Swedish gambling operator Betsson AB published an interim report for the period April-June 2021, posting quarterly all-time high profit driven by its scalable business model.
Growth in Revenue Continues
Betsson revealed that the group’s first-quarter momentum continued, as revenue for the 3-month period ended June 30 was SEK1.752 billion ($210.2 million), an increase of 14% year-over-year, and an organic increase of 24%.
“The second quarter is proof of the strength of our business model.”Pontus Lindwall, President and CEO, Betsson AB
The exceptional financial performance was driven mainly by revenue generated from sportsbook operations which increased by 125%, and with an operating margin of 8.5%, up from 6.9% in the respective quarter of the year prior, more than offset the 5% decrease in online casino revenue.
“During large international sporting events such as the CONMEBOL Copa América in football and the Euro 2020 the group has offered entertaining, competitive, and secure products…We have also increased the exposure of Betsson’s brand, especially in selected countries in Latin America, which has attracted new customers in the region.”Pontus Lindwall, President and CEO, Betsson AB
Operating income, earnings before interest and tax (EBIT), in the 3-month period was SEK383.4 million ($46 million), up 76% from SEK217.7 million ($26.1 million) in Q2 2020, while EBIT margin came out at 21.9%, up from 14.2% in the respective 3 months in the year prior.
“The strength in our business model is coming from a stable and adaptable technology platform enabling economies of scale as our business grows and local knowledge of each market that enables us to quickly adjust our offerings based on changing customer behaviors.”Pontus Lindwall, President and CEO, Betsson AB
Betsson generated for the period April through June net income of SEK337.9 million ($40.5 million), 75% more than the SEK192.9 million ($23.2 million) the gambling group posted in the respective 3 months in the prior year. Diluted per share of capital, the income corresponded to SEK2.54 ($0.3), up from SEK1.4 ($0.17) in Q2 2020.
Operating cash flow also increased year-over-year, reaching SEK570.7 million ($68.5 million) from SEK343.9 million ($41.3 million), as the number of active customers rose by 25% from 820,512 in Q2 2020, to 1,027,635 in the reported period.
Increasing Market Share
The reported period saw Betsson gain market share in some key markets like its home Sweden, the Baltics, and Croatia, as well as establish a presence in Latin America, where it is now the market leader in Peru and in Brazil, and the official regional sponsor of CONMEBOL Copa América.
A subsidiary of Betsson, Betsson Perch Investments AB, acquired 50% of software development company JDP Tech Ltd to secure customer payments in Latin America via the proprietary payments technology platform of the developer firm.
The group acquired 35% of Strive Platform as part of its US investment strategy and the group’s sportsbook is now fully integrated into the Player Account Management (PAM) system, CEO Pontus Lindwall reported, noting a delay for the upcoming B2C launch in Colorado from Q2 2021 to Q1 2022.