Betsson issues Q1 warning as pressure mounts in core markets

(AsiaGameHub) –   Betsson AB has released a preliminary alert regarding its Q1 2026 financial results, highlighting margin performance strains across its key markets.

The Stockholm-listed gaming operator projects group revenue will hit €285 million (£248.2 million), a 3% drop from the €294 million recorded in Q1 2025. Meanwhile, EBIT is predicted to plummet to €34 million, marking a 47% decline compared to the €64 million from Q1 2025. This reflects the impact of a shifting revenue mix and rising cost pressures, which are largely tied to higher tax burdens.

Breaking down its regional performance, Betsson’s Q1 results posted growth in Latin America (€93 million, up from €75 million) and Western Europe (€61 million, up from €56 million). However, this market expansion was offset by steep drops in CEECA (€96 million, down from €122 million) and the Nordics (€31 million, down from €38 million).

While sportsbook revenue stayed flat year-over-year at €80 million, casino revenue fell by €8 million to €204 million.

The company’s B2B division also experienced a notable downturn in performance, with revenue falling sharply to €51 million versus the €90 million logged in Q1 2025.

The B2B segment’s share of total group revenue has dropped to 18%, a trend Betsson says reflects broader industry-wide adjustments, as noted in the statement that “the gross margin amounted to 57.6% (64.0) during the quarter.”

In the first 10 minutes following the 4pm CET announcement, Betsson’s stock tumbled from 104.8 SEK (£8.37) to 81.95 SEK. It has since rebounded over the following hour, and as of the time of this report (5:21pm CET) it was trading at 91.30 SEK, which still marks a daily decline of more than 13%.

Betsson’s CEO Stays Optimistic

Even with the downturn in the company’s B2B segment — which appears to be one of the factors worrying investors — President and Chief Executive Officer Pontus Lindwall stayed confident in the business’s trajectory while recognizing the existing concerns.

“Our B2B business is still being held back by reduced revenue from one of our clients,” he explained.

“That said, since the beginning of December, this B2B client has seen steadying average activity levels.

“Looking further ahead, I am enthusiastic about expanding our B2B revenue through both current and new partners, as we stick to our strategy of creating long-term shareholder value.”

Lindwall expressed a similarly positive outlook in his comments about Betsson’s B2C operations.

He stated: “Our B2C business is still performing strongly overall, with solid growth and a meaningful contribution to operating income.

“That being said, we are investing in multiple B2C markets that have not yet turned a profit, which is lowering overall EBIT by roughly €10 to €15 million each quarter.

“We remain confident that these markets have the potential to become profitable, and we will continue to regularly assess their performance and outlook.”

Looking back at the full previous year, FY2025 saw Betsson post 8% revenue growth to reach €1.197 billion, but group earnings stagnated, falling 1% to €313.7 million (2024: €316.0 million). The flat earnings were linked to the start of higher taxes hitting bottom-line results starting in Q4.

Company leadership noted improved trends, with early Q2 trading seeing average daily revenue rise 9% year-over-year through April 8, while sportsbook margins are outperforming the eight-quarter average.

Betsson will release its Q1 2026 interim report on Friday, 24^th April at 07.30 CEST. As of April 2026, the company has not issued formal full-year financial guidance for FY2026.