro 2024 and Copa America in June and July. There is football fever out there and within the entire organization a number of activities are already underway to ensure that Betsson is able to deliver a powerful player offering for new and existing customers during these major championships. See you this summer!”, comments Betsson CEO Pontus Lindwall.
The key points of the 1st quarter 2024 report:
- The Group's revenues amounted to 248,2 (221,9) million euros, an increase of 12%. 25% organic increase.
- Casino revenue increased 19%. Sportsbook revenue decreased 3% and sports betting margin was 6,6% (8,0%).
- EBITDA amounted to 71,6 (54,3 million euros, an increase of 32%. The EBITDA margin was 28,8% (24,5%).
- The operating result (EBIT) amounted to 57,9 (43,0) million euros, up by 35%. The EBIT margin was 23,3% (19,4%).
- Net profit amounted to EUR 42,8 (36,6) million, equivalent to EUR 0,30 (0,28) per share.
- Operating cash flow was EUR 50,0 (48,8) million.
- Net debt was -68,1 euros (-104,5) million euros.
- Active customers increased by 15% to 1.281,267 (1.115.641).
