Despite Q2 headwinds and operational slowdowns, Betsson remains resilient, with strong margins and robust cash generation supporting my bullish outlook. The stock offers nearly 40% upside to my $25 price target, plus a 4%+ dividend yield—well above the industry average and backed by healthy FCF. The valuation is compelling: Betsson trades at a deep discount to peers on P/E and EV/EBITDA, with room for further dividend growth and special payouts.
Betsson AB (publ) (OTCPK:BTSBF) Q2 2025 Earnings Conference Call July 18, 2025 3:00 PM ET Company Participants Martin Ohman - Chief Financial Officer Pontus Lindwall - CEO, President & Executive Director Conference Call Participants Georg Attling - Pareto Securities AS, Research Division Martin Arnell - DNB Carnegie, Research Division Pontus Lindwall Good morning, everyone, and welcome to Betsson's presentation of the Second Quarter 2025. I'm Pontus Lindwall, the President and CEO of Betsson.
Betsson is an undervalued gem in the online gaming market, showing stable growth and disciplined management, unlike its competitors. Q1 2025 was a home-run with 18% revenue growth and 17% EPS growth, outperforming peers like Kambi. The stock is laughably cheap at 12x earnings, with a DCF valuation suggesting it could be worth 346 SEK ($36).
Betsson reported Q1 FY 2025 revenue of €293.7 million, up 18% YoY, with EPS of €0.35, up 17% YoY, showcasing strong financial performance. The company has a robust balance sheet with net debt of -€177.8 million and a P/E ratio of 12.17x, making it a compelling investment. Latin America is a key growth engine, with revenue up 70.3% YoY, and significant potential in Brazil and Paraguay as new markets.
Betsson, a Swedish company, has grown significantly through strategic acquisitions, focusing on online casinos and sports betting in CEECA and Latin America. FY 2024 was Betsson's best year, with €1.106 billion in sales, strong EBIT growth, and impressive free cash flow, highlighting its robust financial health. Betsson's valuation remains attractive with a P/E of 8.48x and a PEG of 0.42x, suggesting significant upside potential compared to industry medians.
Betsson AB (OTCPK:BTSBF) Q4 2024 Earnings Conference Call February 6, 2025 3:00 AM ET Company Participants Pontus Lindwall - President and Chief Executive Officer Martin Ohman - Chief Financial Officer Conference Call Participants Oscar Rehnkvist - ABG Sundal Collier Georg Attling - Pareto Securities Martin Arnell - DNB Markets Operator Welcome to Betsson Q4 Report 2024. For the first part of the conference call the participant's will be in listen-only mode.
Betsson AB (publ) (OTCPK:BTSBF) Q2 2024 Earnings Conference Call July 19, 2024 4:00 AM ET Company Participants Pontus Lindwall - Chief Executive Officer Martin Öhman - Chief Financial Officer Conference Call Participants Oscar Rönnkvist - ABG Sundal Collier Georg Attling - Pareto Securities Martin Arnell - DNB Markets Operator Welcome to Betsson Q2 Report 2024. For the first part of the conference call, the participants will be in listen-only mode.