Betsson buys KickerTech for EUR14m, announces record quarter

Content Team 1 year ago
Betsson buys KickerTech for EUR14m, announces record quarter

Betsson announced it has bought 80 percent of business-to-business sportsbook, KickerTech Malta, after posting record quarterly revenue. 

The company will pay EUR14 million in cash in three installments, with EUR6 million in cash immediately. Betsson will pay a further EUR4 million in cash in six months and EUR4 million in either cash or stock after 12 months. 

The company said the acquisition will allow it to expand its client base and provide additional scalable technology. It will also strengthen its existing sportsbook. 

”We continue to grow our sportsbook business around the world and this deal will both strengthen our position as one of the leading B2C sportsbook operators in the market and complement our highly competitive B2B sportsbook proposition,” says Pontus Lindwall, Betsson CEO. “We are acquiring a proven business with a track record of growth in client base, sportsbook turnover and revenue in the past years. The acquisition will contribute sportsbook functionality, tech development capabilities and new B2B clients.”

KickerTech is based in Vilnius, Lithuania. In the year to end-September, it generated EUR2.6 million in revenue and EUR1.3 million in EBIT. The company is focused on building advanced odds models, trading technology and sportsbook features.

Record quarterly EBIT, revenue for Betsson

The announcement of the acquisition comes as Sweden-listed Betsson posted its best quarterly results for revenue and operating profit. 

Revenue in the quarter ending Sept., rose 18 percent to EUR200.3 million, with an organic increase of 35 percent.

Casino revenue rose by 8 percent, while sportsbook revenue jumped 45 percent with an 8.3 percent margin. Operating income, or EBIT, was EUR38.4 million, up 21 percent. 

Lindwall said growth had come mainly from Latin America, Central and Eastern Europe and Central Asia. The early start of the European football leagues due to the upcoming World Cup in Qatar, also had a positive impact in the quarter. 

Betsson said it will continue with its growth strategy, which is based on geographic expansion and diversification. In August an online casino offering was launched on the regulated market in Mexico. 

“This is a soft launch so far, but marketing will increase during the fourth quarter and especially during 2023 and we see considerable potential for this market in the long term given the size of the economy, the population, and the low level of online gaming penetration in the country,” he said.

Going forward, Betsson said it hasn’t seen any signs of weaker demand due to weakening economic conditions. It said the World Cup has a good chance of being the biggest sports event ever for Betsson. 

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