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BETSSON AB (PUBL) INTERIM REPORT APRIL – JUNE 2022
All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region
QUARTER APRIL – JUNE 2022
• Group revenue was EUR 186.3 (172.8) million, an increase of 8%. Organic increase of 13%.
• Casino revenue increased by 1%. Sportsbook revenue increased by 22% and the sportsbook margin was 8.3% (8.5%).
• EBITDA was EUR 39.3 (46.6) million, a decrease of 16%. The EBITDA margin was 21.1% (27.0%).
• Operating income (EBIT) was EUR 29.2 (37.8) million, a decrease of 23%. The EBIT margin was 15.7% (21.9%).
• Net income was EUR 28.6 (33.3) million, corresponding to EUR 0.21 (0.24) per share.
• Operating cash flow was EUR 37.8 (56.3) million.
• Net debt was EUR -19.8 (14.6) million.
• Active customers increased by 21% to 1,246,719 (1,027,635).
CEO COMMENT
“All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region”
Betsson’s second quarter featured continued good growth with all-time high revenue and further investments to support our expansion. The Group’s organic growth was 13 percent, mainly driven by Latin America and the CEECA region (Central and Eastern Europe and Central Asia), where we see long-term growth potential as these markets still have a low share of online gaming.
The sportsbook business showed a strong development in the quarter – gross turnover increased by 20 percent and the margin was 8.3 (8.5) percent – leading to all-time high revenue. Some of the football World Cup qualifiers in June ended in particularly favourable outcomes for Betsson and contributed positively to the margin in the quarter. Casino gross turnover also reached a new quarterly all-time high, while revenue came in at the second-best level ever.
Betsson’s strategy is based on diversified revenues from existing and new markets, and in June Betsson became majority owner of the local gaming operator Betbonanza in Nigeria. Since last year, the regulated market in Germany is marked by a low level of channelisation, due to extensive restrictions, high taxes, and an unclear licensing process. During the quarter, a decision was taken to only apply for one online casino license in Germany. On the sports side, Betsson continues to offer betting on horses through the Racebets brand and has a sportsbook license which is currently not operated.
The B2B initiatives continue according to plan, and discussions are currently being held with several potential sportsbook customers in both North America and other parts of the world. The Group’s ownership in the technology platform provider Strive, focused on North America, increased from 35 to 40 percent during the quarter. Strive provides a new, purpose-built and modern US iGaming platform, i.e. Player Account Management system (PAM), which supports Betsson’s US strategy.
Operating income (EBIT) amounted to 29.2 (37.8) MEUR, corresponding to an EBIT margin of 15.7 (21.9) percent. The cost increase compared to last year was driven by the general expansion while the change in geographic mix, with a higher revenue share from Latin America and no revenue from the Netherlands, led to a lower realised margin. We continue to invest in product and tech development to secure that we have a competitive product for all our markets. Our sportsbook offering was strengthened in motor sports, table tennis and esports, resulting in a significant increase in the number of live events offered for betting. In Sweden, a new native app was developed for the brand Jalla Casino, and our live casino offering was broadened in Italy. On top of the positive financial development in the second quarter, we also won six industry awards in different categories related to an attractive customer offering and a sustainable business model for gaming.
Betsson’s commitment to football continues. After eleven years of waiting, AC Milan once again were crowned Italian champions and we share the fans’ great joy in recapturing the scudetto. In May, the sponsorship with AC Milan was renewed, which means that Betsson now also becomes exclusive sponsor for the club in Latin America. The region is important for the club with millions of fans and the history of stars like Kaká and Ronaldinho. Further, similarly to last summer Betsson is a proud sponsor of Copa America Femenina 2022, which is the Latin American equivalent of the UEFA Women’s Euro 2022 and takes place during July. The interest in women’s football is growing strongly and the previous championship had more than 20 million TV viewers.
In conclusion, we see that macro and geopolitical factors continue to dominate the world around us, with great uncertainty and concerns around war, inflation, higher interest rates and potentially a coming recession. Despite uncertain capital markets, we recently refinanced our bond until 2025, which gives us financial flexibility to continue investing in both organic growth and selective acquisitions. We continuously monitor the macroeconomic trends but also note that historically Betsson’s business has been relatively unaffected by the general business cycle. The first weeks of July are off to a good start and despite the macro factors, we are rather optimistic as we look ahead to the rest of 2022, which has many planned activities for Betsson, including market launches in Mexico and Ontario, as well as the football World Cup during the seasonally strongest fourth quarter.
