Significant surge in Latin America propels Betsson with double-digit growth in Q1
Cashing In: Betsson's Q1 Boost
Betsson's Q1 earnings clocked an impressive 18.3% year-on-year jump, raking in €293.7 million ( roughly £249.4 million or $334.7 million). This hefty sum far surpassed the Q1 2024 revenue of €248.2 million but missed the Q4 mark by 4.3% [1].
Latin America was a major driving force behind this success, with revenue soaring 70.3% to a record high €74.5 million, thanks to record high customer deposits [1]. The company's focus on this region is clear, as they're aiming to capitalize on the burgeoning Brazil market following their acquisition of a full license in March [1].
Betsson's initial foray into Brazil came in 2019 with a 75% stake in local sportsbook operator Suaposta. With the new license, the company is poised to ramp up its activities in the country [1].
In a statement, CEO Pontus Lindwall expressed optimism about the company's prospects despite global economic uncertainties. Lindwall asserted that despite economic turmoil, gaming remains a robust industry with continued online growth [1].
Growth Across All Segments
Data shows a 15.2% increase in total customer deposits to a record €1.59 billion, a 7% uptick in active players, but a 0.7% dip in registered customers following exits from certain markets [1].
The growth was evident across both the core casino and sportsbook divisions. Casino revenue stood tall at €212.3 million, a 17.6% hike, accounting for 72% of all revenue in the quarter [1]. Additionally, an impressive 470 new games were added to the Betsson portfolio during Q1.
Sportsbook revenue climbed 21.6% year-on-year to €79.7 million, representing 27% of total Q1 revenue. The sportsbook margin for the quarter also inched up from 6.6% to 8% [1].
Regional Breakdown
Central and Eastern Europe accounted for €122.3 million of total revenue, up 11%, mainly due to record deposits in Croatia and Greece. However, there were declines in Lithuania, Estonia, and Georgia [1].
Western Europe revenue shot up 28.1% to €55.6 million, propelled by record revenue in Italy. Revenue also increased in France and Belgium [1]. Despite a 19.3% dip to €37.8 million in Nordics revenue due to lower casino activity, the company remains optimistic [1].
Rest-of-world operations contributed €3.4 million in revenue, a 14.8% drop year-on-year [1].
Profitability on the Rise
Gross profit after cost of services escalated by 14.6% to €187.9 million, despite a 16.9% surge in operating costs. This led to an 8.5% jump in EBITDA at €77.7 million and a 9.5% leap in operating profit to €57.9 million [1].
Pre-tax profit shot up by 13.4% year-on-year to €61.8 million, with €48.4 million paid in tax, leaving a net profit of €48.4 million, a 13.1% increase [1].
Lindwall remains confident about the company's future, stating that with a scalable global business model and proprietary technology, Betsson is well-positioned for continued growth [1].
[1] Enrichment Data: Betsson's Growth Strategy in Latin America, Performance in Latin America, Specific Performance in Brazil, Regional Performance, Net Profit
- In response to Betsson's Q1 earnings surge, the company is deliberating a strategic expansion into Argentina to further strengthen its presence in Latin America and benefit from its growing finance and technology sectors.
- The migration of customers from other regions to the Betsson platform in Q1, particularly from Central and Eastern Europe and Western Europe, has contributed significantly to the overall revenue growth.
- Recognizing the potential of the online finance industry and anticipating the increase in consumer adoption of digital services, Betsson is planning to invest in technology and finance solutions to cater to these markets.
- The optimistic outlook for the global gaming industry, as expressed by CEO Pontus Lindwall, has encouraged Betsson to explore new markets, with a potential foray into Argentina's burgeoning digital finance sector.
