LatAm 70% uptick drives double-digit Betsson Q1 growth

Betsson Reports Impressive Year-on-Year Financial Growth Driven by Latin American Expansion

In a remarkable financial performance, Betsson has recorded an 18.3% year-on-year increase in group revenue for Q1, reaching an impressive €293.7 million (£249.4 million/$334.7 million). This surge can be attributed to a record influx of customer deposits, reflecting the growing popularity of online gaming products.

While this revenue figure surpasses last year’s Q1 revenue of €248.2 million, it does fall short by 4.3% compared to Q4. However, the company’s focus on strategic growth initiatives in key markets has positioned it well for future success.

Particularly noteworthy is Betsson’s strong performance in Latin America, where revenue soared by 70.3% to €74.5 million, underscoring the region’s emerging significance in Betsson’s overall strategy. The increase in revenue is largely due to all-time high deposits, along with substantial growth in both casino and sportsbook operations across Argentina and Peru.

As Betsson’s CEO, Pontus Lindwall, noted in his quarterly update, the company’s expansion efforts in Brazil are set to further enhance its market presence. Recently, Betsson secured a full license for online and sports betting in Brazil—a pivotal move that broadens its operational capabilities in this promising market. Betsson initially entered Brazil in 2019, acquiring a 75% stake in local sportsbook operator Suaposta. This full license now opens the door for expanded services and offerings.

“Betsson’s ambition is to foster long-term, stable profit growth through geographic diversification and growth initiatives in both existing and new markets,” Lindwall emphasized. “Latin America stands out as a critical growth region where we’re actively bolstering our standings.”

Betsson Maintains Optimism Amid Global Economic Uncertainty

Despite ongoing global economic challenges, including concerns over inflation and reduced trade, Betsson reported substantial growth across its core casino and sportsbook sectors. Total customer deposits have risen by 15.2%, achieving a record €1.59 billion. Active player numbers increased by 7%, although registered customers saw a slight decline of 0.7% due to exits from certain markets.

Lindwall acknowledged the economic uncertainty but asserted that the gambling sector remains resilient. “The world we inhabit is marked by significant uncertainty. However, historically, gaming demand has proven relatively insulated from broader economic shifts,” he stated.

“Betsson operates within a dynamic sector characterized by ongoing online migration. The share of online gaming is expected to increase continuously over the coming years. Our commitment remains firmly rooted in providing the best customer experience in the industry.”

Substantial Growth in Casino and Sportsbook Segments

In terms of revenue segmentation, the casino division emerged as a dominant force for Betsson, generating €212.3 million—up 17.6% from the previous year, accounting for 72% of total Q1 revenue. Notably, the addition of 470 new games to Betsson’s portfolio during this quarter has contributed to this growth.

The sportsbook segment also performed admirably, experiencing a 21.6% year-on-year revenue increase to €79.7 million, making up 27% of total Q1 revenue. Additionally, sportsbook margins improved from 6.6% to 8%, indicating enhanced profitability in this area.

Revenue from other products, including poker and bingo, totaled €1.6 million, which marked a 27.3% decline compared to the previous year.

Regional Performance Insights

Aside from Latin America, Central and Eastern Europe demonstrated robust performance, yielding €122.3 million in revenue—a remarkable increase of 11%. This was largely driven by record-high deposits from markets like Croatia and Greece, although declines were reported in Lithuania, Estonia, and Georgia.

In Western Europe, revenue saw an impressive growth of 28.1%, reaching €55.6 million, aided by record revenues in Italy. Both France and Belgium also reported year-on-year revenue increases.

Conversely, Nordic revenue dipped by 19.3% to €37.8 million, largely due to diminished casino activity in Sweden and Denmark, where sportsbook activity also saw a decline.

An additional €3.4 million in revenue was generated from operations in other regions, down 14.8% year-on-year.

Net Profit Shows Healthy Increase to €48.4 Million

Focusing on the net profit, gross profit after service costs rose by 14.6%, totaling €187.9 million. While operating costs increased by 16.9%, the significant revenue growth led to an 8.5% rise in EBITDA, reaching €77.7 million, and operating profit increased by 9.5% to €57.9 million.

After accounting for finance costs, pre-tax profit stood at €61.8 million—a 13.4% improvement year-on-year. Betsson’s tax liabilities amounted to €48.4 million, culminating in a net profit of €48.4 million, reflecting a 13.1% increase.

“With our scalable global business model and proprietary technology, we are well-equipped for continued profitable growth in the future,” Lindwall stated confidently.