Betsson Announces Q2 2025 Revenue of €303.7 Million, Marking a 12% Increase from the Previous Year
Betsson, the Swedish online gaming company, has reported a strong Q2 2025 performance, setting a positive tone for its upcoming Q3. The company's revenue grew by 12% year-over-year to €303.7 million, with organic growth at 16%.
The company's casino revenue increased by 11%, sportsbook revenue rose by 15%, and EBITDA grew by 8% to €84.1 million. These figures indicate a steady growth trajectory for Betsson.
Net income also saw a significant increase, rising to €49.2 million, up from €39.1 million in Q2 2024. Improvements in operating income and margin management show efficient cost control.
However, the operating cash flow declined sharply by 46% to €41.1 million due to higher taxes, reduced player liabilities, and increased accounts receivable. This contributed to a share price drop of over 14% post-Q2 report.
Despite the decline in operating cash flow, active users slightly decreased by 1.4% to 1.38 million, and registered users dropped from 31.2 million to 30 million. However, the underlying active customer acquisition and engagement were resilient, especially in core markets of Western Europe and Latin America.
For Q3 2025, the average daily revenue as of mid-July was 5.2% higher than Q3 2024 and 11.9% higher when adjusted for currency and acquisitions. This suggests continued momentum in the next quarter.
Betsson's growth strategy focuses on expanding in existing markets, entering new ones, and developing B2B offerings. This strategy bodes well for sustained long-term growth and market share gains.
The company's financial outlook for Q3 2025 is cautiously optimistic, supported by solid revenue growth and operational strength in Q2. However, the decline in operating cash flow and active users are risks to monitor. Betsson’s focus on technology, localization, and regulatory preparedness should help maintain competitive positioning in its key markets.
Betsson holds licenses in 24 countries and has recently acquired Sporting Solutions. The company is also awaiting license renewals in Italy and is navigating new restrictions on advertising in Central and Eastern Europe. In Latin American markets like Brazil, Peru, and Colombia, regulatory and tax shifts are underway.
In addition, a proposed ban on gambling credit is under consideration in Sweden, which could impact the company's operations. However, Betsson holds an AAA ESG rating from MSCI, indicating strong environmental, social, and governance practices.
In conclusion, Betsson's Q2 performance and Q3 outlook are promising, with the company well-positioned to capture global growth opportunities in the online gaming market. The company's focus on customer care, ethics, social responsibility, environmental impact, employee well-being, product development, data-driven marketing, and responsible gaming remains steadfast.
- Betsson's focus on expanding in existing markets, entering new ones, and developing B2B offerings in the realm of technology is expected to maintain a competitive positioning in its key markets, especially in lifestyle sectors.
- Despite the decline in operating cash flow and active users, Betsson's strategic approach towards localization, regulatory preparedness, and adapting to changing weather conditions in its key markets, such as Latin America, will contribute to sustainable long-term growth and market share gains.
