Q2 2025 Betsson AB Earnings Call Transcript
Key Points
- Group revenue increased by 12% year-over-year, driven by strong growth in Latin America and Western Europe.
- Sportsbook revenue grew by 15% with a favorable margin of 9.5%, higher than the previous year.
- Betsson AB (BTSBF) launched its flagship brand in Georgia and Lithuania, expanding its international presence.
- The company signed a three-year jersey sponsorship with Belgium's Club Brugge, enhancing brand visibility.
- Revenue from locally regulated markets increased to 66% of total revenue, up from 55% last year, indicating a strong compliance strategy.
- The number of active customers remained flat due to market exits in Africa, impacting growth potential.
- Operating cash flow decreased to EUR 41 million from EUR 76 million the previous year, affected by changes in working capital.
- Revenue from the Nordic region decreased by 28% due to reduced marketing investments.
- Personnel expenses increased by 20% year-over-year, outpacing revenue growth and impacting profitability.
- The EBIT margin slightly decreased to 22.7% from 23.6% last year, partly due to higher gaming taxes in regulated markets.
Good morning, everyone, and welcome to Betsson's presentation of the second-quarter 2025. I'm Pontus Lindwall, the President and CEO of Betsson. With me today is also our CFO, Martin Ohman.
Betsson is well positioned to capture global growth opportunities in the structurally attractive market for online gaming and in the second quarter of 2025, we continued to deliver value to customers, partners and shareholders.
Group revenue increased by 12% and operating income increased by 8% compared to the same quarter last year, which then included the European Championship and Copa America in football. Revenue growth was mainly driven by continued strong growth in Latin America and Western Europe, where revenue increased around 35% and reached new record levels.
In LATAM, Peru and Argentina was the main drivers, and I'm very pleased to see how we continue to strengthen our leading market positions in these countries. The Sportsbook margin in the past quarter was pretty favorable at 9.5%, driving 15% revenue
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