Betsson reports dip in Q1 revenue and EBIT amid shift to regulated markets

Betsson AB has reported a notable decline in profitability for the first quarter of 2026, as the group continues to reposition its business towards regulated markets while absorbing higher costs and reduced B2B contributions.

Preliminary figures show revenue reaching €285 million, slightly down from €294 million in the same period last year. More significantly, earnings before interest and taxes are expected to fall to €34 million from €64 million, reflecting mounting pressure on margins.

The company linked the drop to a combination of factors, including a shift in revenue mix, increased exposure to regulated jurisdictions, and continued investment in B2C markets that are not yet profitable.

A closer look at the numbers highlights how this transition is reshaping the business. Casino operations remained the dominant revenue stream at €204 million, down from €212 million a year earlier, while sportsbook revenue held steady at €80 million. Other gaming products contributed €1 million.

Despite stable sportsbook demand, overall gross margin declined sharply to 57.6 per cent from 64 per cent, largely due to the growing share of revenue coming from regulated markets. In Q1 2026, around 73 per cent of Betsson’s revenue originated from regulated jurisdictions, up from 59 per cent in the previous year – the highest level in the company’s history.

This shift has translated directly into higher costs, with gaming taxes rising to €53 million from €45 million, weighing on overall profitability.

Regionally, performance reflected changing dynamics across key markets. Central and Eastern Europe and Central Asia (CEECA) remained the largest contributor but saw revenue fall to €96 million from €122 million. In contrast, Latin America continued to grow strongly, generating €93 million compared to €75 million previously, reinforcing its position as a key growth engine.

Western Europe also posted gains, with revenue increasing to €61 million from €56 million, while the Nordic region declined to €31 million from €38 million. Other markets contributed €4 million, up slightly year-on-year.

One of the most significant drags on performance came from the B2B segment. Licence revenue dropped sharply to €51 million from €90 million, reducing its share of total group revenue to 18 per cent from 31 per cent. The company attributed this largely to lower activity from a single customer, although it noted that activity levels have stabilised since early December.

Chief Executive Officer Pontus Lindwall said the group remains committed to its long-term strategy despite short-term pressures.

“Our B2C operations continue to perform well overall, with solid growth and a significant contribution to operating profit. At the same time, we are investing in several B2C markets that are not yet profitable, which is impacting total operating profit (EBIT) by approximately €10–15 million on a quarterly basis,” he said.

Mr Lindwall added that while B2B revenues have been impacted, the company expects to rebuild that segment over time through new and existing partnerships.

Looking ahead, early indicators from the second quarter suggest improving momentum. Average daily revenue up to 8th April was around 9 per cent higher than the average for Q2 2025, while sportsbook margins have started the quarter above the rolling average of the previous eight quarters.