In this equity research report, analyst David Holm takes a closer look at Betsson, an iGaming company that offers a variety of games and a sportsbook. The Company’s proprietary platform and B2B solutions makes it possible to grow further and increase EBIT-margin to 18.8% 2024E. With geographical expansion, Betsson can grow with a CAGR of 19.8% between 2021A – 2024E. Consequently, rated with a buy & 18-month TP of SEK 170 & an IRR of 24.3% over 18 months.
Investments highlights
- Rapid growth in Latin America, which will grow with a CAGR of 63.9% 2021A – 2024E
- Experienced management that creates shareholder value reflected in an ROE of 19.3% 2023E
- Betsson has substantial growth in its B2B offer, contributing to higher top-line and EBIT-margin.