Betsson reports all-time high Q4 revenue as German regulatory impact hits hard
Operator’s share price falls by more than 9% on 70% German market decline despite double-digit growth elsewhere
Betsson Group has reported all-time high revenue of €174.3m in Q4 following a 37% increase.
Sportsbook was the strongest performer during the period, where revenue rose 47% to €45.4m, while casino revenue increased by 33% to €126.9m.
Betsson’s sportsbook margin for Q4 met the rolling quarterly average of 7.3%.
Casino accounted for 73% of overall group revenue while sportsbook represented 26% of total. The operator’s B2B arm accounted for 17% of group revenue after a 72% annual increase.
EBITDA for the quarter came in at €40.6m, up 40% year-on-year, as operating income or EBIT reached €31.4m amid a rise of 59%.
Active customers for Q4 also leapt by 44% to 989,969, up from 686,499 in the same period of last year.
Betsson’s Nordic revenue increased by 27% to €56.7m for Q4, driven primarily by the performance of its proprietary pay and play brand Jalla Casino.
Western European revenue also rose by 19% to €45.7m, although Germany made for bleak reading. From 15 December, when limitations for online casino were implemented in the country, Betsson’s German market revenue has declined by around 70%, according to the operator.
Betsson AB CEO Pontus Lindwall said: “Under the extraordinary circumstances that still prevail, online gaming continues to demonstrate its resilience to market fluctuations and Betsson demonstrates good profitability.
“The pandemic still holds us all in a tight grip and Betsson’s focus is, as always, on safety and health, for our employees and for society in general.
“We still face challenges, but we leave 2020 behind and continue with determination to benefit from our strengths to create a strong global and diversified product portfolio of strong brands and local expertise,” he added.
Bettson AB CEO Pontus Lindwall
Significant events during the quarter saw Betsson go live with its first pure B2B sportsbook partner ibet in December after the original launch was delayed by Covid-19.
The operator plans to expand the B2B sportsbook model into the US in H2 2021 having obtained a licence in Colorado via a market-access agreement with Dostal Alley Casino.
Betsson also unveiled the Betsafe brand in Kenya in November alongside a new marketing campaign, although progress has been slow after gambling advertising was restricted due to the pandemic.
Elsewhere, the Betsson board of directors has proposed that €49.7m (GBP), which corresponds to €0.36 per share, is distributed to shareholders.
Betsson’s share price fell by more than 9% in early trading on Nasdaq Stockholm.