Betsson Anticipates 47% Decline in Q1 2026 EBIT

(AsiaGameHub) –   Betsson has indicated a less robust first quarter, attributing the decline in margins to increased taxes, a shift in revenue composition, and a downturn in B2B income. While the full financial results are scheduled for release on April 24, the preliminary outlook suggests a modest decrease in revenue accompanied by a more significant drop in profit.

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Key Takeaways

• Betsson anticipates Q1 revenue of 285 million euro, marking a 3 percent decrease compared to the previous year.
• EBIT is projected to be 34 million euro, down from 64 million euro.
• Early trading in Q2 has shown improvement, with daily revenue increasing by 9 percent as of April 8.

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The Stockholm-listed company reported that first-quarter revenue is expected to reach 285 million euro, a decrease from 294 million euro in the prior year. EBIT is forecast to decline by 47 percent to 34 million euro from 64 million euro, with heightened tax burdens being a primary factor.

Regional performance varied. Latin America saw an increase to 93 million euro from 75 million euro, and Western Europe improved to 61 million euro from 56 million euro. Conversely, CEECA experienced a decline, falling to 96 million euro from 122 million euro. The Nordic region also saw a decrease, dropping to 31 million euro from 38 million euro.

Product segment performance was also mixed. Sportsbook revenue remained stable at 80 million euro. Casino revenue decreased by 8 million euro to 204 million euro. The most substantial impact came from the B2B segment, where revenue fell to 51 million euro from 90 million euro, resulting in this unit contributing only 18 percent of the group’s total revenue.

Investor reaction was swift. Betsson shares experienced a sharp decline from 104.8 SEK to 81.95 SEK within minutes before partially recovering to 91.30 SEK, still representing a drop of over 13 percent for the day.

Chief executive Pontus Lindwall stated:

“Our B2B business continues to be weighed down by lower revenue at one of our customers.” He added: “However, since the start of December, this B2B customer has seen a stabilisation in average activity levels.”

He also emphasized a longer-term perspective, commenting:

“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.”

Regarding the consumer-facing business, Lindwall remarked:

“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.”

Betsson entered the quarter following a mixed performance in 2025. Full-year revenue increased by 8 percent to 1.197 billion euro, while earnings saw a 1 percent decline to 313.7 million euro, partly due to increased tax pressures becoming more evident in the fourth quarter.

A positive indicator was also present in the update. Betsson reported that average daily revenue in early Q2 had risen by 9 percent year-on-year through April 8, and sportsbook margins were performing above the eight-quarter average.