Betsson, a global leader in online gaming, set a record when it closed its third quarter of 2023 with remarkable numbers. What’s more, Betsson broke its own revenue records yet again.
This achievement comes on the heels of strong performances across both its sports betting and casino verticals, alongside significant geographic expansion and strategic acquisitions. Betsson’s Q3 revenue reached €236.9 million, slightly surpassing its previous record of €236.8 million from Q2. Compared to Q3 2022, when revenue was €200.3 million, this is an impressive 18.6% year-over-year growth.
This quarter marked new highs for Betsson in various areas of its business, with CEO Pontus Lindwall attributing much of the growth to its casino division. He also emphasised the positive impact of the BetFirst Group acquisition on Betsson’s sports betting revenues. Lindwall noted, "Betsson’s third quarter 2023 featured continued high customer activity, strong financial development and further investments in product and new markets.”
Casino Performance Sets New Records
Casino has long been Betsson’s crown jewel, and in Q3, it reached new heights. Casino revenue hit €172.1 million, a significant driver of Betsson's year-over-year revenue growth. Turnover from casino operations was equally robust at €8.29 billion, only slightly below the record €8.36 billion turnover from Q2. These record-breaking numbers have cemented casino as Betsson’s primary revenue source, contributing to approximately 72% of the overall quarterly revenue. For example, instant casino platforms grow in popularity every day with their fast withdrawals and higher winning limits. Many players choose these sites because they don’t want to wait for days for their money, which is often the case with some traditional casinos.
Mobile activity continues to dominate the casino segment, accounting for €144.9 million—or 84%—of total casino revenue. This growth was bolstered by Betsson’s release of 327 new casino games, 24 of which are exclusively available through its platforms. These exclusive titles not only attract new players but also keep Betsson's current user base engaged and returning for fresh experiences.
Sports Betting Sees Steady Growth and Integration of BetFirst Group
While casino dominates Betsson’s revenue, sports betting remains an important growth area, especially with the integration of BetFirst Group, which Betsson acquired in June 2023. Q3 was the first full quarter of BetFirst's operations under Betsson, adding further revenue and customer activity to Betsson’s portfolio. Sports betting revenue reached €63.3 million, up 2.4% from the previous year, while gross turnover increased by a substantial 23.7%, reaching €1.31 billion.
One of the key highlights for Betsson’s sports betting business this quarter was the rollout of its sportsbook solution with Bethard in September 2023. The addition of BetFirst to Betsson’s sports betting arsenal has contributed not only to revenue growth but also to an enhanced product lineup. CEO Lindwall talked about the significance of these efforts, stating, “B2B is an important part of Betsson’s growth strategy, and work continues to strengthen the B2B offering.” This reflects Betsson’s commitment to serving both direct consumers and business partners.
Geographic Performance Highlights
Betsson’s geographic expansion strategy has proven effective, particularly in Central and Eastern Europe and Central Asia (CEECA), which remains a crucial market for the company. Revenue from the CEECA region rose by 23% year-over-year to €97.0 million, driven by growth in countries like Croatia, Greece, Georgia, Latvia, and Estonia. In addition, Betsson secured a new online casino licence in Serbia during Q3, which promises further growth opportunities within the region.
Latin America also recorded a strong performance, with revenue climbing 33.2% to €51.7 million. This growth was largely fueled by activity in Argentina and Colombia, where the demand for online gaming continues to rise. However, it was not all positive for Betsson’s geographical segments, as revenue from the Nordics slipped by 14.3% to €46.1 million due to declining performance in Sweden and Finland.
Western Europe proved to be another standout region for Betsson in Q3, with revenue jumping by 56.9% to €39.2 million. The substantial increase was attributed to expansion in Italy and the integration of BetFirst in Belgium. Betsson's position in Western Europe was further strengthened when it secured an online sports betting licence in France.
The one notable absence remains the Netherlands, where Betsson temporarily withdrew its licence applications due to delays in the certification process. This cautious approach reflects Betsson’s strategic patience as it awaits more favourable conditions in the Dutch market.
Strong Net Profit and EBIT Growth
Financially, Betsson’s Q3 was a milestone quarter. Operating costs rose by 5.5% to €100.6 million, with personnel expenses as the largest contributor at €34.8 million. Despite the rise in costs, Betsson reported €56.0 million in earnings before interest and tax (EBIT), a significant 45.8% increase from 2022 and the highest quarterly EBIT in Betsson’s history. This figure, according to Lindwall, was bolstered by the successful integration of BetFirst and the ongoing strength in casino revenues.
After accounting for €5.2 million in finance costs, pre-tax profit reached €50.8 million, up by 44.7% year-over-year. Betsson paid €4.6 million in income tax, resulting in a net profit of €46.2 million—a remarkable 41.7% increase from Q3 2022. EBITDA was also up by 41.8%, reaching €68.9 million for the quarter, reinforcing the company's overall financial stability and profitability.
Year-to-Date Performance Reflects Strong Growth Trajectory
Betsson’s year-to-date (YTD) figures are equally impressive, showcasing sustained growth throughout 2023. Revenue for the nine months ending on 30 September totaled €696.3 million, representing a 25.1% increase from the same period in 2022. Casino revenue rose by 32.8% to €489.3 million, while sports betting revenue increased by 11.2% to €200.0 million, further illustrating the balanced growth across Betsson’s main product lines.
Operating expenses for the first nine months of 2023 were €313.1 million, up 16.7% from the previous year. Nevertheless, Betsson’s EBIT stood at €153.5 million, a significant milestone and testament to the company’s cost-effective growth strategies. With finance costs totaling €9.6 million, Betsson's pre-tax profit for the period was €143.9 million—a notable 62.1% increase year-over-year. After paying €14.1 million in taxes, Betsson’s YTD net profit reached €129.7 million, up 58.0% from last year. EBITDA for the nine-month period climbed by 57.4% to €190.8 million, marking a highly profitable year so far.
New Partnerships and Expansions
One of the standout collaborations in Q3 was with ESA Gaming, an innovative games provider. This multinational agreement will initially see ESA Gaming’s portfolio—featuring slots, crash content, and its proprietary EasySwipe™ games—available on Betsson brands Betsafe and Jalla Casino in Estonia. The partnership is expected to expand to additional Betsson brands in Lithuania later this year.
For ESA Gaming, this partnership offers a gateway to Betsson’s broad customer base. As ESA Gaming’s Chief Commercial Officer Thomas Smallwood remarked, “Betsson Group is a global brand that has an excellent reputation for entertainment, and we’re delighted to initially take our games live with two of its brands in Estonia.” ESA Gaming’s focus on unique, engaging gaming experiences aligns well with Betsson’s commitment to delivering diverse options for its users.
Betsson’s Marit Ellul, Casino Manager, echoed this sentiment, highlighting the value of ESA Gaming’s portfolio for Betsson’s diverse player demographics in Estonia and beyond. With plans for further expansion, both companies anticipate long-term mutual benefits as they continue to strengthen their positions in regulated markets.
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