Betsson AB (publ) interim report April - June 2023

Another record quarter for Betsson with continued high customer activity and strong financial performance

QUARTER APRIL - JUNE 2023

• Group revenue was EUR 236.8 (186.3) million, an increase of 27%. Organic increase of 43%.
• Casino revenue increased by 35%. Sportsbook revenue increased by 13% and the sportsbook margin was 8.2% (8.3%). 
• EBITDA was EUR 67.6 (39.3) million, an increase of 72%. The EBITDA margin was 28.5% (21.1%).
• Operating income (EBIT) was EUR 54.5 (29.2) million, an increase of 87%. The EBIT margin was 23.0% (15.7%).
• Net income was EUR 46.9 (28.6) million, corresponding to EUR 0.37 (0.21) per share.
• Operating cash flow was EUR 89.2 (37.8) million.
• Net debt was EUR -138.8 (-19.8) million.
• Active customers decreased by 10% to 1,119,803 (1,246,719).
• Acquisition of the Belgian B2C operator betFIRST.

CEO COMMENT

I am pleased to look back at another record quarter for Betsson with continued high customer activity and strong financial performance. During the second quarter of 2023, revenue increased by 27 percent and operating profit (EBIT) by 87 percent, compared to the corresponding quarter last year. New revenue records were set in both B2C and B2B. The EBIT margin increased to 23.0 (15.7) percent.

Betsson's long history of profitable growth is based on diversified revenues, both in terms of products and geographic markets. As before, the business generates strong cash flows, and the robust balance sheet constantly facilitates new growth initiatives. It is the mix of investments in new markets, organically and via acquisitions, that has contributed to the good financial performance over time. The geographical diversification continues to serve Betsson well and revenues increased in all regions during the quarter. In particular, Central and Eastern Europe and Central Asia (CEECA) continued to show high growth.

In June, the leading Belgian sports betting operator betFIRST was acquired and at the same time a new strategic partnership was entered into with the publicly listed French casino operator Groupe Partouche to offer online casino games in some regulated markets, with Belgium being the first country for this collaboration. These strategic initiatives together enable a competitive offering in sports betting and casino for the Belgian market. The investment in Belgium resonates well with Betsson's ambition to deliver long-term profitable growth.

In June, an important sponsorship was entered into with the long-standing Argentinian football club Boca Juniors, previously home to perhaps the greatest player ever in football history, Diego Armando Maradona. The sponsorship, one of the largest ever for Betsson, means that the club's iconic match shirt will feature the Betsson logo during local and international matches until the end of 2024. The collaboration with Boca Juniors strengthens Betsson's brand and rapid expansion in Argentina and throughout Latin America, and we will be following the team's development with excitement together with fans and customers.

We look forward with confidence to the second half of the year, with continued investments into geographic expansion and constant further development of Betsson’s offering to future-proof our competitiveness.

PRESENTATION OF THE INTERIM REPORT

At 09:00 CEST today 20 July, Betsson invites analysts, investors and media to participate in the presentation of the interim report. The report will be presented by CEO Pontus Lindwall and CFO Martin Öhman. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via webcast or phone.

Link to the webcast: https://tv.streamfabriken.com/betsson-q2-2023  
For more information about how to participate in the telephone conference, please visit: https://financialhearings.com/event/46179

For further information, please contact:
Pontus Lindwall, President and CEO Betsson AB
[email protected]

Martin Öhman, CFO Betsson AB
[email protected]

This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on 20 July, 2023.

About Betsson AB
Betsson AB (publ) is a holding company that invests in and manages fast-growing companies within online gaming. The company is one of the largest in online gaming in Europe and has the ambition to outgrow the market, organically and through acquisitions. This should be done in a profitable and sustainable manner, and with local adaptations. Betsson AB is listed on Nasdaq Stockholm (BETS B).