Betsson delivers record earnings results as leadership targets dominance of new markets

Betsson AB has lauded its capacity to match operational scale demands, after the online gambling group posted record-breaking Q2 2021 earnings of SEK 472 million (€46m).

Publishing its interim 2021 trading results (period ending 30 June), Betsson recorded Q2 group revenues to SEK 1.75 billion (€175m) – up 14% on corresponding 2020 results of SEK 1.53 billion.

Q2 trading’s results were attributed to Betsson’s sports betting unit registering a 125% revenue uplift to SEK 510 million, driven by strong customer activity with UEFA Euro 2020 and CONMEBOL Copa America football markets.

Strong football trading saw Betsson break the 1 million active customer mark during Q2, helping the company offset a 5% decrease in online casino revenues to SEK 1.22 billion (Q1: SEK 1.28bn).

It should be noted that the performance of its flagship online casino unit was compared with tough Q2 2020 comparatives, which saw boosted player activity from lockdown due to the cancellation of sports events across all markets.

Betsson Group Chief Executive Pontus Lindwall said: “The strength in our business model is coming from a stable and adaptable technology platform enabling economies of scale as our business grows and local knowledge of each market that enables us to quickly adjust our offerings based on changing customer behaviours.” 

Year-to-date trading results saw Betsson achieve group revenues of SEK 3.34 billion (€325m) – up 13% on corresponding H1 2020 results of SEK 2.95 billion.

Betsson’s H1 gross profits were registered at SEK 2.2 billion (€195m), secured against a period expenditure of SEK 1.54 billion primarily attributed to marketing (SEK 600m) and personnel costs (SEK 480m).

Closing its interim accounts, Betsson declared a group-wide operating income (EBIT) of SEK 660 million, up 38% on H1 2020’s SEK 478 million, which helped it to enhance its operating cash balance to SEK 898 million (H1 2020: SEK 666m).

Providing a forward outlook, Lindwall outlined that the group would prioritise its strategy on the three areas of “growth in existing markets, expansion into new markets and development of the B2B offering with focus on the in-house developed sportsbook”.

He suggested that Betsson was the best-placed firm to advance in underpenetrated new markets, as it moves to expand its South American profile within the markets of Peru, Chile, Mexico and Brazil, as well as in East Africa with the launch of Betsafe Kenya.

The acceleration in new markets was deemed as a necessary growth component to help Betsson outride changing regulatory headwinds across mature western European markets, in which Betsson projects a slower growth profile.

Further directives will see Betsson boost the development of its proprietary systems to help its multi-market expansion. The company has invested in the technologies of  Strive Platform Limited and Masterpiece Gaming. 

Lindwall added: “During the quarter, we gained market share in many important markets, not least in our home market Sweden, but also in the Baltics and Croatia.

“Establishments in new markets are also bearing fruit, not least in LatAm which has performed strongly thanks to marketing activities in selected markets.

“The second quarter is proof of the strength of our business model. We have achieved an all-time high profit based on our scalability and geographic spread, we have strong growth in Latin America, and we have strengthened our B2B-offering through the agreements that have been entered with Strive Platform Limited and Masterpiece Gaming.”