Betsson AB (BETS.B) AI Stock Analysis

• Market Cap: kr22.36B
• Dividend Yield: 4.56%
• Average Volume (3M): 383.28K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.43
• Revenue Growth: 15.10%
• EPS Growth: 23.19%
• Country: SE
• Employees: 2,769
• Sector: Services
• Sector Strength: N/A
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 4.01
• Shares Outstanding: 124,948,400
• 10 Day Avg. Volume: 320,438
• 30 Day Avg. Volume: 383,276
• PEG Ratio: 4.07
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 7.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr179.00
• Price Target Upside: 11.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: kr179.00 ▲(11.74% Upside)

Betsson AB's overall stock score is driven by its strong financial performance and attractive valuation. The company's consistent revenue growth, robust profitability, and stable balance sheet are significant strengths. While technical indicators show some bearish momentum, the low P/E ratio and high dividend yield provide a compelling case for investment.

Betsson AB Business Overview & Revenue Model

Company Description

Betsson AB, through its subsidiaries, engages in the online gaming business primarily in the Nordic countries, Western Europe, Central and Easter Europe, Central Asia, and internationally. It offers poker, casino, sportsbook, scratch cards, bingo, and other games. The company serves its customers under Betsafe, Betsson, Casino DK, Casino Euro, Casino Winner, Colbet, Europebet, Uguts, Inkabet, Jackpot 247, Jalla Casino, Kaboo, Loyal Casino, NordicBet, Norges Automaten, RaceBets, Rizk, Star Casino, Supercasino.com, Live Roulette, and Thrills brand names. It also offers systems solutions to other gaming operators. Betsson AB was incorporated in 1963 and is based in Stockholm, Sweden.

How the Company Makes Money

Betsson AB generates revenue primarily through its online gaming operations, which include sports betting, casino games, and poker. The company's main revenue streams consist of player bets on sports events, casino game transactions, and poker tournaments. Betsson takes a percentage of the bets placed as its earnings. Additionally, the company often partners with software providers and payment processors to enhance its platform offerings and streamline transaction processes, which can also contribute to its revenue. Marketing and promotional activities play a crucial role in attracting new customers and retaining existing ones, further driving revenues. Moreover, Betsson has established various strategic alliances with other gaming companies and affiliate networks that help expand its customer reach and enhance brand visibility.

Betsson AB Financial Statement Overview

Summary

Betsson AB exhibits a robust financial position with strong growth in revenue and cash flows. The company maintains healthy profitability margins and a solid capital structure with low leverage. Effective cash management and strong shareholder returns position Betsson well for future growth.

Income Statement

Betsson AB has demonstrated strong revenue growth with a consistent increase in total revenue over the years. The gross profit margin is robust at 69.2% for TTM, reflecting efficient cost management. The net profit margin is solid at 16.3%, indicating strong profitability. The EBIT and EBITDA margins are also healthy, showcasing operational efficiency. Overall, the income statement reflects a stable and growing financial performance, with positive growth trends in revenue and profitability.

Balance Sheet

Betsson AB's balance sheet is strong with a low debt-to-equity ratio of 0.20, indicating low leverage and financial stability. The equity ratio is also strong at 63.9%, reflecting a solid capital structure. The return on equity is decent at 20.6%, suggesting effective use of shareholder capital. However, the company should monitor its total liabilities, which have been increasing over the years. Overall, the balance sheet indicates financial stability with low leverage and good shareholder returns.

Cash Flow

Betsson AB's cash flow statement shows strong operating cash flow, which has consistently increased over the years. The free cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. The company has also demonstrated a positive free cash flow growth rate, reflecting effective cash management. However, the company should ensure that capital expenditures are managed to sustain free cash flow growth. Overall, the cash flow statement reflects strong cash generation capabilities and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	1.11B	948.20M	777.20M	657.70M	633.30M
Gross Profit	814.40M	719.75M	756.33M	504.36M	450.44M	430.78M
EBITDA	333.57M	316.00M	259.79M	173.08M	152.49M	145.99M
Net Income	191.90M	181.30M	177.30M	119.60M	106.40M	99.76M
Balance Sheet
Total Assets	1.40B	1.37B	1.20B	1.02B	897.20M	819.14M
Cash, Cash Equivalents and Short-Term Investments	327.00M	308.50M	237.10M	168.30M	95.60M	85.55M
Total Debt	181.20M	186.20M	184.20M	115.00M	117.10M	124.07M
Total Liabilities	560.00M	509.50M	440.90M	370.90M	328.40M	317.33M
Stockholders Equity	849.80M	869.10M	770.00M	654.20M	571.80M	499.29M
Cash Flow
Free Cash Flow	223.10M	222.90M	189.00M	143.20M	111.50M	100.94M
Operating Cash Flow	274.60M	272.90M	230.40M	178.70M	143.60M	137.19M
Investing Cash Flow	-84.40M	-93.30M	-159.00M	-51.20M	-71.60M	-68.77M
Financing Cash Flow	-124.00M	-107.00M	300.00K	-54.70M	-62.20M	-42.43M

Betsson AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BETS.B, the sentiment is Negative. The current price of 160.2 is below the 20-day moving average (MA) of 160.35, below the 50-day MA of 175.40, and below the 200-day MA of 160.35, indicating a bearish trend. The MACD of -3.01 indicates Negative momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BETS.B.

Betsson AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BETS.B	74 Outperform	kr22.36B	10.20	23.10%	4.56%	15.10%	23.19%
Sector *	56 Neutral	$13.94B	13.68	10.03%	0.85%	7.13%	-12.93%
CTTMF	―	$18.80M	―	-38.74%	―	―	―
KMBIF	―	$407.85M	45.96	4.76%	―	―	―
7NG	―	€17.32M	―	-71.93%	―	―	―
BETCO	67 Neutral	kr7.32B	25.92		―	-5.42%	-17.95%
RAKE	46 Neutral	kr116.90M	―		19.48%	1.88%	-207.73%

Betsson AB Corporate Events

Betsson AB Reports Strong Growth and Expands Market Presence in 2025

Betsson AB reported continued profitable growth in the first half of 2025, with a 15% increase in group revenue and an 8% rise in EBITDA. The company achieved significant growth in Latin America, notably in Peru and Argentina, and strengthened its market position through strategic sponsorships and product development. The launch of Betsson’s brand in Georgia and Lithuania, along with enhancements in customer experience and payment solutions, further supports its global expansion strategy.

Betsson AB Subsidiary Ordered to Repay EUR 500,000 by Swedish Supreme Court

The Swedish Supreme Court has ruled that Betsson AB’s subsidiary, BML Group Ltd, must repay approximately EUR 500,000 to a former customer, upholding a previous decision by the Patent and Market Court of Appeal. The case pertains to activities between 2009 and 2014, prior to the implementation of the Swedish Gambling Act in 2019. Betsson’s CEO, Pontus Lindwall, expressed disappointment but noted that the ruling is based on specific circumstances and is not expected to have significant financial repercussions for the company. Betsson emphasizes its commitment to responsible gaming practices.

Betsson AB Withdraws from Dutch Acquisition

Betsson AB has decided to terminate its agreement to acquire Holland Gaming Technology Ltd and Holland Power Gaming B.V. due to the Dutch Gambling Authority not issuing a decision by the agreed deadline. The transaction’s reversal will involve returning the companies to the sellers and refunding Betsson EUR 26.7 million, minus a break fee, without significantly impacting the company’s consolidated income statement.