Betsson Group has posted strong results in Q1 2021 with net profit going up even though the Group suffered setbacks in Norway and Germany.
Betsson’s Results Improve Despite Setbacks
With the first quarter of the year in the books, Betsson Group is happy to report that it has hit a bull’s eye so far as its financial targets for the period go, notwithstanding a few hiccups. The company has been able to achieve financial and geographical growth despite the ongoing pandemic that has introduced new challenges and restrictions along the way.
In a Q1 financial update, Betsson AB stated that its revenue had reached SEK1.592.8 billion ($191.3 million) in the three-month period ended on March 31. Net operating income reached SEK276.1 million ($33.05 million).
The company has been able to drive steady forays into key markets, including Croatia, Italy, and the Baltics, but faced some pushback in Germany and Norway. Croatia seemed to grow the fastest over the period, backed by a strong performance in the iGaming vertical. During the official update, Betsson commented:
“On several markets, such as Italy, Baltics, Peru, and Chile, we continue to deliver strong growth and good profitability. This is very encouraging. However, we are not fully satisfied as we have experienced difficulties in a few other markets, for various reasons.”
Revenue in online casinos increased by 16%, with sportsbooks clocking in a small 2% increase and the company’s active customer base expanding to 948,109 from previously 680,938 active users.
Net income amounted to SEK 240.1 million ($28.71 million) over the period, and cash flow increased to SEK 327.7 million ($39.23 million). In the official statement, Betsson explained that some targets had not been completely satisfied, with Germany proving a harder market to navigate following the market’s re-regulation.
New Markets Tapped, Growth Outlook Set
That resulted in decreased revenues from the market even though the company managed to secure sports betting licenses in the country early in March. Another difficult market proved Norway, where the company had difficulties identifying a viable payment solution but has been running using an in-house platform nevertheless.
The company strengthened its promotional efforts in Latin America and secured the naming rights for Liga 1 in Peru. Betsson proceeded by setting up new operations in Colombia and Chile and signaling its determination to continue working in the region.
Commenting on the group’s plans for the market in the United States, Betsson president and chief executive Pontus Lindwall said that the company is readying up for a sportsbook launch in Colorado, as well as the launch of a B2B sportsbook offering.
Before Betsson plans to launch in the Centennial State, however, Lindwall said that Betsson’s sportsbook would first be integrated with TG Lab’s US-focused PAM.