Betsson reports eighth consecutive record quarter as CEECA surpasses €100m in Q4 revenue

Betsson has reported yet another record quarter as revenue for the final three months of 2023 jumped 14% year on year (YoY), despite a downturn in sports betting performance, which was blamed on tough comparatives with Q4 2022 covering the World Cup in Qatar.

Group revenue at the Stockholm-listed firm landed at €251.9m (£215.3m) for Q4 2023, up from €220.6m in Q4 2022.

Coupled with record revenue, Betsson noted a 40% leap in EBITDA to €71.9m from €51.1m, with a corresponding EBITDA margin of 28.6%, up from 23.2%.

Operating income also jumped 42% from €40m to €57m, as the company championed growth in Western Europe and Central and Eastern Europe and Central Asia (CEECA).

However, Betsson’s share price has slumped by more than 10% in early trading, despite the record performance.

Despite the increases in financial KPIs, Betsson added that active customers during Q4 decreased 6% YoY to 1,345,129.

Breaking revenue down by vertical, casino revenue jumped 25.1% from €146.1m to €182.8m, meaning the division accounts for 72% of all group revenue.

During the reporting period, Betsson launched 325 new casino games, while also noting a 29.2% increase in casino gross turnover to €9.2bn.

Yet while casino continued to be impressive, Betsson’s sports betting division slightly faltered as revenue slipped 5.2% during Q4.

Revenue from the arm fell from €70.7m in Q4 2022 to €67m, while sportsbook margin dipped from 7.3% to 6.2%. Betsson said the eight-quarter rolling average margin stood at 7.6%.

Geographically, CEECA continues to be a shining light for Betsson, with revenue up 25.2% YoY to €106.8m, making it the only region to break the nine-figure barrier.

Betsson said strong underlying activity and revenue growth in casino was a core driver, and while Georgian revenue slipped, the Baltics, Balkans and Greece continued to impress.

Elsewhere, Western Europe returned to form thanks to last year’s acquisition of Belgian operator betFIRST link, as revenue rose 61.8% YoY to €41.7m.

Management also pointed to all-time high revenue in Italy as deposits and turnover also reached record levels.

However, the Nordics continues to slide for Betsson as revenue dipped 12.6% YoY to €46.4m.

Despite Denmark’s best efforts, impacts in Sweden and Finland took their toll on the division.

Looking at full-year 2023, revenue leapt 22% from €777.2m to €948.2m, while EBITDA leapt 52% from €172.4m to €262.7m.

Elsewhere, Betsson is set to distribute €88.5m to shareholders through an automatic redemption programme.

The business ended 2023 with cash and cash equivalents of €237.1m, up from €168.3m at the end of 2022.

Speaking on the group’s performance, Betsson CEO Pontus Lindwall said: “The high customer activity continued during the fourth quarter with new record levels in customer deposits and gaming turnover in both casino and sports betting.

“Once again, the group reports the highest levels ever for revenue and operating profit, marking the eighth consecutive quarter of sequential growth. The growth rate compared to the fourth quarter of the previous year should be viewed in light of the fact that the comparative period included the World Cup in football.

“I look forward to 2024 with confidence. Betsson is well positioned for continued value creation thanks to a strong financial position, proprietary technology, an attractive customer offering and – above all – our employees.

“I would like to thank our employees for all their great efforts in 2023 and also extend my gratitude to our shareholders for the trust they have shown,” he added.