Betsson Group records best ever quarter with boosts in sports betting and casinos
Author:
Muhammad Gregory
After recording an all-time high revenue of $186.8 million in Q2 on the back of expansion in Latin America and the CEECA region, Swedish operator Betsson Group has now reported their best ever quarter in Q3. The company notched a revenue of $199.6 million in the third quarter this year.
Betsson also stated that it had completed a a $14m majority stake acquisition in Maltese tech company KickerTech. ?Mark Konig/Unsplash
Betsson is a company based in Stockholm that brings a host of online gambling products to the market, the chief of them being the sports betting and casino offerings. Betsson provides all products and services via more than 20 online gaming brands like Betsafe, NordicBet and more. The operator is also listed on the Nasdaq Stockholm Large Cap List. The announcement of a
The $199.6 million Q3 revenue is an 18% increase when compared to last year’s Q3 revenue, and includes a 35% organic increase year-on-year. Their casino revenue was up by 8% while Sportsbook revenue increased by 45% with a margin of 8.3%. EBITDA went up 19% with a margin of 24.3%. while EBIT was up by 21% at $38.4 million, and the margin was 19.2% as Betsson’s net income was steady at $32.6 million. The operating cash flow was reported as $38.5 million while the total number of active customers increased by 7% to 1,056,400.
The expansion of Betsson has been rampant across several countries in Europe, including countries like Estonia and Lithuania. Countries like Croatia and Greece have also hopped on and contributed to this growth in their Central and Eastern Europe and Central Asia (CEECA) sectors. In Western Europe, the operator had previously tied-up with four (AC Milan, AS Roma, Torino and Sassuolo) Serie A teams in Italy. Now the Serie A teams tally is up to five teams after a new sponsorship deal with Salernitana while Serie B side Palermo have also boarded the bandwagon. Pontus Lindwall, the CEO of Betsson AB, said the scheduling of the FIFA World Cup this year – which is happening in the middle of the domestic calendar – had been one of the factors in their Q3 growth as European leagues opened earlier than usual.
“We saw a continued positive development during the third quarter with high growth and profitability for the Group as a whole. Betsson reported new records for revenue and operating profit, driven by both sports betting and casino. The organic growth was 35% compared to the corresponding quarter last year, again generated mainly by the regions Latin America and Central and Eastern Europe and Central Asia (CEECA). Another growth factor in the quarter was high sportsbook turnover, partly because of the early start of the European football leagues in August, due to the upcoming FIFA World Cup in November-December. I am particularly pleased with the high growth overall given the fact that we have not had any revenue from the Netherlands, where our license applications are still being processed.”
Betsson Acquires 80% Shares In KickerTech
After announcing its best ever quarter, Betsson has revealed that it has acquired a majority stake in KickerTech – a Malta-based company B2B company. KickerTech has been providing Mathematical Models, Artificial Intelligence, Data-Driven Development, among other things for the last 12 years and becomes one of many Betsson acquistions over the last few years, with names such as Inkabet and Colbet coming on board.
It will be interesting to see how this acquisition aids Betsson’s B2B performance. The operator reached an agreement with TG Holdings Limited for 80% shares in KickerTech and this move will definitely come with a lot of expectations from KickerTech. The operator will certainly be looking to enhance the features and functionalities of its existing sportsbook. This is where KickerTech’s state-of-the-art trading and modeling tools will come into play.
KickerTech also brings impressive clientele to the table. Intersektion, SoftGamings, Soft2Bet, and Efes Club are some of their clients that are already onboard. ComeOn!, STS, TonyBet, betBonanza, C Bet and True Partners complete this rather competent list.
Last year, KickerTech generated a revenue of approximately $2.6 million and an Operating Income (EBIT) of approximately $1.3 million. Betsson will spend $14 million for the majority shares on a cash basis. The sum will be paid in three installments. The first installment will be worth $6 million immediately, $4 million will be paid within a period of six months thereafter, and the last $4 million within twelve months. The first two installments will be cash only while the third could either be in cash or via shares issued by Betsson AB. Lindwall referred to KickerTech as a ‘proven business’ with a track record of growth.
“We continue to grow our sportsbook business around the world and this deal will both strengthen our position as one of the leading B2C sportsbook operators in the market and complement our highly competitive B2B sportsbook proposition. We are acquiring a proven business with a track record of growth in client base, sportsbook turnover and revenue in the past years. The acquisition will contribute sportsbook functionality, tech development capabilities and new B2B clients. I am very pleased to welcome the new team and clients to the Betsson Group.”
