Betsson has published its financial results for the third quarter of 2022, reporting its “best quarter ever, driven by both sports and casino”.
CEO Pontus Lindwall stated the group looks forward to the close of year which will feature World Cup trading that has the potential to be “the biggest sports event ever for Betsson”.
In its Q3 report, Betsson declared a group revenue of $201m, an 18% improvement year-over-year (Q4 2021: $170.6m).
Casino revenue rose by 8% to $135.9m (2021: $125.5m), while sportsbook revenue grew by 45% to $62.1m (2021: $42.8m) with its margin at 8.3% (2021: 7.8%). Other products (poker, bingo, and others) generated $3m in Q3 revenue, a 40.9% gain YoY (2021: $2.2m).
Mobile casino revenue stood at $109.7m (2021: $103.1m) accounting for 81% of total unit revenues for the quarter (2021: 82%), while mobile sportsbook revenue was $47.6m (2021: $34.7m) and 77% of the total sportsbook revenue (2021: 81%).
Betsson’s active customers have increased YoY too by 7% to 1,056,400 (2021: 986,429).
The group’s EBITDA for Q3 came in at $48.8m, 19% higher than the previous year (2021: $41.1m, while the EBITDA margin stood at 24.3% (2021: 24.1%). Operating income (EBIT) was $38.5m, a 21% uptick (2021: $31.8m), while EBIT margin was 19.2% (2021: 18.7%).
Net income came in at $32.7m corresponding to EUR 0.24 per share (2021: $28.2m, 0.21 per share). Operating cash flow was $38.6m (2021: $41.5m), while net debt was -$54.8m (2021: -$6.4m).
Commenting on the results, CEO Lindwall praised Betsson’s organic growth in the regions of Latin America and Central and Eastern Europe and Central Asia (CEECA), as well as a high sportsbook turnover due to the early start of the European leagues ahead of the World Cup in November-December.
He said: “We saw a continued positive development during the third quarter with high growth and profitability for the Group as a whole. Betsson reported new records for revenue and operating profit, driven by both sports betting and casino.”
Betsson’s Latin American operations continue to grow
Per region, Betsson’s Latin American operations generated $38.9m in Q3 revenue, but it was the group’s operations in CEECA that performed the best during the quarter with $79m, followed by the Nordics ($54m), Western Europe ($25m), and the Rest of the World ($3.9m).
Latin America’s $38.9m in revenue was an increase of 58.9% YoY (2021: $24.5m) with all countries in the region declaring YoY revenue growth thanks to “a strong underlying activity where deposits, active customers, turnover in both casino and sportsbook grew”. However, revenue declined compared to the previous quarter due to a lower sportsbook margin.
During Q3, the Betsson brand with its casino, live casino, and sports betting offering were launched in Mexico through a partnership with land-based operator Big Bola Casinos. The group also increased its ownership in Colombian operator Colbet from 70% to 88%.
Lindwall added: “Betsson continues to deliver on the growth strategy, which is based on geographic expansion and diversification, and in August an online casino offering was launched on the regulated market in Mexico.
“This is a soft launch so far, but marketing will increase during the fourth quarter and especially during 2023 and we see considerable potential for this market in the long term given the size of the economy, the population, and the low level of online gaming penetration in the country.”
In North America, GWN Limited, a Betsson operational subsidiary, was issued with an operator registration by the Alcohol and Gaming Commission of Ontario (AGCO) in Canada.
The regulator also issued a gaming related supplier registration to Betsson Platform Solutions Limited, and the group expects to obtain signed agreements with iGaming Ontario (iGO) soon.
In the US, another Betsson subsidiary, Betsson US Corp, is in the process of renewing its internet sports betting operator license in the state of Colorado.
Licensed for gaming in 19 jurisdictions, Lindwall noted that Betsson is looking forward to what Q4 can generate thanks to the World Cup near the end of the year.
Lindwall concluded: “Betsson’s business has historically been relatively unaffected by the general business cycle and so far, we have not seen any signs of weaker demand due to the general macroeconomic situation.
“We are excited as we look forward to the rest of the fourth quarter and the World Cup in football, which has good chances of becoming the biggest sports event ever for Betsson.”