Betsson, a leading online gambling company, has released its financial report for the second quarter of 2022. The report reveals notable growth in revenue, driven particularly by the sportsbook segment, along with insights into operational metrics and future strategies.
Revenue
In Q2 2022, Betsson reported group revenue of €186.3 million, marking an 8% increase from the same period in 2021. Notably, the sportsbook revenue surged by 22%, contributing significantly to the overall growth. Conversely, casino revenue witnessed a modest increase of 1% year-over-year. This disparity highlights the robust performance of the sportsbook segment, possibly influenced by factors like sporting events and customer preferences.
Operational Performance
Despite the revenue growth, Betsson experienced a decline in EBITDA and operating income compared to the previous year. The EBITDA for the period stood at €39.3 million, reflecting a 16% decrease year-on-year. Similarly, operating income declined by 23% to €29.2 million. These figures indicate potential challenges in managing costs or operational efficiency amidst revenue growth.
Customer Metrics
One bright spot in Betsson’s report is the notable increase in active customers, which rose by 21% year-on-year to 1,246,719. This surge suggests effective customer acquisition strategies or enhanced customer retention efforts, contributing to the company’s revenue growth.
CEO Perspective and Future Outlook
Pontus Lindwall, CEO of Betsson, expressed satisfaction with the company’s performance and emphasized its strategic investments for expansion. Lindwall highlighted the organic growth of 13%, primarily driven by Latin America and the CEECA region, underscoring the company’s focus on emerging markets with substantial growth potential.
Looking ahead, Lindwall remained optimistic despite uncertain market conditions, citing the recent refinancing of bonds until 2025, which provides financial flexibility for future investments. He mentioned upcoming market launches in Mexico and Ontario, along with the anticipated football World Cup, which is expected to boost performance in the fourth quarter, traditionally the strongest period for the company.
Betsson’s Q2 2022 report showcases robust revenue growth driven by the sportsbook segment, despite challenges reflected in declining EBITDA and operating income. The increase in active customers underscores effective customer engagement strategies. With strategic investments in expansion and upcoming market launches, Betsson aims to capitalize on growth opportunities and navigate through market uncertainties, maintaining a positive outlook for the future.