The holding company that invests in and manages fast-growing online gambling operators, Betsson AB, released a trading update outlining expectations for strong results for the third quarter.
The Company Anticipates an Increase in Revenue and Profit
Betsson said Thursday that it expects to see an increase in revenue, as well as operating profit (EBIT) for the third quarter this year. The company acknowledged it anticipates the revenue in Q3, 2022 to be in the range of €199 million ($196 million) to €201 million ($198 million). Although this is an expectation, if indeed the company reports such revenue, it would mark the highest revenue reported for a single quarter. A year-over-year comparison would also mark a significant increase, considering that in Q3, 2021, Betsson’s revenue halted at €170 million ($168 million).
Besides an increase in revenue, the company revealed that it expects to see a record-high operating profit (EBIT). In Q3 this year, Betsson expects to report EBIT in the range of €37.5 million ($37 million) to €39 million ($38.5 million). This result, according to the company, will be “above consensus for the period.” When compared to the €31.7 million ($31.3 million) reported in EBIT for Q3, 2021, the result from the third quarter of this year is expected to mark a strong increase.
Another strong result is expected to be reported in terms of sportsbook margin. The preliminary margin for the third quarter is expected to be 8.3%, which is approximately the same as the margin reported in the previous two quarters this year. However, when compared to the approximate sportsbook margin of 7.7% reported for the past eight quarters before 2022, another increase is expected.
Strong Performance Is the Result of High Customer Activity
Betsson revealed that the record revenue and EBIT are expected to be driven by the positive performance of its casino and sportsbook operations. The company added that the performance of those operations is expected to be boosted by “high customer activity in general.” Primarily, the growth of Betsson’s revenue was driven by the Latin America, Central and Eastern Europe and Central Asia regions. Additionally, the company expects a further boost in its operations from the early start of European football leagues in August, pushed forward due to the World Cup.
“Betsson expects to report new record revenue and EBIT in the third quarter, driven by both sportsbook and casino,“reads a statement released by Betsson
The holding company added that it continues to develop its sportsbook operations by investing in its products. At the same time, Betsson expanded the reach of its sportsbook operations by entering new regulated markets. According to the company, additional information regarding the interim report will be released on October 26, 2022.