Online gambling company Betsson AB has released its trading update for the second quarter of the fiscal year 2023, projecting remarkable achievements in record revenue and operating profit.
During the three-month period ending on June 30, Betsson anticipates its revenue to reach an impressive range of €235.5 million –£237.5 million / (US) $259.8- (US) $263.5 million, marking the highest ever recorded for the company in a single quarter.
Efficient, scalable business model
The estimated operating profit is expected to soar between €53.5 million –€55 million / (US) $59.3 million-(US) 61.04 million), representing another extraordinary quarterly high. Betsson attributes this impressive financial performance to increased revenue and its efficient, scalable business model.
The second quarter has witnessed sustained high levels of customer activity in both casino and sports betting, fueling robust financial development for Betsson.
Preliminary data indicates the sportsbook margin for the quarter to be approximately 8.2 percent, remaining consistent with the corresponding period last year (8.3 percent), while surpassing the rolling average for the last eight quarters (7.8 percent).
Breaking down performance across different regions, Betsson’s group revenue witnessed growth in all areas compared to the corresponding quarter of the previous year. Notably, the Nordics and Latin America each accounted for 22 percent of all revenue in the quarter, while Western Europe contributed 11 percent, Central & Eastern Europe and Central Asia (CEECA) contributed 43 percent, and the rest of the world made up 2 percent.
In terms of license revenue for system delivery to B2B customers, Betsson expects the amount to be around €64 million–€65.5 million/(US)$71 million-72.6 million) during the quarter, equivalent to approximately 27 percent of the group’s revenue.
Looking ahead, the company’s performance in Q3 has been equally promising, with average daily revenue up by an impressive 13.7 percent compared to the full third quarter of the previous year as of 9 July.
Betsson’s first quarter results 2023 (Source: SiGMA)
New casino games exclusive to Betsson brands
These strong figures come on the back of a record-setting first quarter, during which Betsson achieved an all-time high revenue of €221.9 million /(US)$246.2 million. Casino operations were the primary source of revenue in Q1, with record revenue reaching €152 million/ (US) $168.6 million, showcasing a remarkable growth of 36.9 percent. This growth was supported by the successful launch of 319 new casino games during the period, with 16 of them being exclusive to Betsson brands.
Betsson’s sportsbook revenue also demonstrated strong growth, increasing by 19.1 percent to reach €67.2 million/ US $74.5 million, with €55.7 million/US$61.8 million of this revenue generated from mobile betting. However, revenue from other products, including poker and bingo, experienced a slight decline of 1.9 percent to €2.7 million /(US) $2.9 million.
Betsson AB’s interim report for the second quarter will be published tomorrow.
Strategic partnerships and M&A
In the context of expansions and strategic partnerships, last month, Betsson announced its successful acquisition of Belgian sports betting and gaming operator betFIRST for a total sum of €120 million/(US) $130 million. The deal was finalized on July 5.
Concurrently, Betsson established a strategic partnership with French casino operator Groupe Partouche, enabling the company to expand its new Belgian offering with an online casino. While the initial focus of the partnership is on Belgium, there are future prospects for expanding into other regulated markets.
The Belgian launch, however, remains contingent upon obtaining the required licenses. Groupe Partouche currently operates land-based casinos in France and Switzerland and holds an offline casino license in Belgium, which could potentially be extended to include an online casino license, allowing Betsson to offer a full range of online casino products to its customers.
Focus on driving continued growth
Betsson has focussed on enhancing its global presence and driving continued growth. The company has emphasized its commitment to diversity and innovation in its product offerings and marketing strategies.
Betsson’s notable achievements include obtaining licenses for various markets, strategic acquisitions such as GiG’s B2C business, and launching a Sustainability Framework to address social and environmental impacts.
Betsson has also actively pursued sponsorship opportunities and received certifications for its commitment to safety and fairness. The company has demonstrated its dedication to diversity through initiatives like the Women in Betsson network and its involvement in the All-In Diversity Project.
Celebrating its 60th anniversary since it was established in 1963, Betsson Group continues to be a gaming sector leader, operating in 14 countries and covering 20 territories. The company is poised for further strategic expansion in both the B2B and B2C markets, cementing its position as a major player in the industry.
