Betsson Group “unsatisifed” despite strong Q1 growth
Betsson Group has detailed important growth in important areas of the firm as it published its results for the first quarter of the year. The group is now hoping to be able to progress in its long-term goals of outgrowing the total market.
Betsson is hoping to be able to achieve these goals in a sustainable yet profitable way, as it strives to make sure it sees growth in current markets, all while expanding into numerous new markets and work on developing its current B2B offering. This news follows on from the publishing of the quarterly update for the period during the months of January and March, as CEO and president of Betsson Pontus Lindwall explains that despite the success, the group is not satisfied since they were faced with so many market difficulties.
During the first three months of the year, the group was able to see a 12% increase in revenue, up from SEK 1.41 billion to SEK 1.59 billion. Net income also rose by 5% in Q1 up to SEK 240.1 million, compared to the SEK 229.6 million recorded during the same period in 2020. EBITDA also saw an increase of 2%, up from SEK 352.9 million to SEK 361.7 million. The number of active customers also rose by a whopping 39% up to 948,109.
Moreover, revenue from casino during this period amounted to SEK 1.17 billion (up 16% from the SEK 1.01 billion in 2020). The casino segment released 180 new titles during this quarter. The revenue from casino made up 74% of the group revenue, with mobile casinos accounting for 74% of total casino revenue (compared to 67% in 2020). Revenue acquired from sportsbook during Q1 was at SEK 394 million, a 2% increase from last year, and made up 25% of the group revenue.
Looking into revenue by region, Central Asia and Eastern and Central Europe saw a 27% rise in revenue, up from SEK 424.7 million to SEK 541.1 million. The Nordic countries witnessed a 1% increase, up to SEK 487 million. Western Europe’s revenue, however, dropped by 6% down to SEK 383.6 million from SEK 406.5 million in 2020 as a large portion of this drop came from the United Kingdom and Germany.
Dissecting Betsson’s global performance in a little more depth, Lindwall explained:
“2021 began with a quarter that showed growth compared to the same period last year. On several markets, such as Italy, Baltics, Peru and Chile, we continue to deliver strong growth and good profitability. This is very encouraging, however, we are not fully satisfied as we have experienced difficulties in a few other markets, for various reasons.
As previously communicated, revenues from the German market have decreased significantly, due to the restrictions introduced and the fact that we closed several brands in connection with this. In Norway it’s still difficult finding efficient payment solutions, but with its own proprietary payment platform, Betsson manages the situation. Operations in the Netherlands continue as before, pending the start of the licensing process for foreign operators. We are pleased by the continued favourable development in the CEECA and ROW regions, thanks to successful brand launches and continuous improvements in the product offering.”