Sweden's Betsson Q3 revenue rises 10% on casino growth

By Reuters News


Overview

  • Sweden online gaming group's Q3 revenue rose 10% yr/yr, driven by casino growth

  • Q3 EBITDA fell 23% yr/yr as margin narrowed to 19.4%

  • Q3 net income declined compared to prior year


Outlook

  • Company expects an intensive end to the year with a full pipeline of activities

  • Betsson says it is well positioned to return to earnings growth

  • Company sees continued positive momentum in Latin America, supported by investments in products and marketing


Result Drivers

  • LATIN AMERICA GROWTH - Revenue growth in Latin America, especially Peru and Argentina, was driven by high customer activity and marketing tied to the FIFA World Cup

  • CASINO PRODUCT - Casino revenue growth offset lower sportsbook margin, supporting overall revenue increase

  • RHINO ACQUISITION - Acquisition of Rhino Entertainment Group contributed positively to revenue and earnings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

EUR 326.50 mln

Q3 Net Income

EUR 28.20 mln

Q3 EBIT

EUR 46.10 mln

Q3 EBITDA

EUR 63.40 mln

Q3 EBITDA Margin

19.40%

Q3 EBIT Margin

14.10%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the casinos & gaming peer group is "buy."

  • Wall Street's median 12-month price target for Betsson AB is SEK95.00, about 1.3% above its October 21 closing price of SEK93.75

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Oct 20 - Betting giant Flutter to axe up to 1,400 jobs in UK and Ireland as tax hike bites

  • Oct 21 - French betting group FDJ United's 9M revenue falls on fewer jackpots and tax hikes; cuts FY outlook

  • Oct 21 - Las Vegas Sands Q3 operating profit misses estimates as Marina Bay Sands revenue falls


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.