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Betsson Publishes Interim Report for Q1 2022

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Betsson AB has published its interim report for the first quarter of 2022.

Highlights

  • Group revenue was EUR 170.2 (157.4) million, an increase of 8%. Organic increase of 14%.
  • Casino revenue decreased by 5%. Sportsbook revenue increased by 45% and the sportsbook margin was 8.3% (7.2%).
  • EBITDA was EUR 33.4 (35.8) million, a decrease of 7%. The EBITDA margin was 19.6% (22.7%).
  • Operating income (EBIT) was EUR 23.6 (27.3) million, a decrease of 13%. The EBIT margin was 13.9% (17.3%).
  • Net income was EUR 20.9 (23.7) million, corresponding to EUR 0.16 (0.17) per share.
  • Operating cash flow was EUR 26.9 (32.3) million.
  • Active customers increased by 33% to 1,256,449 (948,109).

CEO’s Comments

“Revenue growth driven by continued good momentum in the sportsbook and through geographic diversification”

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Some years ago, Betsson conducted an extensive review to capitalise on growth opportunities on the gaming market that would maintain profitability. The review resulted in the following strategic cornerstones: growth in existing markets, growth in new markets, strategic additions and acquisitions and investment in Business to Business, B2B. Thanks to a goal-oriented work from our employees, we have been able to take advantage of the growth opportunities identified, which has resulted in increased revenue and healthy profitability.

Betsson’s revenue increased during the first quarter by 8 percent (14 percent organic) to EUR 170.2 (157.4) million. Once again, new records were set for sportsbook revenue and in several individual markets. It has been said many times before, geographic diversification makes Betsson’s business less sensitive to disruptions in individual markets.

The launch in March of the proprietary sportsbook in the United States was an important milestone in Betsson’s continued global expansion. The US investment is primarily focused on presenting the US adapted sportsbook to other operators within the framework of the B2B offering. More specifically, we are initially using the Business to Consumer (B2C) offering in Colorado as a showcase for the sportsbook. Many months of hard work from the product and technology teams were required to create a competitive sports product for the American market.

Starting this quarter, developments in Latin America will be reported as a separate region in our financial reports. The region is developing very satisfactorily. Market presence has also been strengthened in Latin America through the launch of our offering in both the City and Province of Buenos Aires, Argentina. To support the region’s growth, Betsson has built up a regional hub with central functions to serve local markets based on their respective conditions. The assessment is that these markets are still in their early stages in many respects and that growth opportunities for the coming years continue to be positive.

Although Betsson has several highlights to celebrate in the past quarter, the geopolitical developments in the surrounding world are concerning. The Russian invasion of Ukraine has led to incredible human suffering and created a high level of uncertainty in many countries. Belarus’ active choice to get involved in the conflict on the Russian side led to Betsson’s decision to return the local license and completely shut down the operations that was building up in the country. The conflict has also brought that Betsson-contracted developers in Ukraine could in some cases be evacuated to Malta and Budapest, in other cases to less dangerous areas of Ukraine. Betsson sets the safety and health of its employees at the highest priority and is therefore carrying out ongoing efforts to ensure their security.

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During the quarter, further efforts were made to promote responsible gaming. Through increased training efforts and earlier customer interaction et cetera, the trend of the share of red-flagged customers has decreased during the last years.

Looking ahead, we are seeing more undertakings on the horizon. Our ambition is to further strengthen our presence in North America by operating under a new license in the Ontario region in Canada starting this summer. We also aim to launch in Mexico together with our local partner Big Bola Casino in 2022.

Applications to operate in the Netherlands under the new license model were submitted during the quarter in line with the Group’s plan.

All in all, the year has been off to a good start as there are many important activities that we look forward to during the remainder of 2022.

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Allaster Gair confirmed as Bacta’s Director of Communications

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UK trade association Bacta has announced the appointment of Allaster Gair to the position of Director of Communications, effective 7th July.

Gair, who replaces Executive Director George McGregor who announced in March that he would be stepping down from Bacta joins from global advisory consultancy the DGA Group where he spent 5-years most recently as Senior Associate.

Looking ahead to driving the trade association’s communications programme he stated: “I’m absolutely thrilled to be joining Bacta at such a pivotal time for the industry. It represents a sector with deep roots in local economies, and I’m looking forward to proactively championing its value and telling its story.”

He noted: “The key challenge is changing outdated perceptions and I’ll be working hard to ensure stakeholders understand the modern, responsible nature of the industry and how it strongly contributes both economically and socially.

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“The sector needs to clearly and consistently influence opinion, build trust, and inform policy in what is a complex landscape. I see huge potential to go on the front foot and tell the sector’s positive stories. In particular I’m keen to highlight its beneficial impact, commitment to safer gambling, and its importance to the wider economy.”

