Gaming operator Betsson has provided its financial health report for the second quarter of the year. Its Latin American gaming operations are on fire; however, its European activity isn’t doing so well.
Betsson reported revenue of €186.3 million (US$189.5 million) for the second quarter of 2022. Most of its verticals are on the upswing, especially its sports betting operations.
As a result of a stronger-than-expected response in LatAm, this became the driver of the company’s success. During the quarter, it registered a year-on-year increase of 86.2%, closing at €45.7 million (US$46.53 million).
LatAm Up, Western Europe Down
The LatAm results, coupled with solid performances in Central and Eastern Europe and Central Asia, led to organic growth of 13%. Betsson views these markets as having the greatest potential, as they still have room for large online growth.
Central and Eastern Europe, combined with Central Asia, contributed €61.1 million (US$62.2 million), an improvement of 23.4% over last year. However, the company saw drops in both the Nordics and Western Europe. The Nordics provided €51.2 million (US$52.12 million) and Western Europe, €24.8 million (US$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 gaming,” said Betsson CEO Pontus Lindwall.
Western Europe’s contributions declined by 40%. This, explained Betsson, was due to its exit from the Dutch market to appease regulators. However, there’s a chance that it may return in the future.
In general, sports betting was the biggest source of revenue for the company. Gross turnover jumped 20% with a margin of 8.3%. This contributed significantly to Betsson reporting record revenues for LatAm, as well as Central and Eastern Europe and Central Asia.
By The Numbers
With most regions performing well, Betsson saw overall revenue that was 7.8% higher than it was a year ago. Sportsbook revenue increased by 22.4% to provide €61.6 million (US$62.7 million). On the other hand, casino revenue contributed €122.2 million (US$123.4 million). However, that was only €1.6 million (US$1.62 million) more than a year earlier.
As a result, gross profit closed at €118.8 million (US$120.95 million), a 2.6% increase. On the other hand, operating expenses amounted to €89.6 million (US$91.18 million), for a final operating income of €29.2 million (US$29.71 million). Compared to the second quarter of last year, this was a 22.7% drop.
After deducting marketing, personnel costs and additional expenses, as well as tax, the net income for the quarter was €28.6 million (US$29.09 million). That equates to a drop of 14.1% from Betsson’s net income in the second quarter of last year.
For the first six months of the year, Betsson is seeing mixed results. The six-month period produced revenue of €356.4 million (US$260.86 million), a year-on-year increase of 7.9%. However, gross profit lost 3.5%, closing at €225.8 million (US$229.72 million).
However, total net income is down 13.4%, to €49.4 million (US$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).
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