Betsson Reports Robust Financial Performance for Q2 2024 with 15% Revenue Growth

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Betsson has unveiled its financial results for the second quarter of 2024, showcasing a substantial revenue increase of 15% compared to the same period last year. The group’s revenue for Q2 2024 reached €271.5 million ($295.6 million), driven by impressive organic growth of 38%. This robust performance highlights Betsson’s ongoing success and strategic advancements in the competitive online gaming market.

Financial Highlights for Q2 2024

Revenue and Growth

In Q2 2024, Betsson’s revenue saw a remarkable rise, reflecting the company’s strong market presence and operational efficiency. The €271.5 million revenue figure includes significant contributions from both casino and sportsbook segments. The 38% organic growth underscores Betsson’s ability to drive substantial growth through its core operations.

Casino and Sportsbook Performance

Casino Revenue: The casino segment experienced a 16% increase, demonstrating Betsson’s success in attracting and retaining players through its diverse range of gaming offerings.
Sportsbook Revenue: The sportsbook segment grew by 13%, with an improved sportsbook margin of 8.6%, up from 8.2% in the previous year. This improvement reflects Betsson’s effective strategies in enhancing sportsbook operations and player engagement.

EBITDA and Operating Income

EBITDA: Betsson achieved an EBITDA of €77.6 million, marking a 15% increase from the prior year. The EBITDA margin improved slightly to 28.6% from 28.5%, highlighting efficient cost management and operational effectiveness.
Operating Income (EBIT): Operating income rose by 18% to €64.1 million, with the EBIT margin increasing to 23.6% from 23.0%. This growth signifies strong financial performance and profitability.

Net Income and Cash Flow

Net Income: The net income for the quarter was €44.4 million, corresponding to €0.33 per share. Although this represents a 5% decrease from the previous year, the overall financial health of the company remains robust.
Operating Cash Flow: Operating cash flow decreased by 15% to €75.8 million, reflecting changes in working capital and investment activities.

Debt and Customer Metrics

Net Debt: Betsson improved its net debt by 29%, indicating strong financial management and reduced leverage.
Active Customers: The number of active customers increased by 25% to 1.4 million, underscoring Betsson’s growing appeal and market reach.

Half-Year Financial Overview for 2024

Revenue and Growth

For the first half of 2024, Betsson reported a 13% increase in group revenue, reaching €519.7 million, with a 32% organic growth. This performance illustrates Betsson’s successful strategy in expanding its market presence and driving revenue growth.

EBITDA and Operating Income

EBITDA: The EBITDA for the first half of 2024 was €149.2 million, up by 22%, with an EBITDA margin of 28.7%, compared to 26.6% last year. This increase highlights improved operational efficiency and profitability.
Operating Income (EBIT): Operating income rose by 25% to €122.0 million, with the EBIT margin improving to 23.5% from 21.3%. This reflects Betsson’s ongoing efforts to enhance operational performance.

Net Income and Cash Flow

Net Income: Net income increased by 4% to €87.2 million, corresponding to €0.63 per share. This steady increase signifies consistent financial performance and shareholder value.
Operating Cash Flow: Operating cash flow decreased by 8% to €125.8 million, reflecting various operational and investment activities.

Dividend Distribution

The Annual General Meeting (AGM) approved a dividend distribution of €88.5 million, equivalent to €0.645 per share. The first installment of this dividend was distributed in June, demonstrating Betsson’s commitment to returning value to its shareholders.

Key Drivers of Growth

Customer Activity and Market Trends

The significant growth in revenue and operating income can be attributed to high customer activity during major sporting events such as UEFA and Copa America in June. Betsson experienced a 25% increase in active customers and a 15% rise in deposits, reflecting heightened engagement and betting activity.

Gross Gaming Turnover

Casinos: Gross gaming turnover for casinos increased by 7%.
Sports Betting: Gross gaming turnover for sports betting rose by 17% compared to the same quarter last year. This increase indicates Betsson’s successful expansion and engagement strategies in both segments.

