In a notable year marked by substantial financial strides, Betsson has reported its preliminary figures for the year ending December 31, 2023, showcasing a robust 22% increase in their revenue, soaring to €948.2m. The company witnessed significant organic growth, with a 40% uptick, reaffirming its strength in the highly competitive iGaming sector.
A particular highlight is the Sportsbook segment which brought in revenue of €267.0m, marking a 7% growth from the €250.6m reported in 2022. Betsson’s customer base has displayed unwavering loyalty, with deposits escalating by 37% to €5.01bn when juxtaposed with the 2022 figures.
The upward trajectory continued in earnings before interest, taxes, depreciation, and amortization (EBITDA) which catapulted by 52% to reach €262.7m, a significant rise from the €172.4m of 2022. This financial indicator was not the only one to shine; the EBITDA margin expanded to 27.7% compared to 22.2% the previous year.
Betsson’s operating income (EBIT) was not left behind, recording a striking 60% year-on-year increase to €210.5m, augmenting the EBIT margin to 22.2%, a formidable improvement from 16.9% in 2022.
Pontus Lindwall, the Chief Executive Officer of Betsson, exuded confidence as he addressed the company’s prospects, stating, “I look forward to 2024 with confidence. Betsson is well positioned for continued value creation thanks to a strong financial position, proprietary technology, an attractive customer offering and – above all – our employees.”
The closing quarter of the year also reflected Betsson’s impressive performance. Q4 statistics revealed a 14% rise in group revenue to €251.9m, with organic revenue climbing by 36%. The casino segment was particularly lucrative, experiencing a 25.1% yearly increase to €182.8m, accounting for an impressive 72% of group revenue. Mobile casino revenue reached €157.8m and represented a whopping 86% of the entire casino segment’s revenue.
Despite the sportsbook revenue dipping by 5.2% in Q4, yielding €67.0m and composing 27% of group revenue, it was perceived in light of the previous year which included the bustling FIFA World Cup period. Revenue from mobile devices in this category was €51.2m, indicating a slight decrease in its share of the total sportsbook revenue.
Other Betsson offerings such as poker and bingo merely contributed €2.1m, forming a minimal 1% of total revenue. However, the B2B segment experienced a surge in license revenue for system deliveries, jumping to €65.1m, a remarkable improvement over the €48.8m of Q4 2022. This performance was attributed to enhancements in both casino and sportsbook products. Moreover, Betsson expanded its influence through the acquisition of an 80% stake in KickerTech Ltd at the outset of the fourth quarter.
Geographically, the Central & Eastern Europe and Central Asia (CEECA) region remained Betsson’s powerhouse, making up 42% of total revenue. Greece distinguished itself with a record-high revenue for the quarter, riding the wave of increased customer activities. Notably, Croatia also witnessed significant progress in the casino product sector during this period.
Conversely, Western Europe reported a formidable 61.8% revenue increase to €41.7m, buoyed by substantial growth in Italy and Belgium, the latter also seeing Betsson’s acquisition of BetFirst. However, Germany registered a revenue decline. The Nordics faced a 12.6% downtick in revenue, with Sweden reporting lower revenues attributed to decreased activities in both the sportsbook and casino offerings.
In Q4, Betsson posted a gross profit of €165.2m, coinciding with the revenue growth of 14%. The EBITDA for the same quarter was up by 40%, reaching €71.9m, and the operating income (EBIT) saw a 42% increase to €57.0m.
Despite the impressive numbers, profitability in the final quarter was partially hampered by escalated costs for services standing at €86.7m, mainly due to increased gaming taxes prompted by a higher share of locally regulated revenue. Marketing costs for Q4 experienced a reduction, correlating to 17% of B2C revenue, down from 22% in Q4 2022.
Summarizing the year, Lindwall reflected on the high customer activity that persisted into the last quarter, recognizing new records in deposits and gaming turnover across the casino and sports betting spheres. The group reported unprecedented levels of revenue and operating profit, marking the eighth successive quarter of sequential growth.
With strides like securing an online casino license in Serbia and an online sports betting license in France, Betsson’s year was anything but idle. However, they faced a setback as they withdrew igaming license applications in the Netherlands due to repeated delays in the certification process. Nonetheless, Betsson’s 2023 performance carved out a narrative of success, innovation, and strategic expansion.
