Betsson AB has published its fourth quarter and 2021 year-end report, declaring it to be a “record year in terms of revenue and a result that matches the record result from 2018,” despite a tough closing to Q4 trading.
The group praised its diversified business model and geographical make-up that helped ease trading difficulties within mature markets. CEO and President Pontus Lindwall also noted that the group is making “significant progress” in Latin America, adding it is “becoming even more efficient in the region”.
For Q4, Betsson recorded group revenues of $174m, down 10% year-over-year when compared to Q4 2020 results of $193m.
Casino revenues fell by 9% to $127m (Q42020: $140m), in large part due to the cessation of all Dutch business services in-line with market commands, and significant platform/product adjustments undertaken to accommodate German regulatory changes.
Sportsbook revenues also declined by 11% to $44.4m (Q42020: $50.2m). Trading against tough comparatives, the vertical was held back by unfavorable results and a below-average trading margin in October.
Per region, the group saw a drop in its Nordic markets. However, the biggest regional decline came in Western Europe where revenues halved to $22m, accounting for Dutch and German adjustments.
These challenges saw Betsson’s Q4 EBIT results decline by 34% to $23m (Q42020: $35m) with a period net income of $21m (Q42020: $30m).
CEO and President Pontus Lindwall commented: “Significant changes are taking place in how European markets are being regulated. Betsson has an efficient way to handle such changes that, for example, enabled the rapid closure of Dutch operations.
“The fourth quarter of 2021 begun in a headwind. This was partly due to an exceptionally low sportsbook margin in October following an unusually high number of instances of favorites winning, especially in football.”
For the full year, Betsson’s revenue improved by 6% to $730m (2020: $698m), gross profit also grew by 5% to $472m (2020: $449m), and EBITDA saw a 5% rise to $171m (2020: $162m).
Investors were also given an update on Latin America, where over the past year, the group has made developments in the markets of Argentina, Mexico, Chile, and Colombia.
Lindwall continued: “2021 was another year where we could see the importance of a strong global and diversified product portfolio featuring local expertise and strong brands. The year 2022 will entail continued investments both in technology and the existing product portfolio.
“During the year, significant progress was made in Latin America and the ambition is to cement and strengthen these developments in 2022. The acquisitions and investments that were made are developing according to plan and the company is becoming even more efficient in the region, not least thanks to the hub that has been established in Bogotá.”
He concluded: “Betsson’s offering was recently launched in the city of Buenos Aires and in the province of Buenos Aires – two separately regulated areas in Argentina. The plan is also to launch in Mexico during the coming year through our partnership with Big Bola Casinos.”