Casino growth boosts Betsson’s revenue and profits in Q1
Betsson reported a year-over-year increase in revenue and profits for the first quarter of its fiscal year, helped by growth in its core casino business.
Revenue for the three months ended March 31 was SEK 1.59 billion (£ 138.0 million / € 157.6 million / $ 191.2 million), up 12 , 3% compared to SEK 1.42 billion in the corresponding period last year.
Casino revenue for the quarter was SEK 1.12 billion, up 16.1% from the first quarter of 2020. A portion of SEK 868.2 million was generated through its mobile casino.
Betsson saw the benefit of expanding its content portfolio with 180 new games, with the operator now offering more than 5,100 titles from over 100 vendors. Betsson also completed the integration of Playtech’s live casino products, while the operator said it processed nearly four billion games during the period, up 24.0% from the previous year. ‘last year.
Revenue from Betsson’s sports betting business edged up 2.4% year-on-year to SEK 394.0 million, with SEK 320.9 million coming from its betting platform mobile sportspeople.
The operator said his bookmaker was helped by the number of major sporting events in the first quarter, including the knockout phase of the UEFA Champions League in Europe football, as well as the regular seasons of the National Basketball Association and the National Hockey League in the United States.
As for other products including poker and bingo, revenue increased 15.1% to SEK 21.3 million.
Regarding geographic performance, Central and Eastern Europe and Central Asia (CEEC) was the main source of revenue for the operator, with SEK 541.1 million in turnover in the first quarter, up 27.5% year over year.
The revenues of the Nordic countries edged up 0.9% to SEK 487.0 million, while the revenues of Western Europe fell 5.6% to SEK 383.6 million. Betsson experienced the greatest growth within its Rest of the World (RoW) operations, with revenue up 74.8% to SEK 181.1 million, driven by operations in Chile and Peru.
Betsson also noted a significant increase in the number of active customers in the first quarter, rising 39.2% year-over-year to 948,109.
“In several markets, such as Italy, the Baltic States, Peru and Chile, we continue to generate strong growth and good profitability,” said Betsson Chairman and CEO Pontus Lindwall. “This is very encouraging, however, we are not entirely satisfied as we have experienced difficulties in a few other markets for various reasons.
“The revenues of the German market have decreased considerably, due to the restrictions introduced and the fact that we have closed several brands in this context. In Norway, it is still difficult to find effective payment solutions, but with its own proprietary payment platform, Betsson is handling the situation.
“Operations in the Netherlands are continuing as before, pending the start of the licensing process for foreign operators. We look forward to continued favorable development in the CEECA and ROW regions, thanks to successful brand launches and continuous improvement of the product offering. “
On the expense side, service costs reached SEK 556.9 million, leaving gross profit of SEK 1.04 billion up 9.8% from last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 2.5% to SEK 361.7 million.
Operating expenses increased 11.2% to SEK 759.8 million, with higher costs in all areas except depreciation and amortization, which fell 7.3% to SEK 85.6 million. This left an operating profit of SEK 276.1 million, up 6.0% year-on-year.
After recording SEK 12.8 million in financial expenses, Betsson achieved a pre-tax profit of SEK 263.3 million, an increase of 8.9% over last year. The operator paid SEK 23.2 million in taxes, leaving a net profit of SEK 240.1 million, up 4.6% from the first quarter of 2020.
“With a large and diverse product portfolio with many brands in multiple markets, Betsson can deliver results to continue to create growth,” said Lindwall.
Lindwall also referred to Betsson’s growth plans in the US, saying work is underway to tailor his bookmaker to the market for a potential launch in Colorado, as well as rolling out a B2B offering of his. bookmaker.
“The work of adapting and making the bookmaker attractive to the US market has intensified further,” said Lindwall. “Betsson’s bookmaker will be integrated into the PAM of the new American entity of TG Lab before its launch in Colorado.”