Betsson reports revenue decline in preliminary Q1 results

Betsson AB reported lower operating profit in Q1 2026, as weaker B2B performance and increased exposure to regulated markets weighed on margins despite relatively stable revenue.

The group posted preliminary revenue of €285m ($310m), down from €294m a year earlier, while EBIT declined to €34m from €64m for Q1 2025, a contraction of nearly 47% year-on-year that underscores the degree to which the revenue mix, rather than top-line volume alone, is shaping the group's bottom line.

The Swedish operator pointed to its B2B segment as the main drag, with license revenue dropping to €51m from €90m, reducing its share of total revenue from 31% to 18%. The decline was largely attributed to reduced activity from a single unnamed client, a concentration risk that has now materialized across two consecutive quarters and that management acknowledged remains a near-term headwind.

At the same time, revenue from locally regulated markets reached a record 73% of group total, up from 59% in the prior-year period. While this reflects continued progress in Betsson's regulated market strategy, it also drove gaming taxes higher, increasing to €53m from €45m, and contributed to gross margin compression from 64% to 57.6%.

On a product basis, casino revenue declined to €204m from €212m, while sportsbook revenue remained stable at €80m, with margin improving slightly to 8.4%.

Regionally, Latin America was the strongest-performing market, growing to €93m from €75m, continuing a trajectory that has made the region one of the group's most significant growth engines. In contrast, the CEECA region, Central and Eastern Europe, Central Asia and Africa, fell to €96m from €122m, a drop that directly reflects the B2B client impact.

Western Europe posted modest growth to €61m, while the Nordics declined to €31m from €38m.

Pontus Lindwall, President and CEO of Betsson AB, said: "Our B2C business continues to perform well overall with good growth and significant contribution to operating income. Nevertheless, we are investing in several B2C markets that are not yet profitable, negatively affecting total EBIT by approximately 10-15 million euro on a quarterly basis. We still believe that these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects."

Regarding B2B, he added: "Our B2B business continues to be weighed down by lower revenue at one of our customers. However, since the start of December, this B2B customer has seen a stabilisation in average activity levels. In the slightly longer term, I am excited about growing our B2B revenue with existing and new partners, as we continue to follow our strategy to generate shareholder value over time."

Looking ahead, early Q2 trading data showed average daily revenue up 9% compared to the Q2 2025 average, while sportsbook margins continued to track above the rolling eight-quarter average.

The figures are based on preliminary results and may be subject to revision. Betsson is scheduled to publish its full Q1 2026 interim report on April 24, which will provide a more detailed breakdown of performance across segments and markets.