Betsson achieved group revenue growth of 8% in 2025, although higher taxes from regulated markets squeezed profits.
On Thursday, Betsson released its results for FY25, a year in which the Swedish giant reached group revenue of €1.197 billion, up from €1.107 billion generated the year prior.
However, EBITDA dropped slightly to €313.7 million from €316 million in 2024, while operating income also fell from €256.7 million to €253.1 million.
Additionally, net income stood at €182.4 million, down from the €183.7 million recorded in 2024.
The full-year results were hampered by Q4 revenue decreasing by 1% year-on-year to €303.9 million.
Focus on regulated markets
Over two-thirds of Betsson’s Q4 revenue came from locally regulated markets, with the company holding local licences in 24 countries.
The Central & Eastern Europe and Central Asia (CEECA) remained its biggest sector with revenue of €120.4 million, although this was down 8.9% year-on-year.
Lower sportsbook activity in Estonia and Georgia was largely behind this decrease, while Croatia and Greece both reported increased revenue.
LatAm was Betsson’s second biggest revenue generator, increasing 7.9% to €84.3 million thanks to strong performance in Peru, Argentina and Colombia.
Western Europe also increased its revenue by 15.5% to €60.8 million, with all-time high revenue in Italy. However, revenue from the Nordics dipped from €40 million to €33.6 million.
Betsson’s long-term ambition is to outperform market growth, either organically or via acquisitions. The company suggested it would discontinue B2C operations in markets where local regulation isn’t a strong possibility in the near future.
EBITDA down 20% for the year
EBITDA plummeted 20% year-on-year to €69.3 million. CEO Pontus Lindwall attributing this to “lower B2B revenue, higher gaming taxes and continued investments in product and technology”.
Lindwall said: “The share of revenue from locally regulated markets continued to increase and reached an all-time high of 68% (up from 60% last year), which consequently led to higher gaming taxes.
“We continued to invest in the product and technology organisation to strengthen the customer experience and our long-term competitiveness, which meant higher personnel costs. Higher gaming taxes and increased personnel costs had a negative impact on profitability and operating income during the quarter.”
A positive future outlook for Betsson
Despite an underwhelming Q4, Lindwall remained optimistic over Betsson’s future outlook. At the end of FY25, Betsson had cash and cash equivalents amounting to €322.7 million.
Lindwall maintained confidence in the company’s ability to return value for shareholders. “Despite the lower profitability, Betsson stands strong operationally with a competitive product offering, increasing brand awareness and technology at the forefront,” Lindwall explained.
“Our strong financial position provides us with good conditions to invest in long-term, profitable growth and to deliver returns for our shareholders. During the quarter, the board of directors initiated a share buy-back programme corresponding to €40 million, and an ordinary dividend of €0.66 (€0.657) per share has been proposed for 2025.”
He believes the upcoming World Cup tournament is a key opportunity to attract new customers.
Casino up, but sportsbook underperforms
In Q4, casino remained the dominant contributor to Betsson’s revenue, accounting for 72% of the total at €219.8 million. The company expanded its casino offering during the quarter with 553 new games. Of these, 35 came with a period of exclusivity for Betsson’s brands.
However, Betsson’s sportsbook segment underperformed, with revenue falling 9.5% to €82.7 million. Sportsbook accounted for 27% of the total group revenue, down from 30% in the same period of 2024.
Original article: https://igamingbusiness.com/finance/betsson-reports-fy25-revenue-growth-but-higher-taxes-squeeze-profits/
