Record-high revenue recorded by Betsson in the year’s second quarter
Author:
Muhammad Gregory
One of the largest iGaming holding companies, Betsson AB, has recently shared its performance results for the year’s second quarter. The proof of a positive performance has been reflected in the quarterly revenue, which has recorded a massive spike of 27 percent. Betsson has managed to accumulate €236.8 million between April and June this year. The sum collected is also higher than the previous quarter’s total, confirming a record-high revenue for the second consecutive quarter this year.
Strong results in Q2 for Betsson?Lukas Blazek/Unsplash
As a holding company, Betsson always aims to invest in established and upcoming iGaming operators that show potential. Expansion across the European continent is the company’s primary aim. Such expansion can only be made possible by entering multiple regulated gambling jurisdictions in Europe. Recently, Betsson set foot in Belgium for the first time after the acquisition of iGaming and sports betting operator BetFIRST. The Swedish entity planned the move to enter and establish its brand in the regulated Belgian market as it also struck a deal with French casino operator Groupe Partouche, which runs 42 casinos across Belgium, France, Switzerland, and Tunisia. The collaboration has helped Betsson and Groupe Partouche work together to create an online casino for Belgium. Once ready, the product will be offered to the players residing within the borders of the country and will become the nation’s first joint online casino, which will be regulated by De Kansspelcommissie (KSC), the official gambling authority of Belgium.
While most of Betsson’s brands have performed well and stayed away from trouble, one subsidiary landed itself in trouble in Finland during the second quarter. Sweden’s Nordic neighbour is yet to change its gambling system from a monopoly to a license-based format. Hence, Veikkaus is the sole gambling operator in the country. However, Betsson-owned BML Group was targeting people in Finland with one of its marketing activities. The National Police Board (NPB) of Finland detected this violation and immediately imposed a conditional fine of €2.4 million. The operator was also hit with a prohibition order in addition to the fine. According to the NPB, this was not the first time BML Group had targeted the Finnish audience with its promotional activities. The conditional fine and prohibition order was imposed since it was a repeated offense, constantly violating Section 16 of Chapter 17 of the Criminal Code in the Finnish Lottery Act. However, the operator disagreed with NPB’s decision and decided to appeal the decision. The final judgment is expected to be out soon.
Apart from investing and acquiring iGaming operators, Betsson is also actively looking for strategic partnerships and profitable sponsorships. The company has already secured the Racing Club sponsorship for the upcoming season and also renewed its sponsorship with the Lithuanian Basketball Federation (LFK). The sponsorship sees the Betsson-owned brand, BetSafe, remain the main sponsor of the Lithuanian Men’s National Basketball Team ahead of the FIBA Basketball World Cup, which starts in August this year. Last month, Betsson secured another massive sponsorship deal with Argentine Primera Division giants Boca Juniors. In what is deemed a strategic alliance, Betsson will be the club’s main sponsor till the end of next year, and during this period, the company’s name will feature on the front of the jerseys of the men’s and women’s first-division teams. The performance of Betsson in all segments has been quite promising this year, and hence the record high revenue for a second successive quarter does not come as a surprise.
Pontus Lindwall, the CEO of Betsson, shared his thoughts on the company’s performance in Q2 this year.
“In June, the leading Belgian sports betting operator betFIRST was acquired, and at the same time, a new strategic partnership was entered into with the publicly listed French casino operator Groupe Partouche to offer online casino games in some regulated markets, with Belgium being the first country for this collaboration. These strategic initiatives together enable a competitive offering in sports betting and casino for the Belgian market. The investment in Belgium resonates well with Betsson’s ambition to deliver long-term profitable growth. In June, an important sponsorship was entered into with the long-standing Argentinian football club Boca Juniors, previously home to perhaps the greatest player ever in football history, Diego Armando Maradona. The sponsorship, one of the largest ever for Betsson, means that the club’s iconic match shirt will feature the Betsson logo during local and international matches until the end of 2024. The collaboration with Boca Juniors strengthens Betsson’s brand and rapid expansion in Argentina and throughout Latin America, and we will be following the team’s development with excitement together with fans and customers.”
Betsson’s Q2 and H1 performance in numbers
In the second quarter of last year, Betsson reported quarterly revenue of €186.3 million. In the corresponding quarter this year, a 27 percent increase has taken the quarterly revenue total to €236.8 percent. The Casino segment marked the most significant improvement as its revenue increased by a whopping 35 percent. The Sportsbook segment was also in the green as it registered a 13 percent spike. There was a massive 72 percent increase in the company’s EBITDA as it touched the €67.6 million mark. In the corresponding quarter last year, EBITDA was €39.3 million.
In the opening six months of this year, the revenue increased 29 percent, rising from €356.4 million to €458.7 million. This spike also marks an organic revenue increase of 41 percent. The Gross profit between January and June this year was €310 million, 37 percent higher than the corresponding period last year when it was €225.8 million. The Casino revenue during the same period increased 36 percent from €233.2 million to €317.1 million, while the Sportsbook revenue climbed 16 percent from €118 million to €136.7 million. The only part of the report that showed a dip was the number of active customers. The figure reported a 10 percent decrease.
Betsson withdraws license application in the Netherlands
Betsson has entered four regulated European gambling markets in the last five years. The operator was on the verge of entering a fifth jurisdiction but decided to withdraw its application. After a two-year absence, Betsson was all set to re-enter the Dutch gambling market. According to the operator, the license application was submitted months ago but was withdrawn primarily because of significant delays and resource allocation considerations. Despite the withdrawal, the company has not ruled out a return to the Dutch market and may reapply for the permit in the near future.
Betsson was operating in the Netherlands before the market was unregulated. Earlier this year, the operator shut down its online casino brand, Casino Winner. This was the platform that was used to offer iGaming to the Dutch audience before the regulated markets went live in October 2021. Betsson is one of many entities that does not encourage unlicensed gambling. Since the entity had not applied for a license when the Kansspelautoriteit (KSA) was instated as the Netherlands’ gambling supervisory authority, it announced the decision to cease all activity within the jurisdiction of the Dutch regulator in 2021.
