Pontus Lindwall, CEO at Betsson, highlighted the company’s positive progress in various areas during the quarter. He specifically praised the growth of the sportsbook division, which saw a 20% increase in gross turnover and achieved an 8.3% margin.
The organic growth of Betsson reached 13%, primarily driven by the Latin America, Central and Eastern Europe, and Central Asia markets. These regions offer significant long-term growth potential as their online gaming market share is still relatively low.
Latin America emerged as Betsson’s largest market, experiencing a substantial year-on-year revenue increase of 86.2% to €45.7m. Additionally, the revenue from Central and Eastern Europe as well as Central Asia rose by 23.4% to €61.1m, marking all-time record revenues for these regions.
However, Betsson faced challenges in the Nordics, resulting in a 5.7% revenue decline to €51.2m, attributed to the 2020 European Championship taking place in Q2 2021. Similarly, the revenue in Western Europe decreased to €24.8m due to Betsson’s withdrawal from the Dutch market to comply with regulatory measures.
Lindwall mentioned the complexities of the German market, citing extensive restrictions, high taxes, and an unclear licensing process. As a result, Betsson applied for a single online casino license in Germany through its subsidiary, Zecure Gaming Ltd.
In Q2, Betsson recorded an overall revenue increase of 7.8%. Casino revenue accounted for €122.2m, sportsbook revenue rose by 22.4% to €61.6m, and the gross profit reached €118.8m with a yearly increase of 2.6%. Operating expenses amounted to €89.6m, leading to an operating income of €29.2m, which was 22.7% lower than the previous year.
The quarter’s net income stood at €28.6m, reflecting a 14.1% yearly decrease. Cash flow from operating activities was €37.8m, down by 32.8%, largely attributed to the positive effect of VAT collection in Q2 2021. Net debt shifted to -€19.8m, positioning Betsson in a net cash position compared to Q2 2021 when net debt was €14.6m.
During the period, Betsson’s sportsbook turnover achieved an all-time high of €991.3m, representing a 20.5% increase despite the occurrence of major sporting events in Q2 2021.
Year-to-date, Betsson’s revenue reached €356.4m, a rise of 7.9% year-on-year. Gross profit amounted to €225.8m, a decrease of 3.5%, while total EBITDA incurred a loss of 11.6% at €72.7m. Total net income fell by 13.4% to €49.4m, and operating income stood at €52.8m with operating expenses totaling €173m.
In terms of customer metrics, Betsson witnessed nearly 25 million registered customers in Q2, although the number of active customers slightly dropped by 0.7% to 1.2 million compared to the previous quarter.
In June, Betsson issued €90m worth of bonds under a three-year contract with an interest rate of 6.5%, maturing in 2025.