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In, Out, Shake It All About: Groove Technologies and InOut Games Partner to Rattle the iGaming Cage
Reading Time: 2 minutes
Groove Technologies, the powerhouse aggregator renowned for its elite content portfolio, today announced a strategic distribution partnership with breakout studio InOut Games, the creative force behind the viral sensation Chicken Road. This move integrates InOut Games’ innovative content directly into Groove’s vast ecosystem, providing its global operator network with access to one of the industry’s most talked-about new providers.
This partnership arrives as InOut Games makes its highly anticipated leap into the slot market with Chicken Royal. Inspired by the iconic crash game that captivated a global audience, this new slot transports the beloved chicken into a dynamic, feature-rich format. Designed to engage both seasoned slot players and fans of the original, Chicken Royal marks a pivotal “in” for the studio, expanding its portfolio beyond crash mechanics and signaling its commitment to versatile, high-impact entertainment.
With the addition of InOut Games, Groove’s entertainment ecosystem now blankets over 150 top-tier game providers. Operators worldwide, connected via Groove’s single, streamlined API, will gain immediate access to a catalogue renowned for its fast-paced thrills and unmatched player engagement.
This partnership is a direct reflection of Groove’s strategy to identify and distribute the content that defines the next wave of player preferences.
Rachel Tourgeman, Head of Partnerships at Groove, said: “Our mission is to keep our partners on the cutting edge, and InOut Games represents exactly the kind of innovative talent that moves the needle. This partnership isn’t just about adding games; it’s about injecting our ecosystem with a unique energy that drives retention and revenue.”
Groove’s enterprise-grade platform, equipped with advanced player engagement tools and real-time analytics, ensures that titles from studios like InOut Games achieve maximum visibility and profitability from day one.
“We are confident this partnership will catapult us to an entirely new level of distribution,” said Vladislav Snak, CEO of InOut Games. “Groove’s reach and technological prowess are the perfect accelerants for our growth as we roll out our expanded portfolio.”
Yahale Meltzer, Co-Founder and COO at Groove, added: “The ‘In’ and ‘Out’ of success in this industry is having the right content with the right partners. With InOut Games, we’re not just bringing a studio in; we’re helping to phase out the ordinary. Their bold transition into slots is a game-changer, and through our platform, that change will resonate across the entire operator landscape.”
The post In, Out, Shake It All About: Groove Technologies and InOut Games Partner to Rattle the iGaming Cage appeared first on European Gaming Industry News.
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EvenBet Gaming Presents Spins Poker: A Revolution in Online Poker
EvenBet Gaming, a well-known developer of online gaming software, has announced the launch of its new innovative product – EvenBet Spins. This project promises to completely redefine the perception of poker by combining elements of classic poker games with the dynamics of slot mechanics. Even in the online gambling world, where genuine innovations are rare, EvenBet Spins stands out as a genuine breakthrough poised to attract a broad audience of players.
What is EvenBet Spins?
EvenBet Spins is a unique solution that blends poker mechanics and casino game experience into a single product. Unlike traditional poker, which involves long sessions and deep strategies, Spins Poker offers fast-paced and thrilling rounds that last only a few minutes. It is a perfect choice for players who prefer quick games where the outcome can change in a matter of seconds.
In addition, the inclusion of random win multipliers and hyper-turbo rounds adds an extra layer of excitement reminiscent of slot and jackpot games. This means every round can deliver a surprise, making the gameplay even more engaging. EvenBet Spins opens new horizons for those seeking shorter, more dynamic, and visually exciting poker experiences – without losing the familiar core mechanics of the game.
Integration with Casino and Sportsbook Platforms
Spins Poker offers a streamlined integration process tailored for casino and sportsbook operators seeking to expand their product offerings without the operational complexity of a traditional poker environment. The system integrates seamlessly with existing platforms, enabling operators to introduce poker-style gameplay to audiences accustomed to slots or sports betting, while minimizing the management overhead typically associated with a full poker room.
A simplified product structure eliminates the need for a dedicated poker operations team, extensive onboarding, or continuous oversight. Fraud monitoring and AML workloads remain significantly lower when compared to comprehensive poker solutions. As a result, Spins Poker becomes an accessible addition for operators aiming to diversify engagement tools with minimal resource commitment.
