Betsson reports “best year in business”
Betsson recorded back-to-back record-breaking financial quarters in 2022.
Sweden.- Stockholm-listed Betsson AB has reported corporate revenue of €777m for 2022, a rise of 18 per cent from 2021. The operator broke its own records for every quarter, with Q4 revenue up 40 per cent at €220m thanks to the World Cup 2022, which it described as its “largest sports event ever”.
B2C casino revenue in Q4 hit €146m, up from €115m in the same quarter of 2021 despite enhanced compliance measures in Western European and Nordic markets. Full-year B2C casino revenue was €514m, up 8 per cent.
Sports betting generated €71m in Q4, up 75 per cent. Overall revenue for the quarter was €220.6m, up 40 per cent, EBITDA hit €51.4m, up 68, and gross profit €144.8, up 48 per cent. Active customer numbers rose from 1.16 million to 1.42 million.
Full-year profits were up by 18 per cent at €504.4m (€425.6m) and EBITDA reached €172.4m. In full-year results, there was a change in Betsson’s strongest geographic areas from the Nordics. Central and Eastern Europe and Central Asia (CEECA) generated the highest B2C online casino revenue (€197m), while LatAm was strongest in sports betting, generating €115m. Net income was €115m, up 10 per cent.
Group CEO Pontus Lindwall said: “As expected, for Betsson the World Cup turned out to be the largest sports event ever and contributed to new records for all possible key performance indicators in the quarter, such as revenues (despite a significantly lower sportsbook margin than in the previous quarter), EBIT, sportsbook turnover, casino turnover, active customers and customer deposits.
“We can look back at the best year ever for Betsson with strong growth and profitability, driven by disciplined capital allocation, geographical diversification and investments in new markets, as well as continuous strengthening of the tech platform and product offering.”
Lindwall stressed the importance of Latin American markets and said Betsson intended to make further strategic investments in the region due to the strong football presence.
“Geographically, once again growth was driven by the regions Latin America and CEECA. Above all, Latin America recorded new highs on most key parameters,” he said.
“Our strategic investments in the region continue at full speed – in Peru, the naming rights sponsorship for the highest football league, Liga 1 Betsson, was extended another four years, and in Chile, a new naming rights deal was agreed with the highest football league, which will be named Campeonato Betsson. Both leagues kicked off at the end of January, and it is gratifying to see the continued engagement in football together with clubs, fans and customers.”
Betsson objectives for 2023
Betsson has set out three core objectives for 2023. It will aim for further growth in existing markets, expand into new markets and enhance its B2B offering, particularly its proprietary sportsbook.
Lindwall said: “Even if the macroeconomic and geopolitical situation in the world remains uncertain, we remain optimistic about 2023 thanks to our geographical diversification, focus on profitable growth, strong balance sheet and our sustainable gaming solutions.”
Betsson began the year by closing its online gaming brand Casino Winner. The site previously targeted the Dutch market but has been blocking customers in the Netherlands since the launch of the country’s regulated online gambling market in October 2021.
The site was operated through Betsson’s MGA-licensed Corona Ltd, which also operates Loyal Casino. The two sites, which Betsson acquired in 2014, were previously known as Kroon Casino and Oranje Casino. Betsson bought them from three entrepreneurs for €130m expecting the re-regulation of gaming in the Netherlands, but it took seven years for regulation to enter force.
Meanwhile, Betsson will acquire the sportsbook supplier KickerTech for €14m. The deal will expand the company’s B2B operations. It said more B2B-focused acquisitions could be forthcoming.
