Betclic Everest Group reported a yearly income of €718.5 million ($765.8 million/£626.4 million) for the year ending September 30, showing a 21.3% increase compared to the previous year. This growth was fueled by a significant rise in new customers, propelling both revenue and profits to double-digit gains so far this year.
Betclic Everest experienced robust third-quarter growth despite challenges faced by Bet-at-home.
FL Entertainment, the group’s owner, revealed that its Betclic and Bet-at-home brands generated €718.5 million ($765.8 million/£626.4 million) in revenue for the year ending September 30. This nine-month figure represents a 21.3% year-on-year increase at constant exchange rates. Revenue for the third quarter climbed by 17.3%.
All divisions contributed to this performance, with each segment exhibiting double-digit growth. Sports betting remains the largest segment, accounting for 78% of the total revenue. However, it experienced the slowest growth during this period.
Sports betting revenue increased by 16.7% at constant exchange rates, reaching €558.4 million. FL attributed this strong performance to the comparison with the robust third quarter of 2022, when the FIFA World Cup at the end of 2022 led to an early start of the UEFA Champions League in the third quarter of 2022.
The online casino segment emerged as the fastest-growing area, surging by 48.7% to €106.9 million. While poker remains the smallest segment, it witnessed a 25.3% growth, reaching €43.7 million during the period.
Betclic’s growth contrasted with Bet-at-home’s decline.
The Betclic brand was the driving force behind this growth, while Bet-at-home recently lowered its revenue projections for the 2023 fiscal year.
This is due to a string of unfortunate sporting event outcomes.
Following the discontinuation of the Bet-at-home business, revenue rose by 22% at prevailing exchange rates. This was fueled by the sustained robust performance of Betclic, which expanded by 24%, while Bet-at-home contracted by 14%. Bet-at-home’s UK permit was suspended in July 2022, and it withdrew from Austria and Malta in 2021.
The organization continued to record strong player momentum, with a 34% surge in new unique active players.
Adjusted EBITDA reached €472.9 million, up 8.1% at constant exchange rates and 6.9% at current exchange rates.
Profitability was impacted by a 7.5% rise in overall group expenses to €1.4 billion. This was driven by higher gaming taxes.
The gaming business contributed €132 million to the group’s operating profit, consistent with the initial nine months of 2022.
Betclic anticipates new app to yield returns
Looking ahead, FL anticipates the positive momentum in its betting business to persist in the final quarter of 2023. The firm stated this will be driven by continued growth and retention of unique active players, as well as the expected influence of the new Betclic app. While unfavorable sporting event outcomes in October impacted the entire sector, the company stated the impact has started to reverse.
FL Group’s total revenue climbed 5.6% to €2.9 billion, the group owns global television production company Banijay. Adjusted EBITDA grew 6.9% to €472.9 million.
François Riahi, the chief executive officer of FL, stated: “Our performance during the initial nine months of 2023 has been robust, with revenue expansion and profitability showcasing the strength of our entertainment sector.
“In the realm of online sports wagering and gaming, we have sustained strong double-digit growth across all our operations. We remain focused on expanding and retaining unique active participants, driven by the successful introduction of our acclaimed new application, which enhances our product offerings and user experience.
“Betclic has also become the inaugural operator outside of the United Kingdom to receive GamCare’s Safe Gambling accreditation, demonstrating our unwavering commitment to responsible gaming.”
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