Casino demand drives Betsson to record-breaking 2023 performance
The company's revenue increased by 22% to €948.2m, with organic growth of 40%. Casino revenue, which accounted for 72% of total revenue in Q4, rose by 25.1% to €182.8m. Sportsbook revenue, which represented 27% of total revenue in Q4, declined by 5.2% to €67.0m, mainly due to the comparison with the 2022 Fifa World Cup. Other products, such as poker and bingo, contributed €2.1m, or 1% of total revenue.
Betsson's B2B revenue, which came from system delivery to other operators, increased by 33.4% to €65.1m, or 26% of total revenue. The company attributed the growth to improved products and the acquisition of 80% of KickerTech Ltd, a UK-based sports betting platform provider.
Betsson's EBITDA grew by 52% to €262.7m, with a margin of 27.7%. Operating income (EBIT) increased by 60% to €210.5m, with a margin of 22.2%. The company's chief executive, Pontus Lindwall, said he was confident about the future prospects of Betsson, thanks to its financial strength, proprietary technology, attractive customer offering and dedicated employees.
Betsson's largest market was Central & Eastern Europe and Central Asia (CEECA), which generated €106.8m, or 42% of total revenue, with a growth of 25.2%. The company highlighted the strong performance of Greece, which achieved record revenue in Q4, as well as the continued development of Croatia.
Western Europe was the second-largest market, with €41.7m, or 17% of total revenue, and a growth of 61.8%. The company noted the positive impact of Italy and Belgium, where it acquired BetFirst, a leading online casino operator. The Nordics was the third-largest market, with €46.4m, or 18% of total revenue, and a decline of 12.6%. The company said the main reason for the decrease was the lower activity in Sweden, where it faced increased competition and regulation.
Betsson's profitability was affected by higher cost of services, which amounted to €86.7m, or 34.4% of total revenue. The main driver of the increase was higher gaming taxes, as the share of locally regulated revenue rose to 45.9% from 34.2% in 2022. Marketing expenses, on the other hand, decreased to €32.4m, or 17% of B2C revenue, due to lower spending compared to the 2022 Fifa World Cup.
Betsson also announced several strategic moves in 2023, including the entry into the Serbian market, the launch of a new brand in Spain, and the partnership with Big Bola Casinos in Mexico.
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