Topline numbers
The sportsbook margin came in at 8.2%, compared to the eight-quarter rolling average of 7.8%.
Revenue from other products such as poker and bingo amounted to €2.3m, down 8.9% year-on-year.
Betsson reported a revenue rise in all geographic markets, with the strongest growth coming from Central & Eastern Europe and Central Asia (CEECA). Revenue climbed by 68% in the region to reach €102.6m.
EBITDA leapt by 72% annually to €67.6m on an EBITDA margin of 28.5%. Operating profit (EBIT) hit €54.5m, up 87% on the prior corresponding period.
Active customers for the period decreased by 10% to 1,119,803, although at the same time, customer deposits increased by 46.7% to €1.2bn.
News nugget
Betsson has decided to withdraw its licence applications in the Netherlands due to significant delays in the process, suggesting resources could be better used elsewhere.
Betsson was one of the leading international brands in the Netherlands prior to regulation but has been absent from the market since it regulated in October 2021.
Rivals have since returned on a regulated basis, including Kindred Group and more recently LeoVegas, but Betsson has instead turned to neighbouring Belgium via the acquisition of betFIRST.
“I don’t know what caused the delays,” said Betsson AB Pontus Lindwall in conversation with iGaming NEXT. “It has been a very lengthy process of going back and forth.
“We had several teams working on it for a very long time, but now we have a lot of other projects that are screaming out for resources,” he added.Best quote
“We see really strong satisfaction scores with the AI tools we are using within customer service.”
Betsson Group CEO Jesper Svensson comments on the use of artificial intelligence throughout Q2.
The technology has been described as an “important innovation factor” for the company, especially in the areas of customer service and responsible gambling tools.
The operator is planning further AI integrations to add more functionality to its sportsbook platform, including in the area of machine learning.
Best question
Betsson teased its Q2 results in a trading update published earlier this month.
Regarding that update, eagle-eyed Pareto Securities analyst George Attling pointed out that Betsson’s guidance for Q3 revenue performance to date was an increase of 13.7%.
However, the actual figure in today’s report had been adjusted to 20.2% (see below).
Attling asked whether Wimbledon had been a particularly successful event for the operator, which might explain the discrepancy.
“That press release was based on a very few number of days (nine), and as we always say, a trading update is just an indication,” said Betsson CFO Martin Öhman in response.
Current trading and outlook
Average daily revenue in Q3 2023 up until 16 July was 20.2% higher than the average daily revenue of the entire Q3 2022.
When adjusted for currency effects and acquisitions, that figure was closer to 30.5% higher, while the sportsbook margin has also been higher than the average margin over time.
These numbers include betFIRST from between 1 and 16 July 2023.
