Betting Company Betsson Reports a Turnover Higher Than Expected in the First Quarter of 20224

April 29, 2024 | Financial

SWEDEN (April 26, 2024) — The betting company Betsson reports a turnover that was higher than expected in the first quarter of 20224. The stock surges 13%.

The Ebitda result was clearly better than expected.

Net sales rose 11.9 percent to EUR 248.2 million (221.9). The outcome can be compared with the Bloomberg analyst consensus, which was EUR 241 million. The organic increase was 25 percent.

The Ebitda result was EUR 71.6 million (54.3), expected 58, with an EBITDA margin of 28.8 percent (24.5).

Operating profit was EUR 57.9 million (43.0). The operating margin was 23.3 percent (19.4).

The profit before tax was EUR 54.5 million (40.9).

The profit after tax was EUR 42.8 million (36.6).

Earnings per share amounted to EUR 0.30 (0.28).

Casino revenues increased by 19 percent. Sports book revenues decreased by 3 percent and the sports book margin was 6.6 percent (8.0).

The operating cash flow was EUR 50.0 million (48.8).

The number of active customers increased by 15 percent to 1.28 million (1.12).

“For Betsson, the first quarter of 2024 was characterized by continued positive development with high customer activity, good growth and strengthened profitability as well as new growth-oriented initiatives. Revenue increased by 12 percent compared to the previous year’s first quarter and operating profit increased by as much as 35 percent to a new record level, while the operating margin strengthened to 23.3 (19.4) percent,” comments CEO Pontus Lindwall in the interim report.

After Argentina’s new president took office, a devaluation of the Argentine peso was carried out in mid-December by roughly 50 percent, which had a negative effect on the group’s reported earnings in the first quarter.

Organically, revenues increased by 25 percent compared to the corresponding quarter last year.

The high customer activity drove strong growth in gaming revenue for both casino and sports betting during the quarter, with increases of 14 and 25 percent respectively compared to the same quarter last year. Casino revenues increased by 19 percent. The sports book margin amounted to 6.6 percent (8.0), which was lower than the average margin in the last two years.

“After the positive start to the year, we are now looking forward to following the final sprint of the European football leagues and cup games, before it is time for the best national football teams to measure their strength in the EC and Copa America in June and July. There is football fever out there and a number of activities are already underway within the entire organization to ensure that Betsson will be able to deliver a powerful gaming offer for new and existing customers during these major championships,” comments Pontus Lindwall.

Betsson also provides a traditional “trading update” on how the second quarter has started.

Average daily revenue for the second quarter of 2024, through April 22, was 15.1 percent higher than average daily revenue for the entire second quarter of 2023.

Adjusted for currency effects and acquisitions, average daily revenue through April 22 was 32.0 percent higher than average daily revenue for the entire second quarter of 2023. During this period, sportsbook margin has been higher than the average margin over the past eight quarters.

Betsson, MEUR	Q1-2024	Consensus	Change towards consensus	Q1-2023	Change
Net sales	248.2	241	3.0%	221.9	11.9%
EBITDA	71.6	58	23.4%	54.3	31.9%
EBITDA margin	28.8%	24.1%		24.5%
Operating results	57.9			43.0	34.7%
Operating margin	23.3%			19.4%
Profit before tax	54.5			40.9	33.3%
Net result	42.8			36.6	16.9%
Earnings per share, EUR	0.30			0.28	7.1%