Betsson Sees LatAm Growth Despite Profit Drop

Betsson Group’s first-quarter results for 2026 highlighted the continued importance of Latin America as a key growth region. Revenue from the region reached €93 million, marking a 24% increase compared to €75 million in Q1 2025.

This performance secured Latin America’s position as the company’s second-largest revenue contributor, just behind the CEECA region, which generated €96 million despite experiencing a 21% year-on-year decline.

Mixed Group Performance

At a group level, Betsson reported total revenue of €285 million for Q1 2026, slightly down from €294 million in the same period last year. Operating profit (EBIT) declined more significantly, falling to €34 million from €64 million.

Casino operations remained the primary revenue driver, contributing €204 million compared to €212 million in Q1 2025. Sports betting generated €80 million, with margins improving from 8.0% to 8.4%.

The B2B segment saw the sharpest contraction, with licensing revenue dropping to €51 million from €90 million, representing a 43% decrease. The company noted that reduced activity from a key partner has impacted performance, although recent trends suggest some stabilization.

Shift Toward Regulated Markets

A notable development during the quarter was the increased share of revenue from locally regulated markets, which rose to 73%. While this shift supports long-term sustainability, it also weighed on short-term profitability.

The change in revenue mix, combined with the reduced contribution from B2B operations, led to a decline in gross margin from 64.0% to 57.6%. At the same time, gaming taxes increased to €53 million, up from €45 million in the previous year.

Investment Impact on Earnings

CEO Pontus Lindwall emphasized that the B2C segment continues to perform strongly, contributing positively to overall results. However, ongoing investments in growth initiatives, which have yet to generate returns, have placed additional pressure on earnings.

These investments are expected to reduce EBIT by approximately €10–15 million in the coming months. Despite this, the company plans to closely monitor performance in these markets and adjust its strategy accordingly.

Lindwall also noted that while B2B activity remains affected by lower engagement from a key client, there are opportunities to expand through both existing and new partnerships.

Early Signs of Q2 Growth

Initial indicators for the second quarter show positive momentum. Average daily revenue up to April 8 was reported to be 9% higher compared to the same period in Q2 2025, with operating margins exceeding the average of the past eight quarters.

Betsson is set to release its full Q1 2026 interim report on April 24.

Long-Term Growth Outlook

Looking at the broader picture, Betsson’s 2025 financial performance showed steady growth, with total revenue reaching €1.197 billion, reflecting an 8% year-on-year increase, including 13% organic growth.

In Latin America, end-user revenue rose by 7.9% in Q4 2025 to €84.3 million, supported by strong results in markets such as Peru, Argentina and Colombia.