In Q2 Betsson reported an 11.9% year-on-year increase in revenue, helped by record performances by its businesses in both Latin America and Western Europe.
Revenue for the three months to 30 June was €303.7 million ($352.9 million), Betsson said in its Q2 report. This exceeded the €271.5 million reported in Q2 of 2024 and was also 3.4% ahead of Q1 this year.
Record figures in Latin America and Western Europe were stand-out highlights for Betsson in the quarter, with CEO Pontus Lindwall focusing on the former. LatAm revenue topped €84.7 million, a rise of 35.4%, helped by high customer activity and record deposit levels.
Peru and Argentina were singled out as key growth markets in the region for the group. On top of this, Betsson secured a full licence to offer online and sports betting in Brazil in March. This will build on the presence it has had in the country since acquiring a 75% stake in local sportsbook operator Suaposta in 2019.
“It is gratifying to see how we continue to strengthen our leading market positions in these countries through both strategic and tactical market activities as well as targeted product development,” Lindwall said.
Nordics still a sticking point for Betsson
As for its performance in other areas, Western Europe revenue hit a new Q2 high of €59.3 million, an increase of 35.6%. Betsson put this down to a record performance in Italy and growth in France, although Belgian revenue dipped slightly.
Central and Eastern Europe and Central Asia (CEECA) revenue also edged up 3.7% to €118.2 million, meaning it remains the group’s primary revenue region. Growth was reported across Latvia, Lithuania, Croatia, Greece, Georgia and Poland.
However, the situation was very different in the Nordics region, where Betsson has its roots. Revenue was down 28.4% to €33.9 million as a consequence of lower marketing investment. Nordics revenue was also down in Q1.
The remaining €7.6 million was attributed to Rest of World operations, up 93.7% year-on-year. Betsson said this was mainly driven by a favourable sportsbook margin and its August 2024 acquisition of Sporting Solutions.
CEECA drew 39% of total Q2 revenue, ahead of Latin America on 28% and Western Europe 20%. Nordics contributed 11% and Rest of World 2%.
Revenue rises despite reduced customer activity
Looking at the group as a whole, casino revenue increased 11.1% to €212.4 million, or 70% of overall revenue. This was despite only a modest rise (0.9%) in gross turnover to €9.05 billion.
As for sportsbook, revenue climbed 14.9% to €90.0 million, representing 29% of total Q2 revenue at Betsson. This was an impressive feat considering gross sportsbook turnover declined 4.3% to €1.47 billion.
Revenue from other products including poker and bingo dropped 35.0% to €1.3 million, with this accounting for just 1% of total revenue.
Betsson also noted that revenue from locally regulated markets increased 33.0% to €199.6 million, or 65.7% of total revenue.
As for customer behaviour, deposits in Q2 was up 4.4% year-on-year at €1.49 billion. This was despite active customers falling 1.4% to 1.3 million and a 3.7% drop in registered customers to 30 million. Betsson put the latter down to its exit from certain markets.
Betsson in ‘strong’ position for M&A
During its Q2 earnings call on Friday, Lindwall addressed Betsson’s M&A strategy. Towards the end of Q2, Betsson pulled out of its planned acquisition of Holland Gaming Technology and Holland Power Gaming.
At the time, Betsson said this was due to the length of the approval process by Dutch gambling regulator Kansspelautoriteit (KSA). The group said KSA did not issue a decision by the agreed long-stop date, so it elected to withdraw from the deal.
However, Lindwall said M&A is very much still part of Betsson’s future plans, saying the group has a number of opportunities to consider.
“We are in a better position than ever with M&A,” he said. “We have a very strong balance sheet and we have a few interesting opportunities in the pipeline. This could be in existing markets where we want to strengthen our presence or acquisition to move into new markets.”
Net profit nears €50 million in Q2
Cost of services increased 16% on the back of higher gaming taxes in some markets. On top of this, operational costs were up 10.8% due to higher marketing and personnel spend.
However, such was the level of revenue growth that operating profit was 7.6% higher at €69.0 million. After finance costs, pre-tax profit hit €63.7 million, a rise of 11.6%.
Betsson paid €14.6 million in income tax, leaving a net profit of €49.2 million, up 10.8% year-on-year. In addition, EBITDA was 8.5% higher at €161.8 million.
Growth present throughout H1
Looking at the six months to 30 June, the figures told a similar story. Revenue was 14.9% up to €596.3 million, with this leading to a 9.0% rise in operating profit to €133.0 million. This was despite higher services and operational costs.
After finance costs, pre-tax profit hit €125.5 million, a rise of 12.5%. Income tax amounted to €28.2 million, meaning a net profit of €97.3 million, up 11.6%. EBITDA was also 8.4% higher at €84.1 million.
“We are entering the third quarter with good pace and confidence,” Lindwall said. “With a constant focus on product development, data-driven marketing and responsible gaming, we are well placed to continue delivering profitable growth.”
Latin America revenue climbed 35.4% in Q2 as Betsson saw growth in Peru and Argentina.