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

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

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

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(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.)