Betsson buys majority of shares in B2B sportsbook business; posts revenue up 18% in “best quarter ever”
Online sportsbook and casino operator Betsson announced Wednesday that it has acquired 80% of the shares in KickerTech. Through a subsidiary, the company has become that firm’s majority shareholder, acquiring the shares from TG Holdings for a total sum of $14 million in a move set to complement its “B2B sportsbook proposition.” Furthermore, the brand has reported its “best quarter ever” with revenue of €200.3 million ($201.2 million) in Q3, up 18% year-over-year.
KickerTech has a team of 50 professionals building advanced odds models, trading technology, and sportsbook features, noted Betsson. The team is based in Vilnius, Lithuania. In the last 12 months, ending on 30 September 2022, the acquired business generated revenue of approximately EUR 2.6 million and EBIT of approximately EUR 1.3 million.
According to the company, the total sum will be paid in three installments, of which $6 million is to be paid in cash immediately. A further $4 million will be paid in six months’ time – also in cash – while the final $4 million will be paid in 12 months’ time, either in cash or shares issued by Betsson.
Of the latest acquisition, Pontus Lindwall, CEO of Betsson AB, commented: “We continue to grow our sportsbook business around the world and this deal will both strengthen our position as one of the leading B2C sportsbook operators in the market and complement our highly competitive B2B sportsbook proposition.”
“We are acquiring a proven business with a track record of growth in client base, sportsbook turnover, and revenue in the past years. The acquisition will contribute to sportsbook functionality, tech development capabilities, and new B2B clients. I am very pleased to welcome the new team and clients to the Betsson Group,” he added.
Furthermore, the operator has recently reported its best quarter ever, driven by both sports betting and casino gambling. Group revenue was $207.7 million, an increase of 18% over the same period last year. Q3 saw an organic increase of 35%, while casino revenue increased by 8%.
Furthermore, sportsbook revenue saw a significant increase of 45%, and the sportsbook margin was 8.3%, higher than the average of the last eight quarters of 7.7%. Net income was $32.6 million, and operating cash flow was $38.5 million. Moreover, the company revealed active customers increased by 7% to 1,056,400.
“We saw a continued positive development during the third quarter with high growth and profitability for the group as a whole. Betsson reported new records for revenue and operating profit, driven by both sports betting and casino,” Lindwall noted.
“The organic growth was 35% compared to the corresponding quarter last year, again generated mainly by the regions Latin America and Central and Eastern Europe and Central Asia (CEECA),” the executive added. Furthermore, in regard to the company’s license applications in the Netherlands, he said that it is still being processed.
Earlier today @BetssonAB published its interim results for Q3 2022 – Betsson’s best quarter ever, driven by both sports and casino.
— Betsson AB (@BetssonAB) October 26, 2022
Another growth factor in the quarter was high sportsbook turnover, partly because of the early start of the European football leagues in August, due to the upcoming FIFA World Cup in November-December.
“To illustrate the momentum that we are experiencing in the sportsbook, it’s worth mentioning that eight of the ten best days ever in terms of turnover have occurred since the beginning of the third quarter this year,” the CEO explained.
Regarding its growth strategy, the company said it is “based on geographic expansion and diversification.” In line with this, in August an online casino offering was launched on the regulated market in Mexico.
“This is a soft launch so far, but marketing will increase during the fourth quarter and especially during 2023 and we see considerable potential for this market in the long term given the size of the economy, the population, and the low level of online gaming penetration in the country,” Lindwall stated.
Additionally, the company saw a high level of activity on the product and technology side during the quarter, as its horse race betting product, under the Racebets brand, was strengthened and a new sportsbook app was launched for Betsson on several key markets.
In our Q3 2022 interim report we’ve seen that Betsson continues to deliver on its growth strategy, , which is based on geographic expansion and diversification.
📰Press release: https://t.co/lujg1IdSFo
📄Report (PDF): https://t.co/yTgK3F9BsK
— Betsson AB (@BetssonAB) October 26, 2022
During the quarter, a new sports betting product was launched in Italy, and the company entered into two new sponsorships with the football clubs Salernitana and Palermo. “This means that we now have sponsorships with six geographically diverse Italian teams – in addition to the two clubs mentioned also with Milan, Roma, Torino, and Sassuolo,” according to Lindwall.
“Betsson’s business has historically been relatively unaffected by the general business cycle and so far, we have not seen any signs of weaker demand due to the general macroeconomic situation. We are excited as we look forward to the rest of the fourth quarter and the World Cup in football, which has a good chance of becoming the biggest sports event ever for Betsson,” the CEO concluded.