Betsson has published its interim report for the third quarter of the year, posting record-breaking revenue levels ahead of its launch in Brazil’s regulated market.

Betsson’s Q3 Was Underpinned by High Activity in Key Markets

Betsson reported group revenue of EUR 280.1 million ($302.6 million) for the period, representing an increase of 18% from EUR 237.6 million. This figure also marks an organic increase of 51%. Casino revenue in particular was up 22%. Sportsbook revenue, on the other hand, increased by 8%, at a 7.4% margin.

Executives attributed the increase in revenue to sustained high activity in key markets, such as Western Europe, LATAM and CEECA. The company emphasized that 58% of its revenue came from regulated markets.

EBITDA for the period stood at EUR 80.3 million ($86.7 million), representing an increase of 17% from EUR 68.9 million in Q3 2023. EBITDA margin, on the other hand, was 28.7%. Betsson further reported operating income (EBIT) of EUR 64.5 million ($69.7 million) up 15% year-on-year, at a 23% margin. This is notably the eleventh quarter in a row with sequential growth on the EBIT level.

Net income for the period was EUR 43.4 million ($46.9 million), representing a decline from EUR 46.2 million in Q3 2023. Earnings per share reached EUR 0.31 million ($0.33), marking a slight decrease.

The company closed the quarter with an operating cash flow of EUR 62.5 million ($67.5 million) and a net debt of EUR -128.3 million (-$138.6 million). The number of active customers, on the other hand, increased by 10% to 1.4 million.

In terms of year-to-date results, group revenue stood at EUR 799.8 million ($863.9 million), up 15% YOY. EBITDA was EUR 229.5 million ($247.8 million), marking an increase of 20%. The EBITDA margin for the nine-month period was 28.7%.

Operating income for January-September reached EUR 186.5 million ($201.5 million), up 21% YOY. The EBIT margin, meanwhile, was 23.3%.

The overall net income for the period increased slightly from EUR 129.7 million in 2023 to EUR 130.6 million ($141.1 million). Earnings per share for the nine-month period, however, were slightly down to EUR 0.94 ($1.02) (EUR 0.99 for the prior year period).

YTD operating cash flow stood at EUR 188.3 million ($203.4 million), representing a slight increase. Additionally, in May, the company leadership approved a dividend to shareholders of EUR 88.5 million ($95.6 million), or EUR 0.645 ($0.7) per share.

CEO Lindwall Is Optimistic for Q4

CEO Pontus Lindwall commented on the results, highlighting some of the company’s achievements in Q3 2024. He noted that the company continued to be involved with professional sports, as attested to its sponsorship deal with Inter and the agreement with the Greek top-flight club Crete FC. In addition to that, Betsson served as a sponsor to the ATP Swedish Open tennis tournament in Båstad in July.

In terms of its product portfolio, Betsson launched a betbuilder function and new features that reinforced cross-selling between sports betting and casino gaming.

In August, Betsson entered into an agreement to acquire Sporting Solutions from the French lottery powerhouse FDJ. This deal will allow the former operator to offer faster and more flexible odds setting, stronger risk management and enhanced scalability, Lindwall pointed out.

In September, Betsson refinanced the 2022/2025 bond with a new three-year senior unsecured bond of EUR 100 million at a floating rate of 325 basis points above EURIBOR.

Lindwall finally commented on Brazil’s upcoming gaming regulation, highlighting its tremendous potential. However, Betsson, which has already applied for a license, is wary of the intense competition it must face in this highly-anticipated market.

As always for Betsson, we will carefully evaluate and compare the likely returns on marketing in Brazil with other countries in order to find the right mix and allocation of investments between our markets. The focus on efficient capital allocation is and has always been an important part of our strategy to create shareholder value.

Pontus Lindwall, CEO, Betsson

The CEO concluded that Q4 is off to a good start, providing his team with confidence about the FY results.