Betsson issues Q1 profit warning
The Swedish gambling operator is seeing the impact of tax rises in Europe.
Sweden.- Betsson AB has released an early update on its first-quarter 2026 performance, cautioning investors about margin pressures across several core markets. The Stockholm-listed online gambling operator anticipates group revenue of €285m, which would represent a 3 per cent decline from €294m in Q1 2025.
EBIT is projected to fall by 47 per cent to €34m. The company attributes this contraction to a shifting revenue mix and higher costs, particularly from increased taxation. While revenue was up in Latin America (€93m, up from €75m) and Western Europe (€61m, up from €56m), there was a downturn in CEECA (€96m, down from €122m) and the Nordics (€31m, down from €38m).
Sportsbook turnover was steady at €80m, but casino revenue slipped by €8m to €204m. The B2B division was hit hardest, with revenue down to €51m from €90m.
Despite investor concerns over the B2B downturn, president and CEO Pontus Lindwall struck an optimistic tone. He said: “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.”
On the consumer-facing side, Lindwall expressed similar confidence: “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 that these markets have potential to become profitable but continuously monitor and evaluate their performance and prospects.”
For 2025, Betsson reported 8 per cent revenue growth to €1.197bn, but earnings slipped 1 per cent to €313.7m, reflecting the onset of higher tax burdens. Early Q2 trading has shown promise, with average daily revenue up 9 per cent year-on-year to 8 April, and sportsbook margins exceeding the eight-quarter average, the company said.
Betsson will publish its full Q1 2026 interim report on April 24. It has issued no formal guidance for the year.
