Betsson AB
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Betsson AB
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Welcome to today's presentation from Betsson. With us today, we have CEO, Pontus Lindwall; and CFO, Martin Ohman. My name is [ Christopher Bergen ], and I will handle the Q&A session after the presentations. If you have any questions, you can visit the web page and write them directly on the page or you can dial in and follow the instructions. And with that said, I hand over the word to Pontus.
Thank you. So welcome to the presentation of Betsson's Fourth Quarter 2021. So here's the outline for today's presentation. We're going to start out with some highlights and then the progress of the quarter, some financials, trading update, regulatory updates and a summary and then there will be Q&A. So some of the highlights for the fourth quarter were revenues of SEK 1.6 billion, massive active customers figure of more than 1.1 million clients, EBIT of SEK 211 million, and EBIT margin of 13%.Casino revenues was down 9%, sportsbook down 11% due to the weak margin in October, but Sportsbook turnover was up 16%, and we had an organic EBIT of SEK 288 million. So for the full year of 2021, we have some highlights as well. Revenues of SEK 6.7 billion, EBIT margin of 18%, sportsbook revenue up 23%, and that's an all-time high. Casino revenue down by 1%, of course, impacted by Netherlands, where we closed in the fourth quarter, EBIT SEK 1.2 billion and a record sportsbook turnover up 26% year-on-year. And this -- with this strong profitability, we are planning on a distribution to the shareholders of SEK 539 million for the year of 2021.So the Betsson strategy that supports our growth and kind of steers the company. We're going to comment a bit on a few areas of this one. So the backbone of what we do, the existing markets where we have the bulk of our revenues, we have done a lot of activities. In Sweden, we have done a new version of ProSieben as an example. We have started sponsoring in Lithuanian basketball and we have been main sponsors of La Roja, the Chile national team.Now I'm trying to change the picture of the presentation. So on the new markets, we have launched in Argentina and increased marketing in Greece. As to some of our activities in LatAm, we have established a service hub in Bogota. We have acquired a proprietary technology platform for LatAm Payments. We have acquired Inkabet, an operator in the Western part of this region. And we have done several significant sponsorships and partnerships in the region.So LatAm still showing a strong progress, strong development. It's an all-time high in the fourth quarter and also for the year. And the underlying turnover in the sportsbook has really been strong in the quarter and it's, of course, an all-time high, but also for the year, it's an all-time high. So CEECA region shows an all-time high as well. And it's driven by our business consumer brands that we operate. And especially, I want to mention the new markets of Croatia and Greece, which shows strong development in the fourth quarter and for the full year of 2021.In the U.S., I'm looking forward to the launch in Colorado, which is planned to happen by the end of this quarter. We have done a lot of achievements during the fourth quarter and we're working really hard on this one. So we have got the GLI certification for Colorado. We have integrated our sportsbook to the Strive platform and we are on the way to launch by the end of this quarter, which will pave the way for business-to-business opportunities in the U.S. for the rest of the year.And innovation is something, which is really important for us and that supports the strong growth of the company. And to mention a few initiatives in the quarter, we have strengthened the user experience with several changes and improvements of the user interface. We have been focusing even more on developing the native apps for Apple and Android. We have a new poker product that has been launched in Greece and we have launched more than 200 casino games on the different platforms. We have done local adaptations to the platforms to fit for the Argentinian markets and we have implemented several new payment methods for many different markets.Something which is very important for a gaming company, of course, is the sustainability. And as you all know, we have our sustainability framework. We have now been mapping ourselves towards 3 of the United Nations sustainability goals, which we think are the most important one for a gaming company. We measure our KPIs in responsible -- in the area of responsible gaming. And during the quarter, we have had more than 80,000 interactions with customers, more than 12% has used the nonmandatory responsible gaming tools and over 1% of the contacts to the customer service center has rendered red flags, which means that we will continue to have a deeper look of these customers.And close to 40% of our new customers put a deposit limit onto their account when they start using the services. We have an internal responsible gaming prediction tool, which we have updated during the quarter. So it's even more sharp than it has been before. And this one, of course, helps our organization to be even more sharp in contacting the right people and to be able to do that even faster than before if we suspect there's a risk for problem gambling.So selected activities in the fourth quarter for the -- within the area of sustainability. We have implemented a KYC platform for our vendors, for the vendors of Betsson. We have had the annual employee survey, where we had 88% of the employees, say they are proud to work with Betsson. So that means that they have a -- they feel that they have a good way of doing employee impact in the organization and that we are treating our employees in a very good way.On the Climate side, we have implemented a road map and we have identified what KPIs to strive for and how to go forward to reduce emission of greenhouse gas. So now it's time for the financials. I'm going to leave to Martin and I definitely want to wish you good luck with the technology and hope that it will work better for you than it did for me.