Local Gaming Taxes

Despite an increased proportion of revenue subject to local gaming taxes, Betsson managed to enhance its operating margin and income. Revenue from locally regulated markets was 55%, including significant contributions from Peru, where local gaming tax was accrued throughout the quarter.

Strategic Developments

Licensing and Market Expansion

Betsson has secured its first local licenses in Peru for the Betsson and Betsafe brands and anticipates additional licenses for the Inkabet brand. These local licenses will facilitate further market penetration and expansion.

Partnerships and Sponsorships

In June, Betsson announced a partnership with Serie A champions Inter Milan, featuring the Betsson.sport brand on the team’s jerseys for the next four years. This sponsorship highlights Betsson’s commitment to enhancing its brand presence and market visibility.

ESG Recognition

Betsson received an AAA rating from Morgan Stanley Capital International (MSCI) ESG Ratings in June. This recognition reflects Betsson’s dedication to environmental, social, and governance (ESG) principles and sustainable business practices.

Conclusion: The Financial Report

Betsson’s financial results for the second quarter of 2024 demonstrate robust growth and strong operational performance. With a 15% increase in revenue, improved profitability, and strategic market expansions, Betsson is well-positioned for continued success in the competitive online gaming industry. The company’s commitment to enhancing its offerings, securing local licenses, and forming strategic partnerships underscores its ongoing dedication to growth and innovation.

FAQs About Betsson’s Financial Results of Q2 2024

1. What were Betsson’s financial results for the second quarter of 2024?

For Q2 2024, Betsson reported a 15% increase in revenue, reaching €271.5 million ($295.6 million). The quarter saw an EBITDA of €77.6 million and an operating income (EBIT) of €64.1 million. Net income was €44.4 million, reflecting a 5% decrease compared to the previous year.

2. How did Betsson’s casino and sportsbook segments perform in Q2 2024?

Casino Revenue: Increased by 16%.
Sportsbook Revenue: Rose by 13%, with a sportsbook margin of 8.6%, up from 8.2%.

3. What were the EBITDA and EBIT margins for Q2 2024?

EBITDA Margin: 28.6%, slightly up from 28.5% last year.
EBIT Margin: 23.6%, improved from 23.0%.

4. How did net income and operating cash flow perform in Q2 2024?

Net Income: €44.4 million, down 5% from the previous year.
Operating Cash Flow: Decreased by 15% to €75.8 million.

5. What were the key performance metrics for the first half of 2024?

Revenue: Increased by 13% to €519.7 million.
EBITDA: Up by 22% to €149.2 million, with a margin of 28.7%.
Operating Income (EBIT): Rose by 25% to €122.0 million, with an EBIT margin of 23.5%.
Net Income: Increased by 4% to €87.2 million.
Operating Cash Flow: Down by 8% to €125.8 million.

6. What was the dividend declared by Betsson for 2024?

The AGM approved a dividend distribution of €88.5 million, equivalent to €0.645 per share, with the first installment distributed in June.

7. What were the main drivers of Betsson’s growth in Q2 2024?

Growth was driven by high customer activity during major events such as UEFA and Copa America. Betsson experienced a 25% increase in active customers and a 15% rise in deposits. Gross gaming turnover increased by 7% for casinos and 17% for sports betting.

8. How did local gaming taxes impact Betsson’s performance?

Despite an increased proportion of revenue subject to local gaming taxes, Betsson improved its operating margin and income. Revenue from locally regulated markets was 55%, including Peru, where local gaming tax was accrued throughout the quarter.

9. What strategic developments has Betsson undertaken recently?

Betsson secured its first local licenses in Peru for the Betsson and Betsafe brands and is expecting additional licenses for the Inkabet brand. Additionally, Betsson announced a sponsorship agreement with Serie A champions Inter Milan for the Betsson.sport brand to appear on the team’s jerseys.

10. What recent ESG recognition did Betsson receive?

In June, Betsson received an AAA rating from Morgan Stanley Capital International (MSCI) ESG Ratings, recognizing its commitment to environmental, social, and governance (ESG) principles.