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  • Q1 2024: Betsson reports revenue and EBITDA rise despite FX hurdles
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Betsson reported double-digit year-on-year revenue and EBITDA growth in Q1 2024, despite being hit by foreign exchange headwinds.

Topline numbers

Betsson generated revenue of €248.2m in Q1 2024, marking a year-on-year increase of 12%, with 25% of it being organic.

EBITDA reached €71.6m, up 32% on Q1 2023. This resulted in an EBITDA margin of 28.8%, up from 24.5% the previous year.

Operating income increased 35% to a new record level of €57.9m.

Net income was €42.8m, corresponding to €0.30 per share.

Casino revenue increased 19% year-on-year to €180.5m, while sportsbook revenue saw a year-on-year decrease of 3% to €65.5m.

The sportsbook margin dropped from 8% in Q1 2023 to 6.6% in Q1 2024.

Customer deposits reached €1.4m, marking a year-on-year increase of 20.1%.

Active customers during the quarter amounted to 1.3 million, reflecting a year-on-year increase of 14.8%.

Geographical breakdown

Revenue in the Nordics reached €46.9m, marking a 9.6% year-on-year decline, which was primarily driven by lower activity in the casino product.

Sweden reported decreased revenue compared to the corresponding period last year due to lower activity in both the sportsbook and casino product, whereas Denmark reported increased revenue due to growth in both the sportsbook and casino product.

Revenue from Western Europe was €43.4m, up by 59.8%, with Belgium and Italy reporting growth. In Italy, both customer deposits and turnover reached record levels.

In Q1 2024, Betsson launched its flagship brand in the Italian online gambling market.

Revenue from Central & Eastern Europe and Central Asia (CEECA) was €110.2, an increase of 18%, with Greece, Croatia, and Latvia reporting all-time high revenues.

Latam revenue decreased 3.3% year-on-year to €43.7m.

This reduction was predominantly driven by a low sportsbook margin in Peru, coupled with unfavourable currency impacts in Argentina.

Revenue from Rest of the World fell 5.8% year-on-year to €3.9m, also mainly due to negative currency effects in Nigeria.

News nugget

Betsson AB CEO and president Pontus Lindwall described Q1 2024 as a “strong start to the year.”

“In the past quarter group revenue increased by 12% and operating profit EBIT increased by 35% year-over-year despite FX headwinds,” Lindwall said during the earnings call.

He highlighted the impact of currency devaluation in Argentina.

“After the new president in Argentina took office, a devaluation of the Argentine peso of more than 50 percent was carried out in December, which had a negative effect on reported revenue for the group in the first quarter.”

Additionally, a low sportsbook margin posed challenges, particularly in Latin America, which contributed 18% to the total group revenue in Q1 2024.

“We are completely compliant, and we look forward to receiving a licence in Finland.”
Betsson AB CEO and president Pontus Lindwall

During the earnings call, analyst Oscar Rönnkvist from ABG Sundal Collier enquired about Betsson’s situation in Finland.

In February, Finland’s National Police Board (NPB) had placed Betsson holding company, BML Group, on its payment blocking list.

However,  the order was later suspended by the country’s Supreme Administrative Court.

Lindwall commented on the impact, stating: “It’s never good when you don’t have the full range of payment options available, and there is not much marketing to be done in Finland at the moment.”

Rönnkvist then asked whether the situation might affect the company’s ability to obtain a licence in the future.

“We are completely compliant, and we look forward to receiving a licence in Finland,” Lindwall responded.

Current trading & outlook

Betsson said the average daily revenue in Q2 2024 up to and including 22 April showed a 15.1% increase compared to the entire second quarter of 2023.

Adjusted for currency effects and acquisitions, this figure was 32%.

Moreover, during this period, the sportsbook margin was higher than the average margin over the last eight quarters.

Investors reacted positively to the results, and shares in Betsson were trading more than 14% higher at the time of writing.

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