Yes, let's hope for that. Thanks, Pontus. Today, I will take you through the financials over the fourth quarter, which has been a quarter with different challenges. But nevertheless, we see yet another quarter with growth in active customer, growth in deposits and growth in sportsbook turnover. However, the sportsbook margin was exceptionally low in October and the overall sports margin in the quarter was below the 8-quarter rolling average margin. Then adding the loss of Dutch customer to it, makes it easy to understand that the remaining business is performing very solidly.Revenue for the fourth quarter was SEK 1.594 billion, a decrease of 10% year-over-year and 7% organic decrease. As a reference, one should keep in mind that Q4 2020 showed the highest revenue in Betsson's history, meaning that comparables are really tough. Casino revenue was SEK 1.65 billion, a decrease of 9% year-over-year, impacted by the loss of revenue from Germany and the decision to stop accepting Dutch customers as of end of September following the Dutch Gaming Authority's changed policy.The gross turnover in sportsbook was SEK 10.3 billion, which is all-time high and an increase by 16% compared to the fourth quarter last year. Sportsbook margin was 6.0%, which is lower than the 7.3% margin last year and also lower than the 2-year rolling average margin of 7.3%. As indicated in the Q3 trading update, sportsbook margin in October was the lowest sportsbook margin ever for a single month for Betsson. This comes from unusually high share of winning favorites, primarily in Champions League in Football. Sportsbook revenue decreased by 11% and amounts to SEK 407 million and represents 26% of the group's total revenue. License revenue from B2B customers decreased slightly from SEK 302 million in Q4 2020 to SEK 300 million in Q4 2021.Breaking down the revenue by region, we see a decrease in Western Europe and the Nordic region, whilst the CEECA region and the Rest of the World region grow. When focusing on the Nordic region, we see a decrease of 8% year-over-year, mainly explained by decreased sportsbook revenue due to lower-than-normal margins. Sweden continue to develop well and Betsson's market share has continued to increase. In Denmark, Casino revenue increased both compared to the previous quarter and the corresponding period last year and the underlying activity in the sportsbook is still high.In both Norway and Finland, revenue decreased year-over-year, driven by a low sportsbook margin. Revenue from Western Europe decreased by 57% or by SEK 262 million driven by the decreased casino revenue and is explained by the German market due to changed regulatory landscape and due to the decision to stop accepting Dutch customers as of end of September following the Dutch Gambling Authority's changed policy. The Italian market is performing well and shows growth year-over-year and quarter-over-quarter, mainly driven by strong development in casino turnover.The CEECA region increased by 11%, where casino contributed to the growth. Basically, all markets reported all-time high revenue in this quarter. Croatia and the new market Greece, where Betsson launched in June reported continued positive trends in activity and revenue performance, which creates good foundations for further expansion in the region. The operations in the Baltics are also developing well and reported all-time high in the quarter, primarily by increased revenue and driven by cross-sell from the Euro 2020.Revenue from Rest of the World grew by 41% compared to the same period last year and the growth comes from both sportsbook and Casino. The region's growth is mainly driven by Peru and Chile, where Peru showed all-time high revenue again and where Betsson is the market leader. The acquisition of Inkabet has further strengthened Betsson's position in the LatAm region.In Brazil, we see revenue growth year-over-year and Betsson continue its efforts to strengthen the brand awareness through different activities, including the activation of Betsson ambassadors before the upcoming market reregulation. Revenue from markets where Betsson pay local betting duties constitute 37% of the group's total revenue, which should be compared to 34% in the same period last