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.
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.
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).