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Investing,com -- Shares of Betsson AB (ST:BETSb) plunged more than 14% on Friday after the company posted a sharp drop in operating cash flow and a decline in active customers.
Revenue for the quarter ended June 30 rose 12% to €303.7 million from €271.5 million a year earlier.
Net income increased 11% to €49.2 million, or €0.36 per share, from €44.4 million, or €0.33 per share. Operating income was €69.0 million, up 8%, and EBITDA rose 8% to €84.1 million.
Operating cash flow dropped 46% to €41.1 million from €75.8 million, impacted by higher taxes, lower player liabilities and increased accounts receivable.
Active customers declined 1.4% to 1.38 million, while registered users fell to 30 million from 31.2 million, reflecting market exits.
Casino (EPA:CASP) revenue rose 11% to €212.4 million, representing 70% of group revenue. Sportsbook revenue increased 15% to €90 million with a margin of 9.5%, up from 8.6%.
Sportsbook turnover fell 4% to €1.47 billion. Other products contributed €1.3 million, down from €2.0 million.
Regionally, Latin America delivered record results with revenue rising 35% to €84.7 million, led by Argentina and Peru.
Western Europe grew 36% to €59.3 million, with Italy reporting all-time high revenue. Central and Eastern Europe and Central Asia rose 3.7% to €118.2 million.
Nordic revenue dropped 28% to €33.9 million due to lower marketing spend, while the rest of the world nearly doubled to €7.6 million.
Customer deposits rose 4.4% to €1.49 billion. Gross profit increased 10% to €193.9 million, while the gross margin narrowed to 63.9% from 65.1%. Marketing costs rose to €37.4 million. Personnel expenses increased to €46.6 million, with headcount averaging 2,838, up from 2,217. Other external expenses were flat at €35.3 million.
Net financial items showed a loss of €5.3 million. Tax expense was €14.6 million, representing an effective rate of 22.9%.
Cash and equivalents totaled €327 million, up from €263.9 million. Net financial debt improved to -€151.8 million from -€93.1 million.
The company exited its operations in Nigeria and terminated its acquisition of Holland Gaming Technology and Holland Power Gaming B.V., securing a €26.7 million refund.
In June, Betsson launched in Georgia and Lithuania and signed a three-year sponsorship with Belgium’s Club Brugge.
In regulatory matters, Sweden fined Betsson Nordic SEK 6.5 million over customer due diligence lapses.
The company has appealed. In Peru, a 1% consumption tax on online gambling was enacted. Brazil passed a bill to raise the gambling tax to 18% of gross gaming revenue and introduce tighter ad rules.
As of July 13, average daily revenue for Q3 was 5.2% higher than the full third quarter of 2024. Adjusted for currency and acquisitions, the figure was 11.9% higher.