year.When looking at EBIT development year-over-year, we have seen that revenue has decreased and following that, we can conclude that cost of services provided has also decreased. This is mainly explained by lower cost of affiliate and partner commission. Gross profit has decreased by SEK 124 million compared to the same period last year, corresponding to a gross profit margin of 62%, slightly lower than last year. Marketing spend was lower than previous quarter last year and constitutes 16% of revenue and 23% when including affiliate marketing as well.Personnel expenses has increased in the fourth quarter compared to the same period last year due to geographic expansion and increased focus on the tech side of our organization. Other costs increased by SEK 30 million and amounts to SEK 235 million. The increase is mainly driven by consultancy costs from investments in development of the B2B sportsbook and increased cost for hosting services.When breaking out costs related to the development of new markets, this sums up to approximately SEK 68 million in the quarter, of which SEK 80 million is attributable to the U.S. expansion. Remaining SEK 50 million consists of SEK 18 million in marketing costs, SEK 9 million in personnel cost and SEK 23 million in other costs. EBIT amounts to SEK 211 million and EBIT margin is 13.2%. Organically, EBIT decreased by 9% to SEK 288 million. This result should be seen in the light of the low sportsbook margin and the loss of contribution from the Dutch market. Normalized for that, the results should have been one of the strongest in Betsson's history.Moving on to the cash flow and the financial position of Betsson. We see cash flow from operating activities amounting to SEK 134 million, driven by operating income, however, negatively impacted by changes in working capital by some SEK 156 million in the quarter. Impact on working capital is mainly explained by increased PSP balances due to more bank holidays in the end of the year impacting the clearing of the accounts. This is a seasonal pattern that we see every year.Cash flow from investing activities amounts to SEK 299 million and mainly relates to own development and the acquisition of Inkabet. Cash flow from financing activities impacted the cash flow by SEK 154 million and related to repayment of the revolving credit facility, which is now unutilized. Betsson has at end of December, a net debt position of SEK 26 million and an equity ratio of 63%.And by that, I hand over to Pontus again to present the proposed dividend and take us through the trading update followed by a regulatory update.
Thank you, Martin. Following the strong year of 2021, the Board has decided to propose a distribution to the shareholders of SEK 3.94 per share through an automatic redemption program. And for the trading in Q1 so far, up to the 3rd of February, revenues were up by 4% compared to the full first quarter of 2021. Adjusted for currency, revenues were up by close to 9%. So a pretty strong start for the year, I would say, comparing to the last year that contained at the time, of course, the Netherlands revenues.So now onto the regulatory update. On the regulatory side, Norway has notified DNS blocking to European Commission with no comments from the commission. The Finnish Parliament has decided on marketing restrictions, which are now enacted and blocking payments, which will be activated in 2023. Sweden has terminated its COVID-related restrictions. Georgia has decided on increased taxes for Casino, ban on gambling marketing and raise of the legal age for gambling entering into March 4, 2022. Lithuania has decided on increased taxes with effect from July 2022.So to summarize the fourth quarter report, 2021 was a strong year with record revenues and a strong result, which will power the dividend that will be proposed to the AGM later this year. We saw a healthy result in the fourth quarter, considering the challenging start we had, where especially Rest of World and CEECA performed strong. And we see a solid outlook for 2022 and a good start of the year. The U.S. operation is on track to be launched in the first quarter, exciting launch in Argentina and expected launches in Mexico and Canada.So now I think it's time for Q&A.
