‘One of the largest sporting events ever’ drives Betsson through Q4

Betsson has reflected on “one of the largest sporting events ever” that it is said “contributed to new records for all possible key performance indicators in the quarter,” after publishing the group’s Q4 and full-year performance.

This saw the company record a 40 per cent revenue increase through the former to €220.6m (2021: €157.5m), which helped nudge the figure across the year to €777.2m, up 18 per cent year-on-year from €657.7m.

In addition to heaping much praise on the impact of the men’s football World Cup, Pontus Lindwall, President and CEO, also highlighted a Latin American region that “recorded new highs on most key parameters”.

Revenue from locally regulated markets where Betsson pays local betting duties increased by 31 per cent and was €75.5m (2021: €57.4m), corresponding to 34.2 per cent (2021: 36.5 per cent) of total group revenue.

Gross profit through Q4 and FY increased 48 per cent and 18 per cent to €144.8m (2021: $97.7m) and €504.4m (2021: €425.6m), respectively, while a 73 per cent quarterly net income rise to €32.7m (2021: €18.7m) pushed the FY figure forward 10 per cent to €114.7m (2021: €103.9m).

Through the quarter, EBITDA surged 68 per cent to close the period at €51.1m (2021: €30.4m), with a 12 per cent rise to €172.4m (2021: €153.7m) recorded across the full-year. Active customers through the October to December time frame increased to 1.42m (2021: 1.16m.

“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,” said Lindwall.

“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”

Adding: “The fourth quarter was dominated by the largest sports event of the year, the football World Cup. In sports terms, it was perhaps one of the best tournaments of all times, with both real surprises and favourites playing some incredibly exciting games in the knock-out stage. 

“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.” 

Casino revenue through the quarter increased 27 per cent to €146.1m (2021: €115.1m), to represent 66 per cent (2021: 73 per cent) of the group total, with mobile reaching €118.9m (2021: €91.5m) to occupy 81 per cent (2021: 79 per cent) of the firm’s igaming space.

Driven by increased activity by the aforementioned footballing showpiece, sportsbook revenue through the quarter increased 75.9 per cent to €70.7m (2021: €40.2m) to occupy 32 per cent (26 per cent) of the total.

Mobile accounted for €57.3m (2021: €31.8m), to represent 82 per cent (2021: 79 per cent) of total sports betting revenue. 

Revenue from other products, such as poker and bingo, amounted to €3.8m (2021: €2.3m), an increase of 68.5 per cent. This represents two per cent (2021: one per cent) of total revenue.

On a geographical basis, central and eastern Europe and central Asia occupied the largest slice of revenue with €85.4m, up 52.8 per cent from €55.9m one year earlier.

Croatia and Greece were each cited as demonstrating “continued positive trends,” while Georgia reported YoY growth and Latvia and Lithuania highlighted as Baltics high points.

“Even if the macroeconomic and geopolitical situation in the world remains uncertain, we remain optimistic about 2023”

The Nordics saw revenue slightly nudge ahead 2.4 per cent to €53.1m (2021: €51.9m), with Swedish declines offset by rises across Finland, Denmark and Norway.

Latin America leapt ahead 101.6 per cent to €52.3m (2021: €26m) due to World Cup activity, while western Europe increased 26.4 per cent to €25.8m (2021: €20.4m) where Italy “continued to develop well and reported all-time high levels in revenue, deposits and turnover”.

Betsson noted that “in Germany, revenue declined both compared to the corresponding period last year and the previous quarter, mainly driven by the market restrictions that have been implemented in the past years”. 

The rest of the world closed 17.3 percentage points ahead at €4m (2021: €3.4m), with this aligned to an increased stake in Nigerian gaming operator Betbonanza.

Furthermore, the online gambling group also disclosed the revenue through the first quarter, up to and including February 8, was 33.9 per cent higher than the average recorded one year earlier.

“Finally, I would also like to take the opportunity to thank our employees for all the hard work put in during the past year,” Lindwall closed.

“Together we will continue to deliver the best customer experience in the gaming industry and create long-term value for our shareholders. 

“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.”