Latest News
BETSSON AB (PUBL) INTERIM REPORT APRIL – JUNE 2022
All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region
QUARTER APRIL – JUNE 2022
• Group revenue was EUR 186.3 (172.8) million, an increase of 8%. Organic increase of 13%.
• Casino revenue increased by 1%. Sportsbook revenue increased by 22% and the sportsbook margin was 8.3% (8.5%).
• EBITDA was EUR 39.3 (46.6) million, a decrease of 16%. The EBITDA margin was 21.1% (27.0%).
• Operating income (EBIT) was EUR 29.2 (37.8) million, a decrease of 23%. The EBIT margin was 15.7% (21.9%).
• Net income was EUR 28.6 (33.3) million, corresponding to EUR 0.21 (0.24) per share.
• Operating cash flow was EUR 37.8 (56.3) million.
• Net debt was EUR -19.8 (14.6) million.
• Active customers increased by 21% to 1,246,719 (1,027,635).
CEO COMMENT
“All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region”
Betsson’s second quarter featured continued good growth with all-time high revenue and further investments to support our expansion. The Group’s organic growth was 13 percent, mainly driven by Latin America and the CEECA region (Central and Eastern Europe and Central Asia), where we see long-term growth potential as these markets still have a low share of online gaming.
The sportsbook business showed a strong development in the quarter – gross turnover increased by 20 percent and the margin was 8.3 (8.5) percent – leading to all-time high revenue. Some of the football World Cup qualifiers in June ended in particularly favourable outcomes for Betsson and contributed positively to the margin in the quarter. Casino gross turnover also reached a new quarterly all-time high, while revenue came in at the second-best level ever.
Betsson’s strategy is based on diversified revenues from existing and new markets, and in June Betsson became majority owner of the local gaming operator Betbonanza in Nigeria. Since last year, the regulated market in Germany is marked by a low level of channelisation, due to extensive restrictions, high taxes, and an unclear licensing process. During the quarter, a decision was taken to only apply for one online casino license in Germany. On the sports side, Betsson continues to offer betting on horses through the Racebets brand and has a sportsbook license which is currently not operated.
The B2B initiatives continue according to plan, and discussions are currently being held with several potential sportsbook customers in both North America and other parts of the world. The Group’s ownership in the technology platform provider Strive, focused on North America, increased from 35 to 40 percent during the quarter. Strive provides a new, purpose-built and modern US iGaming platform, i.e. Player Account Management system (PAM), which supports Betsson’s US strategy.
Operating income (EBIT) amounted to 29.2 (37.8) MEUR, corresponding to an EBIT margin of 15.7 (21.9) percent. The cost increase compared to last year was driven by the general expansion while the change in geographic mix, with a higher revenue share from Latin America and no revenue from the Netherlands, led to a lower realised margin. We continue to invest in product and tech development to secure that we have a competitive product for all our markets. Our sportsbook offering was strengthened in motor sports, table tennis and esports, resulting in a significant increase in the number of live events offered for betting. In Sweden, a new native app was developed for the brand Jalla Casino, and our live casino offering was broadened in Italy. On top of the positive financial development in the second quarter, we also won six industry awards in different categories related to an attractive customer offering and a sustainable business model for gaming.
Betsson’s commitment to football continues. After eleven years of waiting, AC Milan once again were crowned Italian champions and we share the fans’ great joy in recapturing the scudetto. In May, the sponsorship with AC Milan was renewed, which means that Betsson now also becomes exclusive sponsor for the club in Latin America. The region is important for the club with millions of fans and the history of stars like Kaká and Ronaldinho. Further, similarly to last summer Betsson is a proud sponsor of Copa America Femenina 2022, which is the Latin American equivalent of the UEFA Women’s Euro 2022 and takes place during July. The interest in women’s football is growing strongly and the previous championship had more than 20 million TV viewers.
In conclusion, we see that macro and geopolitical factors continue to dominate the world around us, with great uncertainty and concerns around war, inflation, higher interest rates and potentially a coming recession. Despite uncertain capital markets, we recently refinanced our bond until 2025, which gives us financial flexibility to continue investing in both organic growth and selective acquisitions. We continuously monitor the macroeconomic trends but also note that historically Betsson’s business has been relatively unaffected by the general business cycle. The first weeks of July are off to a good start and despite the macro factors, we are rather optimistic as we look ahead to the rest of 2022, which has many planned activities for Betsson, including market launches in Mexico and Ontario, as well as the football World Cup during the seasonally strongest fourth quarter.
