English

Betsson AB (publ) year-end report 1 January – 31 December 2022

Report this content

QUARTER OCTOBER - DECEMBER 2022

  • Group revenue was EUR 220.6 (157.5) million, an increase of 40%. Organic increase of 48%.
  • Casino revenue increased by 27%. Sportsbook revenue increased by 76% and the sportsbook margin was 7.3% (6.0%). 
  • EBITDA was EUR 51.1 (30.4) million, an increase of 68%. The EBITDA margin was 23.2% (19.3%).
  • Operating income (EBIT) was EUR 40.0 (20.8) million, an increase of 92%. The EBIT margin was 18.1% (13.2%).
  • Net income was EUR 32.7 (18.7) million, corresponding to EUR 0.26 (0.14) per share.
  • Operating cash flow was EUR 75.5 (13.4) million.
  • Net debt was EUR -65.7 (2.5) million.
  • Active customers increased by 23% to 1,424,794 (1,161,683).

FULL YEAR 2022

  • Group revenue was EUR 777.2 (657.7) million, an increase of 18%. Organic increase of 27%.
  • EBITDA was EUR 172.4 (153.7) million, an increase of 12%. The EBITDA margin was 22.2% (23.4%).
  • Operating income (EBIT) was EUR 131.2 (117.6) million, an increase of 11%. The EBIT margin was 16.9% (17.9%).
  • Net income was EUR 114.7 (103.9) million, corresponding to EUR 0.87 (0.78) per share.
  • Operating cash flow was EUR 178.7 (143.6) million.
  • The Board of Directors proposes to the AGM that EUR 59.7 (50.3) million, corresponding EUR 0.436 (0.367) per share, to be distributed to shareholders through an automatic share redemption program.

CEO COMMENT

"Strong finish to the best year ever for Betsson, driven by high activity and new customers"

We can look back at the best year ever for Betsson with strong growth and profitability, driven by disciplined capital allocation, geographical diversification and investments in new markets, as well as continuous strengthening of the tech platform and product offering. For the full year, revenue increased by 18 percent and EBIT increased by 11 percent. Organically, revenue increased by 27 percent for the year.
 
The fourth quarter was dominated by the largest sports event of the year, the Football World Cup. In sports terms, it was perhaps one of the best tournaments of all times, with both real surprises and favourites playing some incredibly exciting games in the knock-out stage. As expected, for Betsson the World Cup turned out to be the largest sports event ever and contributed to new records for all possible key performance indicators in the quarter, such as revenues (despite a significantly lower sportsbook margin than in the previous quarter), EBIT, sportsbook turnover, casino turnover, active customers and customer deposits.

In the fourth quarter, organic revenue growth for the Group was 48 (27) percent year over year, with an EBIT margin of 18.1 (13.2) percent. Geographically, once again growth was driven by the regions Latin America and CEECA (Central and Eastern Europe and Central Asia). Above all, Latin America recorded new highs on most key parameters. Our strategic investments in the region continue at full speed – in Peru, the naming rights sponsorship for the highest football league, Liga 1 Betsson, was extended another four years, and in Chile, a new naming rights deal was agreed with the highest football league, which will be named Campeonato Betsson. Both leagues kicked off at the end of January, and it is gratifying to see the continued engagement in football together with clubs, fans and customers.
 
Further development of Betsson’s tech platform is constantly taking place and the investments of the past years have paid off. Within product and tech, the focus was also on the World Cup during the quarter. All targets were met regarding scalability, quality and stability, at times in exceptional circumstances with very high player activity. As an example, during the final customers placed three times as many bets as during the Champions League final, which is otherwise often the busiest event for the sportsbook during the entire year. Some new functionality was also added, such as boosted odds for live betting, which was frequently used during the tournament. Additionally, a native app was launched for the Greek market.
 
Finally, I would also like to take the opportunity to thank our employees for all the hard work put in during the past year. Together we will continue to deliver the best customer experience in the gaming industry and create long-term value for our shareholders. Even if the macroeconomic and geopolitical situation in the world remains uncertain, we remain optimistic about 2023 thanks to our geographical diversification, focus on profitable growth, strong balance sheet and our sustainable gaming solutions.

PRESENTATION OF THE YEAR-END REPORT

Today at 9:00 CET, Betsson invites analysts, investors, and media to participate in the presentation of the year-end results. The results will be presented by CEO Pontus Lindwall and CFO Martin Öhman. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via webcast or phone.
Link to the webcast: https://ir.financialhearings.com/betsson-financial-hearing-q4-2022
For more information on how to participate in the telephone conference, please visit https://financialhearings.com/event/43209

For further information, please contact:
Pontus Lindwall, President and CEO Betsson AB
pontus.lindwall@betssonab.com

Martin Öhman, CFO Betsson AB
martin.ohman@betssonab.com

This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 14 February, 2023.

About Betsson AB
Betsson AB (publ) is a holding company that invests in and manages fast-growing companies within online gaming. The company is one of the largest in online gaming in Europe and has the ambition to outgrow the market, organically and through acquisitions. This should be done in a profitable and sustainable manner, and with local adaptations. Betsson AB is listed on Nasdaq Stockholm (BETS B).

Subscribe

Documents & Links