Latin America is now Betsson’s largest market

Latin America is now Betsson’s largest market

Pontus Lindwall, CEO at Betsson, said the business saw progress in most areas throughout the quarter, and spoke highly of its sportsbook progress.

Lindwall said that Betsson’s second quarter featured continued good growth with all-time high revenue and further investments to support their expansion. Latin America, Central and Eastern Europe and Central Asia have a low share of online gaming, so we see long-term growth potential as these markets still have a low share of online gaming.

The sportsbook’s gross turnover increased by 20% in the quarter and the margin was 8.3%, leading to all-time high revenue.

Betsson now has the largest market in Latin America. It had revenue of 45.7m in the second quarter, up 86.2% from a year earlier. Revenue from Central and Eastern Europe and Central Asia increased by more than 20%.

Betsson said they were all-time record revenues for both regions.

Revenue from the Nordics fell by 5.7% to 51.2m. Betsson said that the decline in the 2020 European Championship was due to high activity levels andfavourable results.

Betsson withdrew from the Dutch market to comply with licence measures outlined by the Dutch regulators, which resulted in a decline in revenue in Western Europe of 24.8m.

Lindwall said that the country’s market is marked by low levels of channelisation, due to extensive restrictions, high taxes, and an unclear licensing process. Betsson applied for one online casino licence in Germany through its subsidiary, according to Lindwall.

The revenue in the quarter was higher than in the previous quarter. sportsbook revenue rose by 22.4% and made up the remaining 61.6m, while casino revenue rose by 1.6m yearly.

The gross profit for the year was 118.8m, an increase of 2.6%, and the total cost of services was 67.5m, an increase of 10m.

The operating income for the quarter was 29.2m, as the total operating expenses came to 88.6m. This was lower than in the second quarter of the previous year.

The highest expenses throughout the quarter were marketing at 30.5m, followed by personnel costs and other external expenses at 29.8m and 25.8m respectively.

The net income totaled 28.6m, down 14.1% from the previous year, as a result of financial income and expenses, which added 2.2m to the total.

Cash flow from operating activities came to 37.8m, which included 1.1m that came from changes in working capital. Betsson said that there was a positive effect from the collection of VAT in the second quarter of 2021.

Betsson’s net debt is 19.8m, which puts the company in a net cash position, as opposed to Q2 2021, where net debt was 14.6m.

The earnings before interest, tax, depreciation and amortisation for the quarter were down 16% from a year ago.

Cash flow from investing activities resulted in a loss of 14.8m. Betsson acquired Inkabet, a Latin American sportsbook, last year.

Sportsbook turnover reached an all-time high, totaling 991.3m, a yearly rise of 20.5%. In Q2 2021, there were several high-profile sporting events.

Betsson has revenue of 356.4m for the year to date, a rise of 7.9% compared to the same period last year. The gross profit was down by 3.5%. There was a loss of 11.6% in total earnings.

Net income fell by 14.3% to 49.4m. For the year, operating income is 52.8m and operating expenses are 173m.

There were close to 25 million registered customers in the second quarter, while the number of active customers dropped by 0.7%.

Betsson issued a number of bonds adding up to 90m under a three-year contract at an interest rate of 6.5% in June. The bonds are going to mature in 25 years.

Summary:

Swedish online gaming company Betsson has reported a 14.1% year-on-year decline in net income to 28.6 million in the second quarter of 2021. The company’s revenue rose by 7.8% year-on-year to 122.2 million, while EBITDA revenue rose by 22.4% year-on-year to 61.6 million. Betsson’s gross profit rose by 2.6% year-on-year to 118.8 million.