Latin American game a huge hit for Betsson

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Posted: July 21, 2022, 11:55 a.m.

Last update: July 21, 2022, 11:55 a.m.

Gaming operator Betsson has provided its financial health report for the second quarter of the year. Its gambling operations in Latin America are on fire; however, its European business is doing less well.

Pontus Lindwall, CEO of Betsson
Betsson CEO Pontus Lindwall. He provided an update on the financial health of the gaming company, which is showing strong results in Latin America. (Picture: SBC News)

Betsson reported revenue of €186.3 million ($189.5 million) for the second quarter of 2022. Most of its verticals are up, especially its sports betting operations.

Following a stronger than expected response in LatAm, this became the driving force behind the company’s success. During the quarter, it posted a year-over-year increase of 86.2%, closing at €45.7 million ($46.53 million).

Latin America up, Western Europe down

LatAm results, coupled with strong performance in Central and Eastern Europe and Central Asia, led to organic growth of 13%. Betsson sees these markets as having the greatest potential, as they still have room for strong online growth.

Central and Eastern Europe, combined with Central Asia, contributed €61.1 million (US$62.2 million), an improvement of 23.4% year-on-year last. However, the company saw declines in both Nordics and Western Europe. The Nordic countries provided 51.2 million euros ($52.12 million) and Western Europe, 24.8 million euros ($25.25 million).

The group’s organic growth was 13%, mainly driven by Latin America, Central and Eastern Europe and Central Asia, where we see long-term growth potential as these markets still have a low share of online games.“said Betsson CEO Pontus Lindwall.

Contributions from Western Europe fell by 40%. This, Betsson explained, was due to its exit from the Dutch market to appease regulators. However, there is a chance that he could return in the future.

In general, sports betting was the main source of income for the company. Gross revenue jumped 20% with a margin of 8.3%. This contributed significantly to Betsson recording record revenues for LatAm, as well as Central and Eastern Europe and Central Asia.

In numbers

With most regions performing well, Betsson reported overall revenue 7.8% higher than a year ago. Sports betting revenue rose 22.4% to €61.6 million ($62.7 million). On the other hand, casino revenue contributed 122.2 million euros ($123.4 million). However, that was only €1.6 million ($1.62 million) more than a year earlier.

As a result, gross margin closed at €118.8 million (US$120.95 million), an increase of 2.6%. On the other hand, operating expenses amounted to 89.6 million euros (91.18 million dollars), for a final operating result of 29.2 million euros (29.71 million dollars). Compared to the second quarter of last year, this is a decrease of 22.7%.

After deducting marketing costs, personnel costs and additional expenses, as well as taxes, the net result for the quarter amounts to 28.6 million euros ($29.09 million). This equates to a 14.1% decline in Betsson’s net income in the second quarter of last year.

For the first six months of the year, Betsson sees mixed results. The six-month period generated revenue of €356.4 million ($260.86 million), a 7.9% year-over-year increase. However, gross profit fell 3.5%, closing at 225.8 million euros ($229.72 million).

However, total net income was down 13.4% to €49.4 million ($50.27 million). At the same time, operating income is €52.8 million (US$53.71 million), but operating expenses are €173 million (US$176 million). US dollars).

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