The company reported expected revenue of 285 million euros for the first three months of 2026, down 3% from €294 million in the same period last year. Operating income fell to €34 million from €64 million a year earlier, marking the steepest quarterly profit decline in the company’s recent history.
Key Takeaways:
- Betsson EBIT collapsed 47% to €34M as B2B license revenue fell 43% to €51M in Q1 2026
- Shares plunged over 20% intraday before closing down 14.4% at SEK 90.10
- Latin America grew 24% to €93M while CEECA fell 21% to €96M in regional split
B2B Segment Bears the Brunt as Mystery Customer Drags Results
The most striking figure in the release was the collapse of Betsson’s B2B licensing revenue, which fell 43% to €51 million from €90 million. The segment’s share of total group revenue dropped from 31% to 18% in a single quarter.
Betsson attributed the decline to lower revenue from a single unnamed B2B customer. Industry analysts have previously linked the underperforming partner to Realm Entertainment, which operates in Turkey’s unregulated gambling market under brands including Bets10 and Casino Metropol. The country’s ongoing crackdown on illegal gambling has weighed on Betsson’s results for consecutive quarters, with B2B revenue already declining 13% in the fourth quarter of 2025 before accelerating to the current 43% drop.
Chief executive Pontus Lindwall said the customer’s activity levels had stabilized since December but acknowledged the segment continues to weigh on group performance. He added that several unprofitable business-to-consumer markets are costing the company between €10 million and €15 million per quarter in operating income.
Betsson’s shares closed at 90.10 Swedish kronor on April 9, down 14.4% from the previous close of 104.80 kronor, after briefly falling more than 20% during the session. The selloff followed a similar episode in January, when preliminary fourth-quarter results triggered a 21% single-day drop and prompted DNB Carnegie to slash its price target from 190 to 120 kronor.
The regional breakdown showed uneven performance across the group’s key markets. Revenue from Central and Eastern Europe and Central Asia, Betsson’s largest segment and the region most exposed to its B2B operations, fell 21% to €96 million. The Nordics declined 18% to €31 million. Western Europe grew 9% to €61 million, while Latin America posted the strongest gains at 24%, reaching €93 million.
Casino revenue dipped slightly while sportsbook revenue held flat on an improved margin of 8.4% compared to 8% a year earlier. The gross margin fell sharply to 57.6% from 64%, driven by the shift in revenue mix away from high-margin B2B licensing toward locally regulated markets carrying higher gaming taxes. Tax costs rose to €53 million from €45 million.
Betsson noted that the share of revenue from locally regulated markets reached a record 73%, up from 59%, reflecting its strategic pivot away from grey-market exposure. The operator also holds one of the iGaming sector’s most prominent sponsorship positions as Inter Milan’s front-of-shirt sponsor under a four-year deal reportedly worth approximately €30 million per season, structured through its Betsson Sport infotainment brand to navigate Italy’s gambling advertising ban from the nation’s under-fire Dignity Decree.
Betsson said average daily revenue in the early weeks of the second quarter is tracking 9% higher than the same period in 2025. The full first-quarter interim report is scheduled for April 24.