Bacta’s outgoing President John Bollom said: “I am delighted to welcome Allaster who was without doubt the stand-out candidate.

“The comms challenges that we face are significant not least combatting the media onslaught that’s being directed at the Adult Gaming Sector and enhancing the ways in which Bacta engages with its members.

“I would like to place on the record my thanks to George McGregor who ends a 21-year association with Bacta.

“His knowledge and experience have been a great asset and he has been a source of wise counsel during what has been an extremely challenging period for the industry.“

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Incline Gaming Marketing strengthens executive team with internal promotions

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Incline Gaming Marketing, the provider of specialist digital marketing services for the global regulated gaming market, has strengthened its executive team with two internal promotions.

The first sees Joanne (Jo) Dennis become Chief Commercial Officer, having been Director of UK/EMEA for the past 14 months.

Jo became part of the Incline team after the business acquired Random Colour Animal, which she co-founded, bringing with her more than 25 years of experience in brand, marketing and commercial strategy.

As CCO, Jo has been tasked with overseeing business development, account management and partner success worldwide.

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She will lead the full commercial lifecycle for Incline’s suite of services, developing ambitious sales and growth strategies and overseeing their execution.

Her remit also centres on expanding Incline’s client portfolio across the globe and driving expert account direction to strengthen partnerships and deliver measurable value.

The second promotion sees Oren Langburt, former VP of CRM Marketing, promoted to Chief Marketing Officer, expending his remit to lead the CRM and User Acquisition divisions globally.

As part of the founding Incline team, Langburt has played a pivotal role in the company’s growth trajectory. He has been instrumental in scaling the agency’s CRM managed services business, shaping a best-in-class offering grounded in Incline’s deep industry expertise.

Langburt brings more than 15 years of marketing experience, including leadership roles at some of the biggest companies in the industry, including the likes of FanDuel.

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As CMO, he will focus on unifying performance strategy across acquisition and retention ensuring clients see the full impact of Incline’s integrated services model.

Jo DennisChief Commercial Officer at Incline Gaming Marketing, said: “It’s an exciting time to be taking on the CCO role and growth journey for the business.

“We have achieved huge success across The Americas, Europe, Africa and beyond with our user acquisition, CRM and creative design services, and are now taking this momentum to the next level. 

“We are the only digital marketing and creative agency that is focused on, and specialises in, the regulated global gambling industry. Our deep level of multi-market expertise, and operator-side experience within the Incline team, gives us the edge. 

“In the role of CCO, my focus is on providing even more value to our new and existing partners, driving performance-led success across our full suite of digital marketing and creative activities.” 

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Oren Langburt, Chief Marketing Officer at Incline Gaming Marketing, added: “I’m incredibly excited to step into this role and continue building on the momentum we’ve created at Incline. We have an exceptional team and I’m energized by the opportunity to help shape the future of how we drive further growth for our partners. My focus will be on empowering our teams, deepening client partnerships, and continuing to push the boundaries of what performance marketing in igaming can be.”

The appointments come ahead of the Canadian Gaming Summit, which takes place from 17 – 19 June, where Incline Gaming Marketing will be in attendance; as well as IGB Live in London from 2 – 3 July.

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Ezugi ups the tempo with EZ Speed Bingo 90, a fast-paced bingo experience

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Ezugi has unveiled EZ Speed Bingo 90, an innovative speed version of the classic bingo game with shortened wait time between rounds.

EZ Speed Bingo 90 stays true to the traditional 90-ball bingo format and rules, while each round plays out in just one minute (compared to a typical four to five minutes for standard EZ Bingo). Players place their bets on randomly generated virtual 3×5 bingo tickets. As numbers are generated, they automatically get marked on the tickets, creating a smooth, seamless and intuitive experience for players.

With multilingual number announcements and locally adapted versions, including regionally themed backgrounds, EZ Speed Bingo 90 allows operators to offer a culturally relevant and immersive experience for their players globally. EZ Speed Bingo 90 is available for direct integration via Ezugi or Evolution’s One Stop Shop (OSS) integration engine.

Pang Wee Goh, Chief Commercial Officer at Ezugi, said: “EZ Speed Bingo 90 is a great example of how we continue to refresh and re-energise classic game formats with player-focused innovation and technology. The game stays true to the essence of 90-ball bingo while offering faster and more exciting gameplay that meets today’s demand for rapid, engaging entertainment.”

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Goh continued: “During the soft launch, we received fantastic feedback from operators, especially on the localised versions that reflect player preferences across different regions. EZ Speed Bingo 90 reflects our core mission: to deliver smart, exciting and accessible gaming experiences that stand out. Whilst EZ Speed Bingo 90 is fast-paced and offers short, dynamic sessions, it’s easy to pick up. We are confident this modern twist on a classic game will be a big hit with traditional bingo fans and new generations of players.”

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