Excellent. Thank you for the presentation, Pontus and Martin. And before we start the Q&A, just a reminder that if you have any questions, you can dial in and follow the instructions or you can visit the web page and write your questions there. And before I hand over the word to the operator, I would like to ask you, Pontus and Martin. Is there something -- some key takeaways that you would like to highlight from full year of 2021? If we start with you, Pontus.
Yes. I think looking back at the full year, I think the fact that we produced quite a strong profit, even though it's our strongest year ever in terms of investments into new markets and new technology. And that's a very healthy sign I believe that we can deliver such strong profits whilst investing a lot into the future.
Martin?
Yes, on that very same theme, I think that I'm actually proud to see that our diversified business model is making us very resilient to unforeseen changes such as we have seen in this quarter with the Dutch regulation coming into change and still being able to perform really solidly.
Let's check with operator then if we have any questions on the line.
[Operator Instructions] Our first question comes from Oscar Ronnkvist, ABG.
So just a few ones from me. Starting off, the Turkish lira has fallen significantly year-over-year and the quarter obviously had a low sportsbook margin yet you managed to keep up the B2B revenues flat. Is this due to Turkey outperforming materially? Or is it due to the fact that your new contracts with ibet and ProSieben constitutes a significant share of the B2B revenues?
The new B2B partners that you mentioned, they are growing strongly, but they are, of course, smaller. They all have started quite recently, whereas we have been working with Ryan for many, many years. So they still contribute strongly.
Next one, yesterday, your sector peer Kambi, so another customer going in-house with their sportsbook. What is your view about that in terms of your B2B launch in the U.S. primarily, but now also in Europe as Kindred has announced launching a proprietary sportsbook?
Yes. I think we can say that running your own sportsbook is not something which is new to us. We have been doing that for 20 years and we can see the rationale for that. At the same time, we know that that's a highly complex business. It takes time to build up. Not everybody can do that. And as we can see in Europe and all other markets. there's also a need for B2B supply because not every operator can operate or want to operate their own sportsbook. So we still see great business opportunities for B2B sportsbook in the future.
Next one, can you discuss your view about the Norwegian and Finnish markets? Do you expect them to regulate in any time soon?
It's hard to say. If we start with the Norwegian market, there are certain initiatives going on there. In terms of the Finnish market, it's hard to tell if they are going to open up for licensing. There has been discussions and we will have to wait and see.
All right. So just a final one here. Your Western Europe business are down like SEK 260 million in revenues from Q4 last year, while the Netherlands had no marketing costs in Q4 last year. Are you still confident in your estimation of SEK 25 million per month and EBIT impact from the Dutch operations? Or do you think that could vary out?
We are still confident in that estimate that we gave. And you should keep in mind also in sort of the drop in the Western Europe region, you also have the drop from the Dutch market -- sorry for the German market.
Our next question comes from Martin Arnell, DNB.
I want to ask you, firstly, on this performance with an active player intake, where you're actually up quarter-on-quarter despite the temporary Dutch exit. Can you elaborate on the intake? What is driving that? Is it purely the new markets in LatAm? Or any color on that?
It's the highest figure ever in active clients. And -- but if you look at the customer intake, as such, it's more or less on par. It's a little bit higher than the same quarter last year if you clean out some of the countries where we are not active anymore. But I think we have managed to engage our existing customer base a bit and get them going. So we have managed to get this quite high base of active users in the quarter.
I'm thinking about sort of how we should see that in light of your marketing to sale because it seems down quite a lot if you exclude the Netherlands revenue. Have you changed anything in your marketing strategy? And is the sales -- marketing to sales ratio sustainable level here?
If you look at the marketing ratio, it is a small shift downwards compared to the same quarter last year. It's not a big one. Of course, we have reallocated our efforts a little bit and moved it to markets where we see better traction and better effect of the marketing initiatives. But I think for the long term, we have no ambition really to bring down the ratio in relation to sales going forward.
And the start to Q1, you're up 9% in local currency even without the Dutch revenue. What's driving that?
