Betsson Acquires Majority Stock Control of KickerTech As Revenue Soars

On Wednesday, the online sportsbook and casino operator Betsson announced that it had acquired 80% of the shares in sportsbook supplier KickerTech. The shares were bought for €14m, broken down into €6m in cash up front, €4m in cash in six months and a further €4m in either cash or shares in 12 months. This comes as news has also broken that Betsson has recorded record Q3 results.

KickerTech has a team of 50 professionals building advanced odds models, trading technology, and sportsbook features. The team is based in Vilnius, Lithuania. In the last 12 months, ending on 30 September 2022, the acquired business generated revenue of approximately EUR 2.6 million and EBIT of about EUR 1.3 million.

CFO of Betsson Martin Öhman said: “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.”

Betsson chief executive Pontus Lindwall said: “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. I am very pleased to welcome the new team and clients to the Betsson Group.”

Betsson Future Aspirations

As discussed here, Betsson has broader future aspirations and plans to make more B2B acquisitions thanks to its rising profits.

According to Martin Öhman, the company “has quite a strong balance sheet, and we want to have a strong balance sheet, especially when you are entering rougher times in financial markets.” He continued by saying: “It helps us to deliver on our strategy both organically and through M&A. Having a strong balance sheet helps us have flexibility when growing.”

This advantageous-looking balance sheet should enable Betsson to continue growing its business and help them focus more on B2B expansion.

Lindwall said, “I think when buying this one (Kickertech), we broaden the spectrum of customers we can serve with sportsbook products,” he said. “We can cover much more of the market now globally with these two products.”

Regarding Betsson’s financial progress and its profitability, the company recorded its highest quarterly revenue this quarter, posting revenue of €200.3m, up 17.8% year-on-year. Of this sum, B2B revenue made up €45.1m, a 22% share of the overall total. What’s more interesting about this revenue spike is that sportsbook betting for the company grew much quicker than casino revenue, growing by 45% compared to last year.

Translated to profit, the business made a gross profit of €133.8m in quarter 3. As you’ll not be surprised to know, this figure represents another record for the company and a 21.7% growth compared to 2021.

With huge sporting events such as the football world cup on the horizon and an expansion in sports betting around the world for Betsson, the company could be looking at an exponential trend of sports gambling growing faster than casinos, and yet more high profits being recorded.