After the latest financial report was released, Betsson CEO Pontus Lindwall emphasized that the newly launched gambling services in Brazil and Paraguay will become the new engines for the company's continued growth in the Latin American market. In the first quarter of 2024, Betsson's revenue in Latin America reached 74.5 million euros, a significant increase of 70.3% year-on-year, accounting for a quarter of the group's total income.
This Sweden-based gambling company announced yesterday that its group's quarterly total revenue increased by 18.3%, reaching 293.7 million euros (approximately 335 million US dollars). This growth was due to the robust performance of the global multi-market layout, especially the strong momentum of online casinos and sports betting in the Latin American region.
New markets launched, but not yet fully reflected in the financial report
Although Betsson obtained full operational licenses for the Brazilian market in February, the actual gambling services were not officially launched until April, meaning that the initial revenue from this market has not yet been reflected in the first quarter financial report. Additionally, Betsson also completed the technical platform release in Paraguay in February and expects to obtain the local online casino license by the end of 2024.
"We believe that over time, these new markets will become key pivots in Betsson's Latin American expansion strategy," Lindwall said during the earnings call. "We have already achieved solid results in Argentina, Peru, and Colombia, and the newly launched markets will further solidify our regional layout."
Steady progress: Cautious strategy in the Brazilian market
Despite being optimistic about the potential of the Brazilian market, Lindwall pointed out that the company would adopt a gradual approach to ensure that services and products are adapted to the local market. "Brazil is a large and diverse market, we decided to start with a milder approach, focusing on verifying whether the product localization is in place," he said. "Once ready, we will increase our marketing investments."
This strategy continues Betsson's emphasis on "deep local cultivation," with the company preferring to operate deeply in Spanish-speaking Latin American countries (such as Argentina, Colombia, Peru) before gradually expanding to Portuguese-speaking countries like Brazil.
Continued efforts in old markets, steady layout in new markets
Betsson CFO Martin Öhman added that since Brazil and Paraguay were launched later, they have not yet had a significant impact on the first quarter financial performance. However, he emphasized that other Latin American markets have already become the core drivers of revenue growth.
Among them, Argentina continued its "strong user deposit activity and revenue record" in the first quarter, while Peru also achieved year-on-year growth in sports betting and online casino businesses.
Furthermore, although Colombia has been imposing a 19% new value-added tax on online gambling since February, Öhman stated that this has had limited impact on the company's overall revenue. "The Colombian market is relatively small, and the tax measures have not yet produced significant financial pressure."
Looking ahead: Latin America remains a growth powerhouse
Currently, Betsson holds local gambling licenses in 25 countries worldwide. The Latin American region has become a growth pole in its global layout. Lindwall stated that although new markets like Brazil and Paraguay are still in the early stages, their growth potential is enormous.
"Our growth momentum in the region is evident, and we have a good market foundation," Lindwall concluded. "Brazil and Paraguay have brought us new opportunities, and we are confident that as the market progresses, these investments will translate into substantial returns."