Latest News
How mobile gambling has been spearheading growth in the industry
The rise of instantly accessible online platforms has transformed the iGaming world, allowing players to take a flyer on the go, wearing whatever outfit they saw fit instead of donning the obligatory tuxedo to look the part in a glamorous gambling parlour.
The shift from desktop computers to mobile devices ushered in an even more promising era for the industry, further solidifying casino games as a mainstream form of entertainment, one accessible to gamers from all backgrounds. So, let’s explore how mobile gambling has driven growth and innovation in the iGaming industry – changing the game for all players involved.
Jumping on the mobile gaming bandwagon: a profitable and future-proof endeavour
Largely driven by the success of leading companies like Playtech or Evolution Gaming, the iGaming sector has been on a roll lately. According to global data platform Statista, online gambling could reach up to 290.5m users worldwide by 2029. While North America leads the way in user penetration, emerging markets in Asia and Africa contribute significantly to this growth.
In 2023, mobile games accounted for approximately 57% of the global market revenue, bringing together close to 3 billion players. With over 7.2 billion smartphones circulating globally, major industry players could not but seize the opportunity to transition to mobile platforms. As reports show that the average adult spends one-third of their waking hours on their mobile phones, casino operators boast many avenues to boost customer engagement and increase their market shares through mobile apps.
What factors come into play when explaining this mobile gambling boom?
The irresistible appeal of immediate accessibility
Convenience is arguably the main contributing factor to the growth of mobile gambling. Most platforms have adapted their game libraries to work seamlessly on portable devices such as smartphones, tablets, and even smartwatches, whose portability and simplicity of use work wonders for audiences both young and older.
As a case in point, senior citizens are getting increasingly hooked on video games on their phones, whether for social reconnection, cognitive stimulation, or sheer entertainment. Technological advancements have facilitated this smooth transition by optimising gameplay mechanics, sound effects, and graphics for mobile play. In this day and age of short attention spans, many software developers have been rolling out games with less extensive designs to push for increased speed and efficiency, unencumbered by painfully long loading times.
An exciting playground for toying with new technologies
The iGaming industry has consistently been a trailblazer in implementing new technologies, and mobile platforms are the perfect vessels to try new things and test new grounds among an audience mostly receptive to innovative experiences. To enhance player immersion, modern mobile casinos have long begun to leverage emerging technologies to replicate the atmosphere of their land-based counterparts.
Soon, technologies like augmented reality (AR) could integrate with a phone’s camera to bring game elements into the player’s real-world surroundings, making a roulette table pop up in one’s living room. While still in its infancy, virtual reality is also making headways in the iGaming sphere, with some casino games already compatible with VR goggles and headsets. Meanwhile, many developers have understood the key importance of strengthening the social components of their mobile games, capitalising on technology to introduce chat rooms and live messaging features.
Attractive incentives, to boot
Incentive marketing is on the rise, and casinos have perfectly internalised that rewards are the most effective way to pique users’ curiosity – and keep them coming back in the long run. Incidentally, countless mobile casinos provide bonuses catering exclusively to their mobile player pool. Such promotions can often get lost on newcomers, however. For those unsure of which mobile platform to choose, specialised websites offer precious insight and assistance.
First-time players with little gambling experience may grab no deposit bonuses to fund their bankroll with no financial risk attached. Top websites feature advanced filters that make it easy to compare hundreds of expertly curated casino offers. From their withdrawal terms to their game eligibility, the drawbacks and advantages of each promotion are clearly outlined. This way, new users only need to follow the steps laid out to claim their due – and try the most exciting mobile platforms out there.
Mobile casino apps are gaining momentum in the iGaming industry, combining a technological edge with the appeal of convenience and engaging marketing. As players can now dive right into their favourite games whenever they want to unwind, revenue growth in the mobile iGaming sector has barely reached its full potential.
Interviews
Thunderkick’s secret to success: The importance of a localised approach
In our latest Q&A, we sat down with Thunderkick’s Key Account Manager, Andrea Brioschi, to discuss the importance of localisation and the intricacies of the Italian market.
Although Thunderkick is an established provider in Italy, how important is it having a native speaker to build and maintain strong partner relations in the market?
