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Betsson AB (STU:V72) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Market Shifts

In This Article:

  • Group Revenue: EUR307 million, a 22% increase year over year.

  • Operating Income (EBIT): EUR70 million, a 23% increase year over year.

  • EBIT Margin: 22.9% for the quarter.

  • Customer Deposits: Increased by 14% year over year.

  • Casino Revenue: Up 17% year over year.

  • Sportsbook Revenue: Up 36% year over year, with a margin of 9.8%.

  • Full Year Revenue 2024: Exceeded EUR1 billion, a 17% increase from the previous year.

  • Full Year EBIT 2024: EUR257 million, a 22% increase year over year.

  • EBITDA and Operating Cash Flow: Up 20% and 18% year over year, respectively.

  • Net Income and EPS: Increased by 6% and 2% respectively, affected by higher corporate tax rate.

  • Operating Cash Flow Q4: EUR84.6 million, compared to EUR47.6 million last year.

  • Net Cash Position: EUR140 million at the end of December.

  • Equity Ratio: 63%.

  • Proposed Dividend for 2024: EUR0.757 per share, a 17% increase.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive 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.

Negative Points

  • 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.