Yes, we are successful in many markets. Activities has taken on very well for the start of the year. Of course, the revenues from the sportsbook is more normalized than it was for the average over the last quarter. And it's a good start with a lot of activities and we're just going to crank on to keep that momentum going.
And as we saw out in the end of Q4, we have a good traction in both the CEECA region and the rest of the world where we saw all-time high in basically all B2C markets in the CEECA region in Q4 and also growth in the LatAm region. So that is continuing with it.
Okay. And maybe a tough one, but do you expect to be able to continue to grow year-on-year up until you possibly receive the Dutch license later this year?
We can't answer really that -- we can't give that prediction. We have a strong momentum. We have a lot in the pipeline that's going to happen going forward. So we have a good view on the rest of this year, but we're not going to promise anything here to the market.
All right. And the Dutch license application, how are things progressing there for you? Are you close to be able to file? And when do you expect to receive the license based on [indiscernible] comments earlier?
We are on our time line for the file of the application and we have done the work, which we are supposed to do at this point of time. We will hand in the application according to plan. And then it's up to the authorities to handle the application and we'll see when we get the license.
I want to ask you on the U.S., North America, of course. The timing for B2C in Colorado that you said end of Q1, right? What kind of investments should we expect that this will require?
I think the big investments for the U.S. market has already happened. It's going into the product development and the setting up of the business. We start with a totally new product in a totally new market. So we will not put a lot of money. It will not have any big impact on the cost side on the marketing initially. We want to start off slowly and we want to build up over time.
All right. And then you will try to add B2B partners. I think you said in the -- or in the presentation for the rest of the year, are you looking to close deals here in the near term and possibly have U.S. revenue already this year?
Of course, I would like that to happen if possible. It's not fully in my control, of course. But when we start operating the sportsbook live in the U.S., that's actually when we start to have a good position to offer our sportsbook to the B2B market. So that's the activities is going to increase, of course, from the launch of our operations in Colorado. And then we will see how long it will take to get the first client on board.
And what kind of clients are you looking for?
We are looking for different kinds of clients, but obviously, clients that has high ambitions and that needs a high-quality sportsbook and that wants to stand out in the U.S. market.
And final question on Canada, Ontario. Do you expect to be able to be live early April with Betsafe there?
Early April, I would say. I don't really expect that we will be in the licensing regime, but I'm sure we will handle in our application not in a far time distance from now. And we will see when we can get the license and start operation under the licensing scheme.
Our next question comes from Georg Attling, Pareto Securities.
Just a couple of questions for me, starting with Georgia. What's the current run rate of marketing there? And how do you expect the new regulation to impact the financials once the regulation is in place?
Obviously, there's going to be less marketing costs when we can't market to the same extent as we have done so far. And it remains to be seen how the other restrictions impact the business there. Our local team is quite confident that we will be able to operate similar as of today, but it remains to be seen.
And with the new age limit, do you think that will have any effect at all? Or how do you view that?
Yes, we believe that it will have an effect. Hopefully, it will not be a huge effect, but it will have an effect.
And continuing on the regulatory side in Brazil, when do you expect those flights that regulation to be in place? And how should we view the time line of getting a license?
That's hard for me to comment on because that process hasn't been very strict so far. So I can't comment on that. The only thing I know is that once the process gets going, we have everything that we need in place in order to fit into that process and get the license as soon as possible.
And then just a final question. Your cash flows obviously leads through for more M&A? Or are you looking for potential acquisition targets in LatAm or in North America or which markets are you looking for acquisitions?
Yes. M&A is a part of our growth strategy. And as you all know, we did a couple of strategic M&As last year and we are evaluating a lot of different possibilities as of now, and I'm sure we will see more during the year. I would be surprised if we didn't do any kind of M&A activity during the year. So we will continue to kind of fuel our strategy by M&A going forward. And as you mentioned, we have a very strong balance sheet and we have good position to do M&A.
