In a period that was describes by firm’s CEO Pontus Lindwall, as "Betsson’s best quarter ever, driven by both sports and casino," the company announced records in a variety of measures during Q3, including record-high revenue of €200.3m, up 17.8% year-on-year.
B2B revenue was €45.1m, representing 22% of Betsson revenue. This was up from €28.6m a year earlier, meaning B2B took up a larger share of overall revenue than before.
Within B2C, locally regulated markets brought in €71.5m, up from €54.7m and also representing a larger share of revenue than before. Casino revenue grew to €135.4m, which was up by 8.2% year-on-year.
Sportsbook revenue grew more quickly, by 45.0% to €61.9m. This came on turnover of €1.06bn, including €733.0m from in-play betting.
Geographically, the trend of rapid quarter-on-quarter growth for Betsson in Latin America was halted. The business made €38.0m from the region, which was up 59.0% year-on-year but down from €45.7m in Q2. Latin America was also the only market in which sports betting brought in more revenue than casino.
CEO Pontus Lindwall commented: “We saw a continued positive development during the third quarter with high growth and profitability for the Group as a whole. Betsson reported new records for revenue and operating profit, driven by both sports betting and casino. The organic growth was 35 percent compared to the corresponding quarter last year, again generated mainly by the regions Latin America and Central and Eastern Europe and Central Asia (CEECA).”
“Another growth factor in the quarter was high sportsbook turnover, partly because of the early start of the European football leagues in August, due to the upcoming FIFA World Cup in November-December. I am particularly pleased with the high growth overall given the fact that we have not had any revenue from the Netherlands, where our license applications are still being processed."
The sportsbook continues to develop into a more important part of the total business for Betsson thanks to investments in the past years to strengthen the product and to expand geographically to markets with structural growth potential. The gross turnover in the sportsbook increased by 29 percent and the margin was 8.3 percent in the quarter.
Betsson continues to deliver on the growth strategy, which is based on geographic expansion and diversification, and in August an online casino offering was launched on the regulated market in Mexico. This is a soft launch so far, but marketing will increase during the fourth quarter and especially during 2023 and we see considerable potential for this market in the long term given the size of the economy, the population, and the low level of online gaming penetration in the country.
Betsson’s business has historically been relatively unaffected by the general business cycle and so far, we have not seen any signs of weaker demand due to the general macroeconomic situation. We are excited as we look forward to the rest of the fourth quarter and the World Cup in football, which has good chances of becoming the biggest sports event ever for Betsson
Source: GMB
