Betsson’s Group Q3 revenue was EUR 280.1 (237.6) million, an increase of 18%. Organic increase of 51%.

Casino revenue increased by 22%. Sportsbook revenue increased by 8% and the sportsbook margin was 7.4% (7.3%). EBITDA was EUR 80.3 (68.9) million, an increase of 17%. The EBITDA margin was 28.7% (29.0%).

Operating income (EBIT) was EUR 64.5 (56.0) million, an increase of 15%. The EBIT margin was 23.0% (23.6%).Net income was EUR 43.4 (46.2) million and earnings per share was EUR 0.31 (0.35).Operating cash flow was EUR 62.5 (44.9) million. Net debt was EUR -128.3 (-65.5) million.Active customers increased by 10% to 1.4 (1.2) million.

CEO COMMENT: Yet again new record levels in revenue and EBIT in the third quarter/. The high customer activity continued during the third quarter with new record levels in customer deposits and gaming turnover. Yet again Betsson reports quarterly records in revenue and EBIT, which means the eleventh quarter in a row with sequential growth on the EBIT level. 

Group revenue increased by 18 percent and EBIT increased by 15 percent. Growth was broad based with sustained high activity in the regions Latin America, Western Europe and Central and Eastern Europe and Central Asia (CEECA). The share of revenue from locally regulated markets continues to increase and amounted to 58 (45) percent in the quarter.  

The sportsbook margin was 7.4 (7.3) percent during the quarter, which is in line with the average margin over the past eight quarters. I note with pleasure Betsson’s continued involvement in sports during the past quarter. In addition to the important sponsorship deal with Inter, it can be mentioned that the first jersey sponsorship agreement was signed in the Greek top league in football, with the club Crete FC. In addition, the sponsorship contract with the Greek basketball club AEK Betsson BC was extended. Betsson also sponsored the ATP Swedish Open tennis tournament in Båstad in July, which was a great crowd success as Rafael Nadal returned for the first time since his victory in 2005 and made it all the way to the final in what seems to have been his last ATP tournament ever. 

In the area of product and technology, further development of our platform continued while a large number of new casino games were released during the quarter. New sports were launched in our betbuilder function within the sportsbook, as well as new features to strengthen cross-selling between sports betting and casino. A lot of preparatory work was done before this summer’s major football tournaments, so I am particularly pleased to see the 100 percent uptime for the sportsbook during all the matches in both the Euros and Copa America. In August, an agreement was entered with the French gaming operator FDJ about the acquisition of Sporting Solution, which for many years has been an important supplier of trading, pricing, and sports betting risk-management services to Betsson’s sportsbook. The acquisition will primarily contribute with faster and more flexible odds setting, stronger risk management and enhanced scalability for the sportsbook product for both B2C and B2B. 

Our business continues to generate strong cashflows and the balance sheet is solid. In September, we 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, which is half the credit spread compared to the refinanced bond.

After several years of delay, Brazil will introduce a new gaming regulation in January 2025 and during the past quarter we submitted our application for a local license. The potential market in Brazil is large while competition is expected to be tough with many operators willing to invest large amounts in marketing. 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.

The fourth quarter is off to a positive start with 14 percent higher daily revenue than the average for the full fourth quarter last year. Hence there is reason to feel confidence about the last quarter of the year, which is usually also the seasonally strongest quarter for customer activity.