**This rewritten article focuses on Betsson, a major player in the online gambling industry, and its growth, financials, competition, and valuation**
Betsson is a leading online gambling holding company operating diverse online casinos and a sportsbook. With brands like Betsson, Betsafe, Nordicbet, and Casinoeuro, the company has a strong presence in Europe. It has strategically shifted focus to Latin America to avoid the cutthroat US market. Despite regulatory and competitive risks, Betsson’s consistent 10-year Compound Annual Growth Rate reflects a 9% annual growth, coupled with robust 7% owner earnings and the potential for a 20% increase in multiples, positioning it as an appealing long-term investment.
The company operates as a holding company with subsidiaries managing a diverse portfolio, including online casinos and a sportsbook. Customer outreach is achieved through various brands primarily through proprietary platforms efficiently handling payments, customer information, accounts, transactions, and a vast range of games.
Betsson has gaming licenses in 20 countries across Europe, Africa, North America, and South America. Its operational headquarters is in Malta, with operational activities across various regions such as Western Europe and the Nordics, Central and Eastern Europe, Asia, and Latin America. Revenue is primarily generated from a broad product portfolio catering to mainly males within the age range of 18 to 45.
In response to the Dutch Gambling Authority’s new enforcement policy in 2019, Betsson discontinued the acceptance of Dutch customers on international websites. The company redirected its focus to Latin America, contributing almost a quarter of Betsson’s revenue and serving as the primary driver of its growth.
Pontus Lindwall, Betsson’s CEO, prioritized Latin America over the US market, safeguarding significant shareholder value.
Betsson consistently generates substantial cash flow for its stakeholders and strategically accumulates cash reserves for targeted acquisitions. It strategically invests in acquisitions for further growth, maintaining stable margins since 2019.
The company has a well-defined strategy for both organic growth and expansion through acquisitions. Over the past decade, they have achieved an impressive 10% revenue Compound Annual Growth Rate. Expansion primarily originates from Latin America and Central and Eastern Europe and Central Asia, with growth anticipated from the online casino and sports betting sectors.
In Q3 2023, Betsson achieved record revenue of EUR 237.6 million, with notable highlights including a 27% increase in casino revenue and a 42% growth in EBITDA, reflecting strong financial performance and geographical expansion.
While Betsson is a significant player in the gambling industry, its market share remains in the low single digits despite fierce competition from major players. Despite operating at a lower valuation compared to its peers, Betsson’s operating margin has stabilized since 2019, positioning it as an appealing long-term investment.