Betsson Group has announced its impressive financial results for the second quarter of 2024, showcasing robust revenue growth and enhanced profitability. With a 15% increase in revenue compared to the same period last year, Betsson is demonstrating a strong upward trajectory.
Quarterly Financial Overview
For Q2 2024, Betsson reported a revenue of €271.5 million ($295.6 million), marking a significant 15% increase year-on-year. This growth is largely attributed to an impressive 38% organic growth. The revenue from the casino segment rose by 16%, while sportsbook revenue saw a 13% increase. The sportsbook margin improved to 8.6% from 8.2% in the previous year.
The company’s EBITDA for the quarter reached €77.6 million, reflecting a 15% increase from the previous year. This resulted in an EBITDA margin of 28.6%, slightly up from last year’s 28.5%. Operating income (EBIT) also saw a notable rise of 18%, reaching €64.1 million, with the EBIT margin improving to 23.6% from 23.0%.
Despite these gains, net income experienced a 5% decline, totaling €44.4 million, or €0.33 per share. Operating cash flow decreased by 15%, amounting to €75.8 million. On a positive note, net debt saw a 29% improvement, and the number of active customers grew by 25% to 1.4 million.
First Half of 2024 Highlights
In the first half of 2024, Betsson’s performance was equally strong. Group revenue surged by 13% to €519.7 million, with a 32% organic increase. EBITDA for this period climbed 22% to €149.2 million, achieving an EBITDA margin of 28.7%, up from 26.6% last year. Operating income (EBIT) rose by 25% to €122.0 million, improving the EBIT margin to 23.5% from 21.3%.
Net income for the first half increased by 4% to €87.2 million, translating to €0.63 per share. However, operating cash flow decreased by 8% to €125.8 million. The Annual General Meeting (AGM) approved a substantial dividend payout of €88.5 million, or €0.645 per share, with the first installment distributed in June.
CEO’s Commentary
Pontus Lindwall, Betsson’s CEO, highlighted the company’s impressive performance: “The second quarter of 2024 marked continued high growth and strengthened profitability, setting new records in both revenue and operating income for Betsson. Revenue increased by 15%, and operating income saw an 18% rise, while the operating margin improved to 23.6%. This is our tenth consecutive quarter with increasing operating income, driven primarily by strong organic growth of 38%.”
Lindwall credited this growth to high customer engagement during major events such as UEFA and Copa America in June. Active customers increased by 25%, and deposits grew by 15%. Gross gaming turnover rose by 7% for casinos and 17% for sports betting compared to the previous year.
Revenue and Market Insights
Betsson’s growth was further fueled by a significant proportion of revenue from locally regulated markets, which accounted for 55% of total revenue. This includes contributions from Peru, where local gaming taxes were applied throughout Q2 2024. The company has secured local licenses in Peru for its Betsson and Betsafe brands and anticipates additional licenses for the Inkabet brand.
Strategic Developments
In June, Betsson announced a strategic partnership with Serie A champions Inter Milan. This four-year agreement will see the Betsson.sport brand featured on the team’s jerseys, enhancing brand visibility and engagement.
Additionally, Betsson received an upgrade to an AAA rating from Morgan Stanley Capital International (MSCI) ESG Ratings, up from the previous AA level. This recognition highlights Betsson’s commitment to environmental, social, and governance (ESG) matters.
Betsson’s financial results for Q2 2024 and the first half of the year underscore the company’s strong performance and growth trajectory. With significant revenue increases, improved operating margins, and strategic advancements, Betsson continues to solidify its position as a leading player in the gaming industry. The company’s focus on customer engagement, strategic partnerships, and responsible growth reflects its robust approach to achieving long-term success.