Betsson has reported revenue of €285m (£248.2m) in its preliminary filings for the first quarter of 2026, which would represent a 3% decrease when compared to the Stockholm-listed operator’s results from Q1 2025.
Casino revenue for the quarter is expected to decrease 3.7% year on year (YoY) to €204m, down from €212m, while sportsbook revenue should remain flat at €80m and leave a margin of 8.4%.
Revenue from “other gaming products” is expected to come in at €1m for the quarter, a decrease of €1m on Q1 2025.
The majority of revenue is derived from the Central and Eastern Europe and Centra Asia (CEECA) region to the tune of €96m, down 21.3% YoY from €122m .
Latin America is anticipated to generate €93m, up 24% on the previous year, with Western Europe contributing €61m, up from €56m.
The Nordics region is expected to contribute €31m, with the Rest of the World adding a further €4m, an increase of €1m.
Licence revenue from the company’s B2B arm looks to have fallen 43.3% YoY to €51m, with the decrease attributed to “lower revenue at one of Betsson’s B2B customers”.
Betsson AB noted that the share of revenue from locally regulated markets reached record levels (73%) during the quarter.
This in turn is expected to lead to increased gaming taxes, with the business shelling out €53m during Q1, up 17.7% YoY from €45m.
Operating income for the quarter is expected to slump almost 47% to €34m.
The filing also noted that the combination of a higher share of revenue from locally regulated markets and lower share of license revenue from the B2B business negatively impacted gross margin and EBIT during the quarter, with gross margin expected to fall to 57.6%, down from 64% last year.
Betsson president and CEO Pontus Lindwall 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-€15m on a quarterly basis. We still believe these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects.
“Our B2B business, on the other hand, 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.
Following the update, Betsson shares plunged almost 18% before recovering slightly to almost SEK94, at the time of writing.
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The post Betsson expects Q1 operating profit to slump 47% first appeared on EGR Intel.
Operator’s shares plunge as margin pressures bite, while CEO Pontus Lindwall says investing in not-yet-profitable B2C markets has impacted the bottom line
The post Betsson expects Q1 operating profit to slump 47% first appeared on EGR Intel.