A prominent gaming enterprise, Betsson AB, announced robust financial results for the second quarter of 2023, with revenue escalating by 27% year-over-year. This remarkable expansion propelled their overall revenue for the quarter to €236.8 million.
The corporation’s earnings before interest, taxes, depreciation, and amortization (EBITDA) witnessed an even more substantial surge, soaring by 72% to attain €67.6 million. This profitability leap was primarily fueled by the exceptional performance of their endeavors in the Scandinavian region.
Betsson has maintained an upward trend since 2019, exhibiting consistent revenue gains even amidst the obstacles presented by the COVID-19 outbreak. While their land-based gaming activities were affected during this period, their digital gaming division thrived.
Geographically, Betsson’s revenue sources are relatively diversified. They derive a substantial portion of their income from the Scandinavian region (22%) and the rapidly developing Latin American market (22%). Central, Eastern Europe, and Central Asia (CEECA) constitute their most significant market, accounting for 43% of total revenue. Western Europe represents the remaining 11%.
The company’s income is predominantly generated by its casino operations, which underwent a 35% year-on-year increase, reaching €165.1 million in the second quarter of 2023. This underscores the sustained triumph and expansion of Betsson’s casino offerings. Their sports wagering segment also fared well, yielding €69.5 million in revenue during the quarter.
Betsson experienced a robust second quarter in 2022, as revenue surged to €61.6 million, up from €50.3 million in the corresponding period the previous year. This performance contributed to a strong initial six months of 2023, during which they announced €458.7 million in revenue, representing a 29% year-over-year increase. Profitability also witnessed a substantial rise, with EBITDA (earnings before interest, taxes, depreciation, and amortization) climbing by 68% to €121.9 million.
This expansion transpired despite a minor decline in engaged customers. Betsson documented 1.1 million active users in Q2 2023, marking a 10% reduction compared to the equivalent timeframe last year. Although Betsson’s active user figures have varied each quarter, the first half of 2023 observed marginally fewer wagering patrons relative to the first half of 2022.
The potential impact of this user decrease on future earnings remains to be determined. A more comprehensive understanding of Betsson’s customer loyalty will become apparent following the publication of their third-quarter report.