Betsson’s Profit Squeeze Exposes Industry Fault Lines as Global Strategy Intensifies
Betsson’s latest numbers don’t look dramatic at first glance. Revenue is only slightly down. The business is still growing in key markets. But once you dig into the details, it’s clear the company is under more pressure than the headline suggests.
For the first three months of 2026, revenue came in at €285.3 million, a small drop from €294 million last year. That had already been signposted earlier in April, so there were no surprises there. The real story sits behind the top line.
The B2B Problem
The biggest hit came from Betsson’s B2B division. Revenue from system delivery fell sharply to €51 million, down from €90 million a year ago. That’s not a minor fluctuation. It’s a steep drop, and it seems to come down largely to reduced activity from one client.
That kind of reliance is always risky, and this quarter shows why. When that business slowed, it dragged profitability down with it.
EBITDA fell to €50 million, down 36% year-on-year. Operating profit dropped even more, landing at €34 million. Margins followed the same direction, slipping from 26.5% to 17.5%.
This isn’t just a Betsson issue either. Other Swedish-listed names like Evolution AB, Kambi and Raketech have also reported softer starts to the year. It points to a broader slowdown, or at least a tougher trading environment than many expected.
B2C Keeps Moving
On the other side of the business, things look healthier. Betsson’s B2C arm grew 15%, with Latin America doing most of the heavy lifting. Revenue there was up 25%, and the region now accounts for roughly a third of the group’s total.
Peru stood out as a key market, which fits with the wider trend of operators focusing more on the Americas. Europe is getting harder to operate in, so companies are looking for growth elsewhere.
Western Europe still delivered, though. Revenue rose just over 10%, helped by strong performance in Italy. Central and Eastern Europe had mixed results. Some markets grew, but overall the region declined compared to last year.
So yes, there is growth. But it is not cheap.
Growth Isn’t Translating Into Profit
Betsson is still investing heavily in markets that are not yet profitable. Those investments are knocking somewhere between €10 million and €15 million off operating income each quarter.
At the same time, more of the company’s revenue is coming from regulated markets. That share has climbed to 73%, up from 59% last year. It’s a positive shift in terms of long-term stability, but it also means higher taxes and compliance costs.
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Put those two things together and you get the current situation: revenue is growing in the right places, but margins are under pressure.
Nordics Continue to Slide
Back in the Nordics, the trend is clearly negative. Revenue from the region fell nearly 17%, with weaker casino performance in Sweden and Denmark being the main reason.
This has been coming for a while. Regulation in these markets has tightened, and the impact is now showing up more clearly in company results. What used to be a reliable core region is becoming less important.
Looking Ahead
Betsson is still pushing forward. During the quarter, it agreed to buy parts of Rhino Entertainment Group in a €64.5 million deal. The acquisition includes both B2C operations and some B2B technology, plus access to the Canadian market.
The company is also putting more into its product, especially on the sportsbook side. There’s a clear focus on improving the user experience with things like AI-driven features and better in-play data.
That ties into what’s coming next. The FIFA World Cup 2026 is just around the corner, and it’s expected to drive a lot of activity. Early Q2 trading is already slightly ahead of last year, which is a decent sign.
Where This Leaves Betsson
Right now, Betsson feels like a company in the middle of a shift. Its B2C business is growing and expanding into new regions, but that takes time and money to turn into profit. Meanwhile, its B2B arm has shown it can be unpredictable.
None of this puts the company in trouble. It still has a solid cash position and a clear direction. But the latest results show that the balance isn’t quite there yet.
The next few quarters, especially with the World Cup coming up, should give a better idea of whether that growth strategy can start delivering stronger returns, not just bigger numbers.
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Source: sbcnews.co.uk
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