Betsson Reports Impressive Q1 2023 Financial Results
Betsson AB has released its interim financial report for Q1 2023, revealing an impressive 30 percent, year-on-year, increase in group revenue to €221.9 million (£196.8m/US$250m).
The organic increase was even higher at 38 percent. Casino revenue saw a substantial 37 percent increase, while sportsbook revenue rose by 19 percent despite a slight drop in the sportsbook margin from 8.3 percent to eight percent.
Betsson’s EBITDA also saw a significant boost, rising by two-thirds to €54.3 million, and the EBITDA margin also increased to 24.5 percent, from 19.6 percent, in the same period last year. The operating income (EBIT) also saw an 82 percent increase to €43.0 million, with the EBIT margin increasing to 19.4 percent, from almost 14 percent in Q1 2022.
The net income for the quarter was €36.6 million, up from €20.9 million in the same period last year, with earnings per share of €0.28, up from €0.16.
Betsson’s operating cash flow for the quarter was €48.8 million, up from €26.9 million in Q1 2022.
Although the number of active customers decreased by 11 percent, year-on-year to 1,115,641, Betsson’s Q1 2023 results demonstrate the company’s ability to perform well in a highly competitive market.
Pontus Lindwall, President and CEO of Betsson AB, commented: “Having a long-term perspective is the key when it comes to how the business should be run and how value is created for shareholders.
“In 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.
“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.
“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.”