Q3 2024 Betsson AB Earnings Call Transcript
Key Points
- Betsson AB (STU:V72) reported new quarterly records in revenue and EBIT, marking the 11th consecutive quarter of sequential EBIT growth.
- Customer deposits increased by 20% year over year, with casino turnover up 14% and sportsbook turnover up 19%, indicating strong customer activity.
- The share of revenue from locally regulated markets increased significantly from 45% to 58%, showcasing successful geographic diversification.
- Betsson AB (STU:V72) secured new sponsorship deals, including a jersey sponsorship in the Greek top football league and a global sponsorship with Premier Paddle.
- The company holds a AAA rating by MSCI ESG ratings and renewed its G4 accreditation for responsible gaming for the 20th year in a row.
- The Nordic region experienced a revenue decline of 1.8% compared to the previous year, primarily due to lower casino product activity.
- Increased costs of services provided and a decrease in gross profit margin were noted, mainly due to higher gaming taxes and increased affiliate and partner commission marketing costs.
- Personnel expenses rose by EUR4 million due to increased employee numbers, salary revisions, and performance-related compensation.
- Depreciation and amortization costs increased by EUR3 million, driven by one-off items including retroactive amortization on trademarks.
- The company's operating cash flow was negatively impacted by changes in working capital, primarily due to increased customer withdrawals.
I'm Welcome to Betsson's earnings presentation for the third quarter of 2024. I'm Pontus Lindwall, President and CEO of Betsson and presenting together with me here today is also our CFO, Martin Ohman.
Let's start by looking at some key figures for the third quarter. I'm very pleased to report new quarterly records in revenue and EBITs, which means the 11th quarter in a row with sequential growth on the EBIT level for Betsson.
The high customer activity continued during the quarter with all time high levels in customer deposits and turnover, customer deposits increased by 20% year over year, casino turnover increased by 14% and sportsbook turnover increased by 19% year over year, active customers were up 10% year over year. Group Revenue increased by 18% and EBIT increased by 15%. Growth was broad with continued high activity in the regions, Latin America, Western Europe and CEECA. The share of revenue from locally regulated markets continues to increase and went up from 45% to 58%.
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