Casino growth fuelled a positive start to 2024 for Betsson as revenue reached €248.2m, a 12 per cent spike on the same period last year.
Overall the firm’s casino output grew by 19 per cent to €180.5m, driven by an elevation of customer activity and a 15 per cent increase in active customers.
Furthermore, the group also benefited from the launch of 306 games as it moved to significantly enrich its casino output in a myriad of global markets.
Summing up the period for Betsson, CEO Pontus Lindwall, stated: “For Betsson the first quarter of 2024 was characterised by a continued positive development with high customer activity, good growth and strengthened profitability, as well as new growth-oriented initiatives.
“The high customer activity drove strong growth in gaming turnover for both casino and sports betting, with year-over-year increases of 14 and 25 percent, respectively. Casino revenue increased by 19 percent year over year.
“The sportsbook margin amounted to 6.6 (8.0) percent, which was lower than the average margin for the past two years and meant that the high activity and increased turnover in sports betting was not fully reflected in revenue for the quarter. The lower sportsbook margin particularly impacted revenue in Latin America.”
The firm’s activity in Argentina was hindered by a turbulent political backdrop as Lindwall stated that a devaluation of the Argentine peso of more than 50 percent in December served to have a negative effect on reported revenue for the group in the first quarter.
There were challenges within Latin America, however, where operations were hindered by slowness within sportsbook growth.
That being said, the firm is eyeing a golden opportunity in the Summer as the Coppa America and the international European Championship both take center stage and provide a chance for elevation of its sportsbook offering.
Nonetheless, Western Europe provided positivity for the group as it enjoyed a 58 per cent revenue increase as igaming engagement in Italy was bolstered by the stability of the StarCasino brand, which has a strong footing in the region.
Growth was also experienced in Belgium as it served to offset a challenging period in Germany and contribute to an overall increase in revenue in Western Europe.
Lindwall added: “Betsson’s ambition is to generate stable earnings growth in the long run. The strategy to achieve this is based on geographic diversification and growth investments within existing markets, new markets, B2B and M&A.
“Within existing markets, it can be mentioned that the Betsson brand was introduced on the Italian market in March, at the same time as a collaboration was started with the former superstar of Italian football, Francesco Totti. Italy remains an important market with great potential for Betsson.
“In addition, Betsson went live in Cordoba, Argentina during the quarter, which means that the Group now offers games under local gaming licenses in three Argentine provinces. In new markets, a new online casino offering was launched in Belgium through the acquired company betFIRST, based on the category A+ license.
“The license enables a complete online casino offering including slots, table games and live casino. B2B continues to be an important strategic area where previous years’ investments continue to bear fruit and continued to perform strongly during the quarter.”
M&A continues to be a vital tool in opening new avenues of engagement for the firm, with it securing deals to acquire www.goldruncasino.nl and www.goldruncasino.com, gaming operators licensed in the Netherlands.
The transaction is subject to an approval from the Dutch gambling authority before integration can begin.