A localised approach is key in any market, but it is particularly important in Italy, where the natives are typically very traditional people. Italians like to communicate in their own language, and it is far easier to forge relationships when you share traditions and can understand cultural references relating to a specific way of life.
Certain marketing strategies that work in other European jurisdictions won’t necessarily be effective in Italy, so having a native managing client relationships is pivotal in enhancing operational efficiency. Like any industry, iGaming is about building and maintaining relationships, and a targeted approach will not only help establish connections, but can also aid in delivering country-bespoke content and marketing campaigns.
In your position working across multiple jurisdictions, what are the differences in how the Italian market operates?
The Italian market is incredibly unique and comes with its own challenges. The strict regulatory guidelines make marketing new products tricky, with various game approval processes in place and numerous certificates required. As a result, the process can sometimes take up to a month, meaning a huge amount of prior planning is necessary in order to meet deadlines.
This is why it’s essential to have someone in place who works within the market, day in, day out. You can no longer navigate the Italian market as a salesperson. Instead, you must have a broad spectrum of knowledge and experience within sales, compliance, and legislation.
How has your position as a native Italian speaker helped resolve previously encountered issues?
Thunderkick’s approach in Italy has allowed us to build relationships with a host of reliable partners, which are crucial when it comes to launching games. Previously, due to the processes in place, games would often be released days, sometimes even weeks later in Italy. With the right coordination and planning, as well as optimised communication, we can work ahead of schedule to obtain certification early, streamlining the product launch process so that games can be released on the same day in Italy as they are across the rest of Europe.
Effective communication is the most important aspect. Having a native speaker means nothing gets lost in translation and the correct message can be relayed from our Italian partners back to the Thunderkick tech and compliance teams, in turn allowing for rapid and efficient problem-solving.
What are the key benefits of adopting a tailored approach to commercial activities in a market and what impact has this had on revenue?
At Thunderkick, we strive to provide the best possible service to our customers. Something which may seem inconsequential, such as having similar experiences growing up, can be more significant than you think in fostering strong relationships. I have the opportunity to really get to know our partners, allowing us to tailor our approach according to their preferences.
It is also necessary to understand what resonates with players in a specific market, paving the way for bespoke content and targeted communications. We can now make predictions about which games will be more successful in Italy and create a marketing campaign across the relevant channels to appeal to the target audience. Ultimately, this tailored strategy is a key factor in amplifying player acquisition, enhancing player experiences, and driving commercial revenue growth. This has been apparent, with Thunderkick’s Italian operations thriving alongside the expansion of the market.
Do you think the success of Thunderkick’s localised approach in Italy will impact future decisions to employ native speakers in targeted markets?
Having seen the impact of our localised operations in Italy, Thunderkick has already taken steps to replicate this strategy. With the emergence of the promising Latin American markets, of which we have recently launched in Mexico with Rushbet and Colombia with Luckia, Thunderkick has taken steps to appoint a Spanish-speaking Account Manager, Ariadna Ölund.
Ariadna will contribute to forming relationships and tailoring our approach in the established Spanish market, as well as across the Atlantic in Latin America. It is difficult to predict where the next hub of iGaming will be, and therefore it is vital to remain flexible and build a diverse team with expertise across global markets.
Latest News
BETBY IMPROVES BETTING EXPERIENCE WITH THE LAUNCH OF UPDATED BET BUILDER
BETBY, a leading sports betting provider, has unveiled an upgraded version of its Bet Builder feature, aimed at enhancing the experience for sports betting enthusiasts worldwide.
The Bet Builder from BETBY allows users to effortlessly combine various markets within the same match, enabling them to create unique, personalized bets based on their own analysis and preferences.
What distinguishes BETBY’s Bet Builder is its exceptional flexibility. The latest version enables players to choose not only classic markets and common statistics like corners and bookings, which are common across all betting platforms, but also markets that depend on extensive statistical data. These include a range of options from offsides and shots on target to throw-ins and total shots at goal.
This enhanced flexibility allows players to combine multiple Bet Builder selections within a single match, spanning 11 sports, including four disciplines from esports.
Sergey Tsukanov, Chief Product Officer at BETBY, commented: “This development reflects our dedication to providing our partners with the Sportsbook features they need to enhance their offerings. Our updated Bet Builder not only enhances the player experience but also creates new revenue opportunities for operators by attracting a wider audience. We are committed to continuous improvement and innovation to ensure a unique and profitable experience for our partners.”
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