And still that should leave room for either high dividends that you currently have or buybacks? How do you view the potential buyback program? Last year, you didn't do any, but something that you're trying to implement?
No. That's, of course, something we always evaluate, and that is part of the sort of the strategy and we also are mandated by the AGM to do share buyback. So that is something that is constantly on our minds.
[Operator Instructions] Our next question is from Simon Davies, Deutsche Bank.
Three from me, please. Firstly, we've obviously seen an awful lot of volatility in the sports margin, but overall, your sports margin remains relatively low versus the peer group. What do you think would be a realistic medium-term target for that? Presumably, a lot come down to mix. But as you introduce more accumulator type bets, there should be some structural upside presumably to margins.
I think in relation to peer groups, it depends a lot where you have the bulk of your traffic, the bulk of your clients and some specific markets where our peer groups are present, and we are not -- they have a different taxation, which kind of pushes for different margin in the sportsbook. I think we have a pretty stable rolling average and we have no intentions to deviate from that really. As we have seen in the fourth quarter, there can be short-term deviations, but we don't expect our long-term average margin to go up or down too much from what we have as our average right now.
7.3%.
Yes, 7.3%, if it's somewhere between 7%, 7.5% or even higher than that, I think you can say that we hover around 7%, 7.5%.
And secondly, so far in Q1, the Turkish lira is down about 40% against the Swedish krona. What kind of impact is that having on your B2B profits? And are there any offsets there? Are you seeing some compensation in terms of volume growth?
Of course, it's not helping the B2B revenues when the currency is going in that direction. Fortunate enough, our business partner has managed to keep the momentum quite high and they're running a healthy operation. So I hope we can continue to see at least stable revenues from the business-to-business partner.
And that's just is pretty impressive volume growth.
Yes.
And lastly, just on Georgia, how important a market is Georgia to you? Can you give any indication?
It's a market where we are quite big. It's one of our, I would say, top 10 markets. So it's an important market and we are present in the market. We have a very experienced team over there. So as I said before in the presentation, we will remain, we will continue to struggle in Georgia, and we hope to be able to operate a profitable business also in the future.
Our next question from Oscar Erixon, Carnegie.
Two questions for me. Quite an impressive performance here in the CEECA region despite everything with the Turkish lira and also seeing B2B revenues slightly down or largely flat. You talk of a broad performance here. Are there any markets that sell out? What is the sort of most sizable market contributing here year-on-year percent?
Yes. I would say that there are many markets that contribute. And as I used to say, I read our internal report every morning and I'm so happy to see that we have substantial revenues from more than 20 different markets. And that's a relief because things happen in certain markets from time to time, and then it's very good to have this broad diversified geographic spread that we have. If I should mention something, then it's LatAm. As you all know, we have been doing substantial efforts in that region and we are doing really, really well there. So this is something that stands out, of course, and that I hope that we can continue our strong growth in that area.
And then on the trading update. What can you say about the sportsbook margin? Is it rather in line with historical average? Anything else that stands out here at sort of Q1 in terms of changed trends, certain markets that you have mentioned?
Yes. There are no certain trends for any specific markets that stands out for the start of the year, and the sportsbook margin is, I would say, nothing that stands up -- stands out at either side nor upwards or downwards. It's hovering along the long-term average. So it's business moving on.
And then just a final one for me, actually, on the cost side. Looking at Q4, you had OpEx of around personnel expenses and other external costs, I should say, of around SEK 480 million. First question for you, Martin, what do you see ahead here for 2022? Should we expect the cost to continue to increase clearly here in 2022? Or have you sort of reached a level where the cost growth is to flatten out a bit?
We've taken quite a lot of investments in new markets, as we mentioned, and we have also taken cost in the U.S. expansion. And as Pontus mentioned earlier, the majority of the investment has been taken already for the U.S. market. So we don't expect that sort of cost base to increase from where we are right now. We will, of course, always continue developing our technology and everything. So -- but we don't see any events that could sort of trigger any material big uplift in that, no.
