Betsson AB has reported a strong performance across multiple verticals and markets in the first quarter of the year, although acknowledging a slight decline in casino revenue amid continued regulatory hurdles impacting Western European income.
Revenue for the three months to 31 March 2021 was €170.2m, up from €157.4m in the previous year.
Casino accounted for €111.0m of total revenue in the quarter, though this was down 4.6% on last year after Betsson stopped operating in The Netherlands following the launch of its regulated market. The operator also noted new regulations in Germany also contributed to this decline.
Sportsbook revenue reached €56.4m, up 45.0% on 2021 and a new quarterly record for the group. Betsson said this was driven by a high sportsbook turnover and an above-average margin, helped by strong returns from domestic football leagues, as well as the Uefa Champions League and Europa League competitions.
Revenue from other products including poker and bingo also increased 29,0% from €2.1m in Q1 of 2021 to €2.7m this year.
In terms of geographical performance, the Nordics region led the way with €54.1m in total revenue, representing 32.0% of all revenue for the quarter. Central & Eastern Europe and Central Asia followed with €53.4m, then Latin America on €36.8m, Western Europe with €22.2m and the rest of the world on €3.7m (2.0%).
“Once again, new records were set for sportsbook revenue and in several individual markets. It has been said many times before, geographic diversification makes Betsson’s business less sensitive to disruptions in individual markets,” firms’s CEO Pontus Lindwall said.
“Starting this quarter, developments in Latin America will be reported as a separate region in our financial reports. The region is developing very satisfactorily. Market presence has also been strengthened in Latin America through the launch of our offering in both the City and Province of Buenos Aires, Argentina. To support the region’s growth, Betsson has built up a regional hub with central functions to serve local markets based on their respective conditions. The assessment is that these markets are still in their early stages in many respects and that growth opportunities for the coming years continue to be positive,” Lindwall added.
“Looking ahead, we are seeing more undertakings on the horizon. Our ambition is to further strengthen our presence in North America by operating under a new licence in the Ontario region in Canada starting this summer. We also aim to launch in Mexico together with our local partner Big Bola Casino in 2022. All in all, the year has been off to a good start as there are many important activities that we look forward to during the remainder of 2022,” he concluded.
Source: GMB
