Betsson expects record revenue, operating profit for the second quarter of FY2023

Online gambling company Betsson AB has released a trading update for the second quarter of its 2023 financial year. The company expects to post record revenue and operating profit during the period.

According to the operator, revenue in the three months to June 30 is expected to be around €235.5–237.5 million ($259.8-263.5 million), which would be the highest ever for Betsson in a single quarter.

As for profit, it is estimated to be around €53.5–55 million ($59.3-61.04 million), another new quarterly high. According to the company, increased revenue and its scalable business model have contributed to the high level of operating profit.

As per the report, the second quarter has been characterized by continued high customer activity both in casino and sports betting, which has resulted in strong financial development for Betsson.

The preliminary sportsbook margin was approximately 8.2% for the quarter, which is in line with the corresponding quarter last year (8.3%) but higher than the rolling average for the last eight quarters (7.8%).  

Group revenue increased in all regions compared to the corresponding quarter in the previous year. Breaking down performance in each market, Nordics and Latin America both held a 22% share of all revenue in the quarter, Western Europe 11%, Central & Eastern Europe and Central Asia (CEECA) 43%, and the rest of the world 2%.

License revenue for system delivery to B2B customers is expected to amount to €64–65.5 million ($71-72.6 million) in the quarter. This would correspond to approximately 27% of group revenue.

And looking at the Q3 performance to date, the average daily revenue to July 9 was 13.7% higher than in the full third quarter last year. 

The latest figures come on the back of a record first quarter during which the company’s revenue hit an all-time high of €221.9 million ($246.2 million). Casino was the primary source of revenue in Q1, with revenue reaching a record €152 million ($168.6 million), up 36.9%. This was helped by the launch of 319 new casino games in the period, 16 of which were exclusive to Betsson brands.

Sportsbook revenue was also up 19.1% to €67.2 million ($74.5 million), with €55.7 million ($61.8 million) of this coming from betting on mobile. Revenue from other products including poker and bingo slipped 1.9% to €2.7 million ($2.9 million).

Last month, the company announced the acquisition of Belgian sports betting and gaming operator betFIRST for a total sum of €120 million ($130 million). The deal was completed on July 5. 

In parallel with the acquisition, Betsson has also formed a strategic partnership with French casino operator Groupe Partouche. Under the terms of the deal, the company will be able to expand its new Belgian offering with an online casino. While the partnership will initially focus on Belgium, there is scope to expand into other regulated markets.

The Belgium launch remains subject to obtaining the required licenses. Groupe Partouche operates land-based casinos in France and Switzerland and holds an offline casino license in Belgium, which can be extended to an online casino license. An online license would enable the operator to offer a full range of online casino products.