Betsson AB has issued a preliminary warning on its first-quarter results, signalling margin pressure across its core markets as higher costs and taxes weigh on performance.
The Stockholm-listed operator expects group revenue of €285 million ($334 million), down 3% from €294 million ($344 million) a year earlier, while earnings before interest and tax (EBIT) are forecast to fall 47% to €34 million from €64 million. The decline reflects a changing revenue mix and increased cost pressures, primarily linked to elevated tax impacts.
Regional performance was mixed, with growth in Latin America and Western Europe offset by declines in Central and Eastern Europe, Central Asia (CEECA), and the Nordics. Revenue in Latin America rose to €93 million from €75 million, while Western Europe increased to €61 million from €56 million. In contrast, CEECA fell to €96 million from €122 million, and the Nordics declined to €31 million from €38 million.
Across product segments, sportsbook revenue remained stable at €80 million, while casino revenue dropped by €8 million to €204 million. The company’s B2B division recorded a significant decline, with revenue falling to €51 million from €90 million, reducing its contribution to 18% of total group income.
Shares in Betsson fell sharply following the announcement, dropping from 104.8SEK (£8.37) to 81.95SEK within minutes before recovering to 91.30 SEK, still down more than 13% on the day.
Chief Executive Pontus Lindwall acknowledged the challenges in the B2B segment. “Our B2B business continues to be weighed down by lower revenue at one of our customers,” he said. “However, since the start of December, this B2B customer has seen a stabilisation in average activity levels.”
He remained optimistic about future growth, stating: “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.”
Lindwall also pointed to continued strength in the company’s consumer-facing operations. “Our B2C business continues to perform well overall with good growth and significant contribution to operating income,” he said.
However, he noted that ongoing investments in developing markets are weighing on profitability. “Nevertheless, we are investing in several B2C markets that are not yet profitable, negatively affecting total EBIT by approximately €10-15m on a quarterly basis,” he said. “We still believe that these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects.”
For the full year 2025, Betsson reported revenue growth of 8% to €1.197 billion, while earnings declined slightly by 1% to €313.7 million, with higher taxes beginning to impact results from the fourth quarter.
Early second-quarter trading has shown some improvement, with average daily revenue up 9% year-on-year to April 8 and sportsbook margins running above the eight-quarter average.
Betsson is scheduled to publish its full interim report for the first quarter on April 24 and has not provided financial guidance for the full year 2026.
Original article: https://www.yogonet.com/international/news/2026/04/13/118522-betsson-warns-on-q1-earnings-as-margins-come-under-pressure
