Betsson Becomes Largest Market in LatAm in Q2
Betsson seeks more acquisitions in Latin America after a 32% growth in regional revenues during Q2.
Key Takeaways
- América Latina representa el 36% de los ingresos de Betsson en el Q2.
- Betsson tiene una nueva línea de crédito de €75 millones para M&A.
- Los ingresos en los países nórdicos cayeron un 17%.
- Betsson reportó una disminución del 8% en el beneficio bruto.
Betsson has reported that Latin America has become its largest market during the second quarter, accounting for 36% of total revenues of €310.2 million for the period. Revenues in the region grew by 32% year-on-year, reaching €112 million, buoyed by record highs in Argentina, Peru, and Colombia. CEO Pontus Lindwall noted that "it had been a goal for the company for some time for LatAm to become our largest market." Although not right from the start, they invest in markets with good profitability prospects, such as Latin America. "We see more structural growth coming from LatAm than from, for example, Western Europe," he added.
M&A Prospects in LatAm
Lindwall mentioned that they have a new credit line of €75 million to finance working capital and future acquisitions. "Our strategy is to grow both organically and through M&A," he stated. "Historically, we have made acquisitions that complement the business we already have and have acquired complete businesses in markets where we are not present." LatAm is a region where they see "more potential and more possibilities" in countries where they still have no presence.
Decline in Revenues from Nordic Countries
In the Nordic countries, revenues fell by 17% due to reduced marketing spend in Sweden and Denmark. "The markets are quite competitive and acquiring new customers is costly, and the regulations are quite strict," Lindwall expressed. Comparing the effectiveness of their investment, they prefer other markets over the Nordics.
Q2 Results of Betsson
Despite strong revenue figures, boosted by the first half of the World Cup tournament, the decline in B2B revenues affected the profitability of the quarter. Active clients in the B2C business increased by 31.9% to 1,825,487, but customer deposits decreased by 7% compared to the same period last year, reaching €1.38 billion. The gross profit was €177.5 million, an 8% year-on-year decrease.
Technical Improvements and AI
Lindwall highlighted technical and product improvements during the World Cup, including an expanded capacity to handle more traffic. He also mentioned investments in AI tools to enhance Betsson's operational capabilities, showing a wide application but with more development potential.
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Frequently Asked Questions
¿Cuál es el enfoque de Betsson en América Latina?
Betsson se está centrando en expandirse en América Latina debido a su fuerte crecimiento y potencial de rentabilidad, convirtiéndose en su mayor mercado durante el Q2.
¿Por qué ha disminuido el ingreso de Betsson en los países nórdicos?
Los ingresos en los países nórdicos han caído un 17% debido a la reducción en el gasto de marketing y las estrictas regulaciones en Suecia y Dinamarca.
¿Qué mejoras hizo Betsson durante la Copa Mundial?
Betsson amplió su capacidad técnica y mejoró la experiencia del usuario para manejar un tráfico cinco veces mayor y facilitar las apuestas durante la Copa Mundial.
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About the author
Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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