Q4 2024 Betsson AB Earnings Call Transcript
Key Points
- Betsson AB (STU:V72) reported a 22% increase in group revenue and a 23% increase in operating income (EBIT) year over year for Q4 2024, reaching all-time high levels.
- The company achieved record figures in customer deposits, gaming turnover, and revenue from both casino and sportsbook segments.
- Betsson AB (STU:V72) surpassed EUR1 billion in revenue for the first time in 2024, marking a 17% increase from the previous year.
- The company's scalable business model and cost control efforts resulted in an EBIT margin increase to over 23% for the year.
- Betsson AB (STU:V72) continues to expand geographically, with significant growth in Latin America and the CEECA region, contributing to its strong market position.
- Net income and earnings per share only increased by 6% and 2% respectively, due to a higher corporate tax rate from the application of the Pillar two rules.
- The Nordic region experienced a 14% decline in revenue compared to the previous year, primarily due to lower activity in the casino product.
- The company has stopped accepting customers in Norway and other markets that show no signs of moving towards local regulation, which could impact future revenue.
- Increased marketing and personnel expenses were noted, with marketing spend rising by EUR9 million and personnel costs increasing due to geographic expansion and acquisitions.
- The share of revenue from locally regulated markets increased, which led to higher gaming taxes and impacted the cost of services provided.
Good morning, everyone and welcome to Betsson's earnings presentation for the fourth quarter and full year of 2024. I am Pontus Lindwall, the President, and CEO of Betsson, we've made presenting today is also our CFO Martin Ohman who has a little bit of a cough.
I'm very pleased to report yet another strong quarter for Betsson with continued high customer activity and record figures across the board. In the fourth quarter group revenue increased by 22% and operating income or EBIT increased by 23% year over year. This means new all-time high levels for group revenue and EBIT at EUR307 million and EUR70 million, the EBIT margin increased to 22.9% in the quarter.
New quarterly records were also set for customer deposits and gaming turnover as well as casino and sportsbook revenue. Customer deposits increased by 14% year over year, Casino turnover increased by 6% year over year, and sportsbook turnover increased by 2% year over year.
Casino revenue was up 17% year over year and sportsbook revenue was up 36
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