Betsson reports record quarter as earnings soar 42% on geographic spread

Betsson has announced a seventh consecutive quarter of growth in revenue and earnings as Q3 2023 represented another record trading period for the company.

The Swedish firm posted a 19% year-on-year (YoY) increase in revenue to €237.6m (£207.3m), up from Q3 2022’s return of €200.3m.

Operating profit, or EBIT, surged 42% YoY from €38.4m to €56m, with the corresponding EBIT margin jumping from 19.2% to 23.6%.

EBITDA also increased, improving by 42% YoY to reach €68.9m compared to Q3 2022’s €48.6m.

Betsson pointed to significant growth in its casino division, as well as increases across its active customers and deposits, as key drivers for the record performance.

Casino accounted for 72% of group revenue, with a 27.2% YoY increase from €135.4m to €172.1m.

Betsson highlighted the launch of 327 new casino games during the quarter and “strong, regionally customised offerings” leading to improved customer experience.

Sports betting revenue remained relatively flat YoY, with a 2.4% uptick from €61.9m to €63.3m. Sports betting margin slipped from 8.3% to 7.3%, matching the Q3 trend from other operators citing poor sporting results.

Geographically, Central and Eastern Europe and Central Asia (CEECA) continued to be the crown jewel for the company, with the region accounting for 41% of total revenue.

Strong growth in Croatia, Greece, Georgia, Latvia and Estonia drove revenue up 23% from €78.8m to €97m.

Betsson also launched its Rizk brand in Serbia in September, and the company hopes the rollout will further boost its revenue streams in the region.

Elsewhere, Latam revenue jumped 33.2% from €38.8m to €51.7m. Gains in Argentina and Colombia offset a downturn in Peru caused by lower casino activity and a lower sports betting margin.

The largest regional increase was found in Western Europe, with revenue rocketing 56.9% from €25m to €39.2m, with the acquisition of Belgian operator betFIRST driving the division.

Despite the growth in those three regions, revenue slipped 14.3% in the Nordics and 6.5% in the rest of the world.

Elsewhere, active customers for the quarter shot up by 17.1% to 1,237,238, with customer deposits rising 31.2% to €1.2bn.

Speaking on the results, Betsson CEO Pontus Lindwall said geographic expansion had been key to the success seen in the three months to the end of September.

The CEO said: “The geographical expansion continues and several new milestones were passed during the quarter.

“BetFIRST in Belgium was included in the Betsson Group, a launch took place on the locally regulated market in Serbia and a local licence for sports betting was obtained in France, where go-live is expected in the fourth quarter. France is an important gaming market in Europe with large long-term potential for online gaming.

“I look forward with confidence to the final sprint of the year. Geographical diversification, a solid balance sheet and strong cash flows create good conditions for continued investments in profitable growth to deliver long-term value creation for our shareholders,” he concluded.

The markets reacted positively to the results as Betsson shares rose more than 5% to SEK109.40 (£8.08) in early trading. The company’s stock is up more than 28% in 2023.