Sweden's Betsson Q3 revenue rises 10% on casino growth
Sweden's Betsson Q3 revenue rises 10% on casino growth
Overview
Sweden online gaming group's Q3 revenue rose 10% yr/yr, driven by casino growth
Q3 EBITDA fell 23% yr/yr as margin narrowed to 19.4%
Q3 net income declined compared to prior year
Outlook
Company expects an intensive end to the year with a full pipeline of activities
Betsson says it is well positioned to return to earnings growth
Company sees continued positive momentum in Latin America, supported by investments in products and marketing
Result Drivers
LATIN AMERICA GROWTH - Revenue growth in Latin America, especially Peru and Argentina, was driven by high customer activity and marketing tied to the FIFA World Cup
CASINO PRODUCT - Casino revenue growth offset lower sportsbook margin, supporting overall revenue increase
RHINO ACQUISITION - Acquisition of Rhino Entertainment Group contributed positively to revenue and earnings
Company press release: ID:nWkr1Jl5fp
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| EUR 326.50 mln |
|
Q3 Net Income |
| EUR 28.20 mln |
|
Q3 EBIT |
| EUR 46.10 mln |
|
Q3 EBITDA |
| EUR 63.40 mln |
|
Q3 EBITDA Margin |
| 19.40% |
|
Q3 EBIT Margin |
| 14.10% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy."
Wall Street's median 12-month price target for Betsson AB is SEK95.00, about 1.3% above its October 21 closing price of SEK93.75
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)