Pontus Lindwall explores Betsson's Q3 profitability and 'unexpected' challenges in Brazil

Betsson achieved record Q3 2026 revenue of €326.5m, up 10.4%, but net income fell 44% to €28.2m and EBITDA dropped 23% to €63.4m. Revenue from licences supplied to B2B customers fell 39% to €46.7m, and betting duties increased 68%, squeezing profitability. The acquisition of Rhino Entertainment’s Canadian operations strengthened Betsson’s consumer business and technology offering. Nine-month revenue reached €922.1m. Early Q4 trading showed promising growth; however, Betsson cautioned that this comparison is only preliminary and should not be interpreted as a quarterly forecast.

In an exclusive interview with Global Gaming Insider, Betsson CEO Pontus Lindwall discusses the company’s record Q3 revenue and B2B challenges, expressing optimism about sequential quarterly profit growth despite a year-on-year decline in net income. Lindwall reflects on the company’s cautious approach to Brazil, which proved sensible amid market uncertainty.

Betsson achieved record quarterly revenue, yet net income fell 44%. What needs to change for revenue growth to translate into sustainable earnings growth, and what is the expected timeline for net income recovery?

I get the same question all the time! But, yes, first of all, record revenues are good. We're growing the company, with very high activity levels. The third quarter showed a different mix between the B2C business, which is mostly locally regulated, and the B2B business, where we get paid for technology. That's why our profit margin was lower in the third quarter than in the same quarter last year, and it's the same reason behind the EBITDA drop.

What will it take to return to profit growth? We're already growing profit on a sequential quarterly basis. I hope we can keep growing profits like that. Obviously, growing our B2B business further would make the business more profitable. Our ambition is to grow both the B2C and B2B sides, and I think we're in a good position to do that.

Active customers reached a record 1.9 million, up 40% year-on-year. How is the cost of acquiring and retaining these customers evolving and is the growth generating sufficient returns on the B2C side?

B2C growth in the third quarter was supported by the second half of the World Cup tournament. That was a great opportunity for us to market and build our customer base, and we did. That's reflected in the significant increase in active customers.

We measure all our marketing and attribute it to different geographical markets. We're quite skillful at making sure we get good returns on our marketing investments. That's not a problem. When we invest heavily in marketing, customers come in, and then it's up to us to entertain them for as long as possible and generate returns on that investment over time.

Latin America again delivered record revenue growth, but the Brazilian market shutdown creates uncertainty. What are your hopes for Betsson in the region following Brazil's ban, and which markets remain a key focus?

We're quite big in several markets. Argentina is one where we're market leaders, and we also have a strong position in Peru.

What happened in Brazil was unexpected. We had a licence there, but fortunately, we hadn't invested too much. We stayed on the sidelines to see how the market would develop. We saw political instability and risk, along with intense competition in marketing.

We decided to be cautious in Brazil. Given the current situation, we're glad we did, but we must also acknowledge that nobody in the market foresaw this decision.

Regarding product verticals, casino revenue rose almost 14%, while sports revenue remained mostly flat. Is this a temporary imbalance, or is Betsson becoming structurally more dependent on casino for growth and profitability?

No, this isn't structural. Casino is a more stable product in terms of profit margin, whereas the sportsbook depends heavily on the outcome of sporting events. Sometimes results favour players, and when that happens, as in this case, sportsbook margins are lower. We try to grow both products side by side because we think they complement each other very well.

You mentioned a positive start to October and expressed confidence in a return to earnings growth. What are Betsson's key financial targets for Q4, and what gives you confidence that profitability will improve?

We have no public guidance for the fourth quarter, but Q4 is usually very active, with many popular sporting events, so it's a good quarter. It has started strongly, with high activity levels, which is very promising. We're optimistic about Q4. And, of course, we're even more optimistic about 2027.