Betsson (BETS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of EUR 271.5 million, up 15% year-over-year, and all-time high operating income (EBIT) of EUR 64.1 million, marking the tenth consecutive quarter of EBIT growth, driven by high customer activity and major football tournaments.

• Active customers rose 25% to 1.4 million, and deposits increased 15% year-over-year to EUR 1,427 million.

• B2C operations were the main growth driver, with significant contributions from newly regulated markets, especially Peru and Latin America.

• Secured new local licenses in Peru and expanded sports partnerships, including a four-year sponsorship with Inter Milan and continued sponsorship of Boca Juniors.

• Upgraded to AAA in MSCI ESG ratings, reflecting strong ESG performance.

Financial highlights

• Q2 revenue: EUR 271.5 million (+15%); operating income (EBIT): EUR 64.1 million (+18%), with an EBIT margin of 23.6%, the highest since 2018.

• Gross profit was EUR 177 million (65.1% margin); sportsbook revenue hit a record EUR 78.4 million, up 13% year-over-year; casino revenue grew 16% to EUR 191.1 million, representing 70% of total revenue.

• Operating cash flow was EUR 75.8 million, with cash and cash equivalents at EUR 263.9 million at period end; net cash position at EUR 93.1 million and equity ratio at 61%.

• Q2 net income was EUR 44.4 million; basic EPS EUR 0.33.

• Marketing spend stable at 16%-22% of B2C revenue.

Outlook and guidance

• Q3 2024 started strong, with average daily revenue up 20.5% compared to Q3 2023, supported by major football tournaments; management sees continued growth opportunities in H2 2024, focusing on geographic expansion and product development.