Betsson AB has published its interim report for the first quarter of 2023.
Highlights
- Group revenue was EUR 221.9 (170.2) million, an increase of 30%. Organic increase of 38%.
- Casino revenue increased by 37%. Sportsbook revenue increased by 19% and the sportsbook margin was 8.0% (8.3%).
- EBITDA was EUR 54.3 (33.4) million, an increase of 62%. The EBITDA margin was 24.5% (19.6%).
- Operating income (EBIT) was EUR 43.0 (23.6) million, an increase of 82%. The EBIT margin was 19.4% (13.9%).
- Net income was EUR 36.6 (20.9) million, corresponding to EUR 0.28 (0.16) per share.
- Operating cash flow was EUR 48.8 (26.9) million.
- Net debt was EUR -104.5 (-16.9) million.
- Active customers decreased by 11% to 1,115,641 (1,256,449).
CEO’s Comments
“Record-strong start to 2023 with positive developments in both sports betting and casino”
For 60 years we have been offering entertainment in the form of casino games, sports betting and other types of games. Having a long-term perspective is the key when it comes to Betsson’s view about how the business should be run and how value is created for shareholders. In the past years investments have been made to expand geographically to new markets and to strengthen the product offering and the competitive position. We can see that these efforts continue to pay off.
Betsson started 2023 with yet another strong quarter, again delivering record numbers for revenue and EBIT, even though the first quarter has historically often had less activity than other quarters. Revenue increased organically by 38 percent, with sustained positive developments in both sports betting and casino. Geographically, revenue increased in all regions except for the Nordics.
The new business in Argentina is developing well — revenue increased strongly during the quarter, and Betsson continues to invest in marketing to build brand awareness in this regulated market. In February, a third license in the country was obtained, in the province of Cordoba, where a launch will take place later this year. Revenue from B2B continues to increase, which is a sign of strength that reflects the investments made in the past years into product and tech development as well as M&A. Thanks to Betsson’s scalable business model, these investments can be absorbed with maintained or higher profitability over time. EBIT increased by 82 percent and the EBIT margin was 19.4 (13.9) percent during the quarter.
We are proud that Betsson’s involvement in sports is continuing together with clubs, fans and customers. During the quarter, Betsson was the main sponsor of the tennis tournament ATP 250 Chile Open, which took place in February and March in Santiago, Chile. The winner of the tournament was home-grown player Nicolas Jarry, who won his second ATP title this time, after having won the Swedish Open in Båstad in 2019.
Responsible gaming is an integrated part of Betsson’s strategy and a prerequisite for long-term success as a gaming operator. To increase transparency and raise awareness about risky gambling in Sweden and how proactive contacts can change player behaviour, in the first quarter Betsson started to report KPIs for risky gambling for the Swedish market.
To conclude, the year has started well for Betsson with continued profitable growth and strong cash flows. We can look ahead to the rest of the year with a solid financial position that enables continued investments in sustainable growth and value creation for our shareholders.
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