Online gambling giant Betsson has shared its first-quarter results. During the period, the company reported a 12% revenue increase, reaching €248.2 million ($265.8 million), with a 25% growth organically. According to the Swedish firm, the quarter was characterized by “a continued positive development with high customer activity, good growth, and strengthened profitability, as well as new growth-oriented initiatives.”
The growth-oriented initiatives include the launch of a second brand in Italy during Q1, with the flagship Betsson brand going live in March. Additionally, the company also announced the launch of Betfirst in Belgium and acquired Holland Gaming Technology during the three-month period.
Over the period, EBITDA surged by 32% to €71.6 million ($76.7 million), displaying an improved margin of 28.8%, compared to 24.5% in the previous year. Operating income (EBIT) saw a 35% increase to €57.9 million ($62.06 million), achieving a margin of 23.3%, a rise from 19.4% in 2023.
However, total operating costs climbed up 1.4% to €106 million ($113.6 million) while the cost of services was up 13.3% to €84.3 million ($90.3 million). Despite this, Betsson delivered an operating profit of €57.9 million ($62.06 million), an all-time quarterly high for the company.
Financial costs totaled €3.4 million ($3.6 million), leaving a pre-tax profit of €54.5 million ($58.4 million), up 33.3% year-on-year. The group paid some €11.7 million ($12.5 million) in tax, thus ending Q1 with a net profit of €42.8 million ($45.8 million), an increase of 16.9%
Breaking down the figures by segments, casino revenue increased 19% to €180.5 million ($193.4 million), driven by the launch of 306 new games during the quarter. Casino revenue from mobile was €151.2 million ($162,08 million) and accounted for 84% of total casino revenue. In addition, casino gross turnover climbed 13.8% to €8.81 ($9.4 billion) billion for the first quarter.
For its part, sportsbook revenue decreased by 3% to €65.5 million ($70.2 million), with 81% coming from mobile. This was despite a 24.9% increase in gross sports betting turnover to €1.66 billion. Sportsbook margin was 6.6%, a decrease from last year’s 8%. Furthermore, revenue from other products including poker and bingo saw a dip of 18.5% to €2.2 million ($2.3 million).
In terms of geographical performance, Central and Eastern Europe and Asia (CEECA) is still the leading region for the company. In the first quarter, revenue climbed 18% to €110.1 million ($118.02 million), or 44.0% of total revenue. This was driven by record figures in Croatia, Greece and Latvia.
Western Europe revenue jumped 59.9% to €43.4 million ($46.5 million). According to the company, this was due to new launches in Belgium and Italy. Western Europe accounts for 17% of all revenue at Betsson.
However, the Nordics’ revenue saw a 9.6% decline to €46.9 million ($50.2 million), with Sweden reporting lower activity across sportsbooks and casinos. Meanwhile, Latin America’s revenue also fell 3.3% to €43.7 million ($46.8 million), although this was mainly due to negative currency effects in Argentina, as reported by the company. Lastly, rest of world revenue slipped 5.8% to €3.9 million ($4.1 million), mainly driven by a negative currency effect in Nigeria.
Pontus Lindwall, President and CEO, said: “After the positive start to the year, we now look forward to following the final rounds of the European football leagues and cups, before it is time for the best national football teams to measure their strengths in the UEFA Euro 2024 and Copa America in June and July.”
“There is football fever out there and within the entire organization a number of activities are already underway to ensure that Betsson will be able to deliver a powerful player offering for new and existing customers during these major championships,” he concluded.