I think we've -- that's correct. And we took a step upwards last year and then we're building from that new level.
We have no further questions. Speakers, back to you for the conclusion.
Let's go through the questions from the web then. If we start with the Asian region, are you having any plans on launching there? And if you do, could you please elaborate a bit on that?
No plans for the time being, we have a jam-packed agenda for other areas. So no plans for Far East at least.
And you mentioned earlier regarding the geographic diversification. Could you please elaborate a bit on like the percentage part of each market? Are there any markets that stand out or like have 20% of the exposure for EBIT, for example, if you look at the diversification of the business?
If we look at certain countries, I would say no. It's -- of course, in countries where we have entered more recently, they don't contribute as much to the EBIT, whereas some countries where we have been around for a very long time and built a big customer base and a big brand presence there, we have a higher level of EBIT, but it's very much spread out.
And if we look at long-term targets, do you have any specific goals, let's say, 5-plus years out in terms of revenue and profits?
We have internal, of course, goals that we work towards, but this is something that we have not communicated to the market. So we can't comment on it really.
The next question then. Do you have any plans on launching fantasy sports in other markets than Brazil? I'm especially thinking of the Nordic markets where competitors [indiscernible] and Norsk Tipping have launched Fantasy Sports and also the Greek market?
Yes. We are always evaluating our product offering in every market. And I can say that we are not planning on offering Fantasy Sports in the short future to any other markets than what we have today, but we will see what happens.
Next question then. Which of the upcoming regulations will have the biggest impacts on the profits for 2022?
That's a tough one. Martin, what do you say?
You never know what's going to happen with the regulations. That's for sure. So I think that's a tricky question to answer. We're looking in hindsight. We know that for 2021, the Dutch regulation was impacting us, of course. But what's going to happen in the future, I can't really tell. So hard to answer.
And another question here regarding the expansion. Can you say something about the development in the Kenyan market?
Yes. we launched in Kenya some time ago, as you all know. We're a little bit unlucky with the -- coincided with the COVID pandemic and there was a lot of different impact on abilities to market ourselves and the footfall season was impacted as well. Now, there's a different situation in the outlook. So we're going to start off from a pretty low level now and see where it will take us.
Next question. What is the plan with the bond expiring later this year?
That will come later on. We can't really comment upon that right now.
Then we'll go to the next question. How is your momentum in LatAm going into 2022? And do the LatAm markets have a higher sportsbook margin compared to Europe.
Yes, the momentum is really good. As we have mentioned, it's a very strong region for us in the quarter and in the year. And obviously, from what we have communicated, it's a market where we put a lot of efforts and a lot of hope for the future. But hope doesn't happen -- it doesn't happen by itself. We put people there. We put sponsorships in place. We have a lot of initiatives. So yes, we have a big belief in that market for the rest of the year. As regards to the margin, it's not much different from what we see in other markets. It contributes to our rolling average, which has been pretty stable over the years, as you can see, even though the LatAm market is contributing more to that average today than what it did before.
Next question then. How is the Spanish project developing? And what are your thoughts on France?
Yes. If I start out with France, -- it's a market which we have been looking at. We are not present in France and it's quite a different operational environment with taxes and it's sportsbook only. We're going to follow what's going on in the market. And if there are any changes to the tax or on the product side and evaluate if we want to try to enter that market. For Spain, I don't have much to comment on that. It's a market where we are operating, but it's not one of our larger markets for the time being.
I think that was the final question for the day. I think that was the time we had for the Q&A session today. A big thank you to all our viewers and to all of you who have sent in questions to us. And with that said, I hand over the word to you, Pontus. Any final words for the audience?
Yes, thank you for following this presentation. And myself and Martin were really proud to announce this quarter. It's been a tough quarter in many ways, but it also shows that Betsson stands strong when the wind is blowing. And I'm so proud of what we achieved during the whole year of 2021. And I hope we're going to keep on performing in 2022. Thank you.