Betsson matched its full-year revenue record in 2021, despite the operator experiencing year-on-year declines in a “challenging” fourth quarter.
Revenue for the 12 months to 31 December 2021 reached €640.5m, a 4.4% year-on-year increase from 2020 thanks to the group expansion into new markets, strategic acquisitions, new product launches, and its ability to adapt to regulatory headwinds, the operator said in the report.
The group praised its diversified business model and geographical make-up that helped ease trading difficulties within mature markets. CEO and President Pontus Lindwall also noted that the group is making “significant progress” in Latin America, adding it is “becoming even more efficient in the region.”
“During the year, significant progress was made in Latin America and the ambition is to cement and strengthen these developments in 2022. The acquisitions and investments that were made are developing according to plan and the company is becoming even more efficient in the region, not least thanks to the hub that has been established in Bogotá,” the CEO commented.
“Betsson’s offering was recently launched in the city of Buenos Aires and in the province of Buenos Aires – two separately regulated areas in Argentina. The plan is also to launch in Mexico during the coming year through our partnership with Big Bola Casinos,” he added.
Casino remained Betsson’s primary source of income, with revenue from the vertical amounting to €465mn. Sportsbook revenue reached €168m, while other revenue from products including poker and bingo came to €8.2m.
Betsson’s operations in the Central and Eastern Europe and Africa region contributed the most revenue during the year, with the €206m recorded just ahead of €202m from the Nordics. Western Europe revenue reached €128m, while Rest of World revenue was €102m.
This growth was aided by a number of acquisitions. In April Betsson purchased a 50% stake in JDP Tech, a software development business that owns a proprietary technology platform for handling payments in Latin America. That month Betsson also acquired a 35% stake in TG Lab’s Strive Platform, in a strategic venture aimed at supporting its expansion plans in the North American market, while in August it purchased 28% of Canadian start-up Slapshot Media Inc.
In addition, the group’s SW Nordic Limited subsidiary completed its acquisition of the B2C online gambling business of Latin American sportsbook and casino operator Inkabet in October.
Growth was also driven by the operator’s expansion into new markets, having in March secured an online sports betting licence from the Regional Council of Darmstadt, granting it access to the German market.
Betsson also expanded into a number of other territories. It secured a licence in Greece, went live in Mexico through a partnership with local land-based operator Big Bola Casinos and launched its Europebet brand in Belarus. This was followed by its launch in Argentina after the year-end.
“For Betsson, 2021 ended up a record year in terms of revenue and a result that matches the record result from 2018. In 2021, Betsson’s offering has been launched in several new markets, the company has made several strategic acquisitions, developed its offering, and implemented adaptations in response to regulatory changes,” Lindwall added.
“The year 2022 will entail continued investments both in technology and the existing product portfolio. A scalable and flexible technical platform combined with highly competent employees and strong commitment create the right conditions for taking full advantage of Betsson’s business model,” Lindwall concluded.
Source: GMB
