Betsson announced revenues of € 186.3 million (£ 158.9 million / $ 189.5 million) from its second quarter results. This made Latin America the largest market, but Western Europe’s revenues fell by almost 40%.
Betsson CEO Pontus Lindwall [pictured above] He said the business saw progress in most areas throughout the quarter and appreciated the progress of the sportsbook.
“Betsson’s second quarter continued to grow well, with unprecedented revenue and additional investments to support our growth,” said Lindwall. “The group’s organic growth was 13%, driven primarily by Latin America, Central and Eastern Europe and Central Asia. These markets still have a low share of online games, so they have the potential for long-term growth. I have.”
“The sportsbook business grew strongly this quarter, with total sales up 20% and a profit margin of 8.3% (8.5%), which was the highest profit ever.”
Latin America is currently Bettsson’s largest market. Second-quarter sales were € 45.7 million, a significant increase of 86.2% year-on-year. Revenues from Central and Eastern Europe and Central Asia increased by 23.4% to € 61.1 million.
Bettsson said these were the highest revenues ever in both regions.
In other regions, revenue from Scandinavia was down 5.7% to € 51.2 million. Bettsson believes that this decline at the 2020 European Championship in the second quarter of 2021 has resulted in “favorable results” and “high levels of activity.”
The decline in revenue to € 24.8 million in Western Europe is due to Bettsson’s withdrawal from the Dutch market in order to comply with the licensing measures outlined by the Dutch regulatory agency.
Lindwall mentioned Germany and said the country’s market is “characterized by low levels of channelization due to widespread restrictions, high taxes, and an unclear licensing process.” Lindwall said that for this reason Betsson has applied for one online casino license in Germany through its subsidiary Zecure Gaming Ltd.
Overall revenue for the quarter was up 7.8% from the second quarter of 2021. Casino revenues amounted to € 122.2 million, an increase of € 1.6 million annually. Meanwhile, sportsbook revenue increased by 22.4%, accounting for the remaining € 61.6 million.
The total cost of services for the year totaled € 67.5 million, more than € 10 million higher than in the second quarter of 2021, and gross profit increased by 2.6% annually to € 118.8 million.
Total operating expenses for the quarter were € 89.6 million and operating income was € 29.2 million. This was 22.7% lower than in the second quarter of 2021.
Marketing bears the highest costs throughout the quarter, totaling € 30.5 million, followed by labor and other external costs of € 29.8 million and € 25.8 million, respectively.
Following a total of € 2.2 million in financial balance and a tax of € 2.8 million in losses, net profit totaled € 28.6 million, a decrease of 14.1% annually.
Operating cash flow was € 37.8 million, including € 1.1 million due to changes in working capital. This was a 32.8% decrease from the previous year, but Betsson said it was due to the positive effects of VAT collection in the second quarter of 2021.
Net liabilities were € -19.8 million, compared to € 14.6 million in net debt in the second quarter of 2021, while Betsson is now in a net cash position.
Interest, taxes, depreciation and profit before interest (EBITDA) for the quarter were € 39.3 million, down 16% year-on-year.
On the other hand, cash flow from investing activities resulted in a loss of 14.8 million euros. It consisted primarily of an investment in Betsson and the proceeds of the Latin American sportsbook Inkabet, which Betsson acquired last year.
Sportsbook sales also reached a record high, totaling € 991.3 million, an increase of 20.5% annually. This was despite the fact that there were some notable sporting events in the second quarter of 2021.
Betsson’s revenue over the past year was € 356.4 million, an increase of 7.9% over the previous year. Gross profit fell 3.5% to € 225.8 million. EBITDA totaled € 72.7 million, a loss of 11.6%.
Total net profit was also down 13.4% to € 49.4 million. Annual operating income is currently € 52.8 million and operating expenses are € 173 million.
The number of registered customers reached nearly 25 million in the second quarter, but the number of active customers decreased by 0.7% from the previous quarter to 1.2 million.
In June, Betsson issued a number of bonds totaling € 90 million under a three-year contract at an interest rate of 6.5%. Bonds are expected to mature in 2025.
