All time high profit driven by stable and scalable business model
QUARTER APRIL - JUNE 2021
Group revenue was SEK 1,751.6 (1,532.8) million, an increase of 14%. Organic increase of 24%.
Casino revenue decreased by 5%. Sportsbook revenue increased by 125% and the sportsbook margin was 8.5% (6.9%).
Operating income (EBIT) was SEK 383.4 (217.7) million, an increase of 76%, the EBIT margin was 21.9% (14.2%).
Net income was SEK 337.9 (192.9) million, corresponding to SEK 2.54 (1.40) per share.
Operating cash flow was SEK 570.7 (343.9) million.
Active customers increased by 25% to 1,027,635 (820,512).
Acquired 50% of JDP Tech Ltd and 35% of Strive Platform Ltd.
The Annual General Meeting approved dividend to shareholders of SEK 3.68 per share, corresponding to SEK 502.9 million.
'All time high profit driven by stable and scalable business model'
The second quarter is proof of the strength of our business model. We have achieved an all time high profit based on our scalability and geographic spread, we have strong growth in Latin America, and we have strengthened our B2B-offering through the agreements that have been entered with Strive Platform Limited and Masterpiece Gaming.
During large international sporting events such as the CONMEBOL Copa América in football and the Euro 2020 the group have offered entertaining, competitive, and secure products. The ability to take advantage of these big sporting events is connected to the constant development of functions in the sportsbook to improve customer experience. We have also increased the exposure of Betsson's brand, especially in selected countries in Latin America, which has attracted new customers in the region. The successes connected to both CONMEBOL Copa América and the Euro 2020 also paving the way for next year's World Cup in football. Important reasons behind us being able to reach an all time high profit are the strong sportsbook activity, primarily driven by the football tournaments, high sportsbook margins, and positive gross margin effect as a result of a larger share of total revenue coming from the sportsbook.
The strength in our business model is coming from a stable and adaptable technology platform enabling economies of scale as our business grows and local knowledge of each market that enables us to quickly adjust our offerings based on changing customer behaviors.
Increased market share in key markets
During the quarter, we gained market share in many important markets, not least in our home market Sweden, but also in the Baltics and Croatia. Establishments in new markets is also bearing fruit, not least in LatAm which has performed strongly thanks to marketing activities in selected markets. Betsson is now the market leader in Peru and in Brazil a marketing campaign has gone viral by a sponsorship of the 'world's worst' football team. Betsson was also the official regional sponsor of CONMEBOL Copa América, which contributed to strong growth in new active customers in the region during the quarter. Our overall business is performing well but we see potential challenges coming up, often based on local initiatives to regulate markets.
Continued investments in the United States
Investments in the US market are continuing. In April we invested in a strategic ownership in a new Player Account Management system, the Strive Platform, and Betsson's sportsbook has now been integrated into the platform. In my view, this combination makes the US investment even more exciting. However, choosing to use Strive instead of one of the pre-certified platforms means that the original schedule for the launch of our B2C offering through Betsafe in Colorado will be slightly postponed. Our assessment now is that the planned launch in the second half of 2021 will be moved to the first quarter of 2022. The background to this is that the platform needs to be tested and certified, which can only happen after all components, such as PAM system, sportsbook, app and more, are fully developed. However, the advantages of being able to launch our offering on a modern platform outweigh the fact that we must postpone our launch.
Successes in our B2B business
The investment in Strive was not the only thing that strengthened our B2B offerings during the quarter. The agreement we entered into with Masterpiece Gaming Limited, a subsidiary of the commerce & ventures segment of German media group ProSieben Sat.1, also shows that we have a competitive and attractive sportsbook. The agreement primarily concerns Masterpiece Gaming's launch of an online gaming offering on the German market and is an important and clear signal that we are following our growth strategy and strengthening our international B2B partnerships.
PRESENTATION OF THE INTERIM REPORT
At 10:00 CEST today 22 July, Betsson invites analysts, investors and media to participate in the results presentation of the second quarter. The results 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 the link or phone, see details below.
Sweden: +46 85 664 27 05
UK: +44 333 300 92 60
US: +1 631 913 1422 PIN US: 60179150#Webcast link: