The Swedish-listed company reported revenues of €285 million in the first quarter of 2026, down 3%, impacted by lower income from a major client in its technology platform division.
The result represents a 3% decline in consolidated group revenues to €285.3 million, although organic growth stood at 4%. EBITDA fell 36% to €50 million, while operating profit (EBIT) dropped to €34 million compared to €64 million in the same period of 2025, with margins decreasing from 21.8% to 11.9%.
Latin America and Western Europe drive B2C growth
The B2C business was the highlight of the quarter. Latin America posted 25% growth and now accounts for one-third of total group revenue, driven mainly by Peru, where Betsson has an established brand and competitive product offering. In Western Europe, Italy was the main growth engine, gaining market share in both sports betting and casino. Central and Eastern Europe and Central Asia (CEECA) also contributed to growth, led by Croatia and Greece.
The company acknowledges it continues to invest in several unprofitable B2C markets, which reduces operating profit by approximately €10–15 million per quarter, but it maintains confidence in their long-term profitability potential.
B2B segment drags profitability
The decline in the B2B business — from €90 million to €51 million — is explained by the loss of volume from a single client, although Betsson notes that activity from this client has stabilized since early December. In the medium term, the group expects to recover B2B revenues with both existing and new partners.
“Higher proportion of revenue from locally regulated markets is key to explaining lower profitability compared to the previous year,” said Betsson CEO in the Q1 2026 report.
Indeed, revenue from locally regulated markets reached 73%, a record high compared to 59% a year earlier. While positive in terms of sustainability and regulatory compliance, higher taxes and licensing costs in these markets are putting pressure on margins.
Canada acquisition and outlook
In March, Betsson completed an agreement to acquire the B2C business of Rhino Entertainment Group, including a Canadian licence and technology assets for its B2B division. The deal aligns with the company’s strategy to expand into new regulated markets and strengthen its platform offering.
On the product side, the group has introduced improvements such as Bet Builder functionality, AI-powered match previews, and enhanced live statistics for its sports betting vertical.
For Q2, the company reports a positive start: average daily revenues up to 21 April are 3.7% higher than the Q2 2025 daily average, although with sports betting margins above the last eight-quarter average. Betsson expects the FIFA World Cup, starting in June, to boost activity and customer acquisition.
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