According to Dmitry Starostenkov, CEO of EvenBet Gaming, the concept behind Spins Poker focuses on reducing operational barriers for operators. He highlighted several key advantages:
- Straightforward integration into websites or applications;
- No requirement for an internal poker management team, since the product only needs initial setup with periodic adjustments of buy-ins and multipliers;
- Lower operational effort compared to full-scale poker platforms, which typically demand more preparation, configuration, and ongoing optimization;
- The ability for operators to test poker demand among casino and sportsbook audiences without investing in dedicated staff, lengthy integrations, or extensive marketing campaigns.
In essence, Spins Poker serves as a low-risk, low-maintenance entry point into poker verticals. Its simplified mechanics, flexible configuration, and compatibility with casino and sportsbook platforms make it an efficient tool for testing audience interest and expanding engagement without the commitment required for traditional poker solutions.
Design and Mobile Optimization
Special attention has been given to design and mobile optimization in EvenBet Spins. Considering the growing popularity of mobile gaming, the product was developed with a mobile-first approach to ensure maximum user comfort and convenience. The simple interface, intuitive navigation, and fast loading times make the game accessible to players of all experience levels.
The overall design emphasizes minimalism and functionality, ensuring a smooth and comfortable gaming experience. The product also adheres to the latest UX design trends, making it equally convenient on smartphones, tablets, and desktop devices. The mobile version of the game is ideal for players who enjoy gaming anytime and anywhere, making EvenBet Spins accessible to a wide range of audiences.
How EvenBet Spins is Changing the Online Poker Market
EvenBet Spins is not just another poker format – it’s a true revolution in the world of online gambling. It transforms the perception of online poker from a niche game to a new level, where speed and excitement become central to the gameplay.
This product opens new opportunities for both players and operators. The integration of random multipliers, hyper-turbo rounds, and other innovations within poker mechanics not only makes the game more appealing to newcomers but also introduces new engagement tools for experienced players. EvenBet Spins has the potential to set a new standard in the online poker industry and open up new perspectives for online casinos and sportsbooks.
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TCSJOHNHUXLEY Acquires GPI Dice Business, Becomes Global Dice Industry Leader.
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TCSJOHNHUXLEY, the leading global supplier of world-class casino equipment and services, today announced the strategic acquisition of the dice manufacturing business from Gaming Partners International (GPI).
This landmark acquisition provides TCSJOHNHUXLEY with immediate ownership of GPI’s dice manufacturing capabilities, significantly expanding the company’s production footprint and product portfolio.
With this purchase, TCSJOHNHUXLEY is reinforcing its position as the definitive industry leader. The company will now offer three premier dice brands: TK, Paulson, and TCSJOHNHUXLEY. Crucially, operations will be maintained in both Mexico and Missouri, USA, providing customers with dual supply capabilities for enhanced supply chain resilience and flexibility across all global markets.
This acquisition is a strategic move that enhances TCSJOHNHUXLEY’s core offering, secures its dominance in the dice sector, and ensures the continued delivery of the highest quality and most secure gaming dice to casinos worldwide.
The combined capabilities solidify the company’s commitment to producing the highest standard of precision gaming dice. TCSJOHNHUXLEY’s own “Certified Perfects” Dice are globally acknowledged as the world-wide industry standard for casino gaming dice and are trusted globally for accuracy, quality, and security. Available for Craps, Sic Bo, and Pai Gow, the dice can be specified with razor edge or ball corner profiles, come in various sizes, and are manufactured with dots flush to the surface before being wrapped in the signature gold foil, with options for monogramming or serialization to a casino’s specifications, ensuring complete security.
Tristan Sjoberg, Executive Chairman of TCSJOHNHUXLEY, commented “The acquisition of the GPI dice business is a truly transformative step for TCSJOHNHUXLEY. By immediately securing the renowned TK and Paulson brands, we are fundamentally consolidating our position as the definitive global leader in casino dice manufacturing. Leveraging this increased scale and our dual production capabilities, we can provide customers with unmatched supply security and sustained access to the world’s most precise, trusted, and high-quality gaming dice.”
The post TCSJOHNHUXLEY Acquires GPI Dice Business, Becomes Global Dice Industry Leader. appeared first on European Gaming Industry News.
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