Swedish gambling operator Betsson AB has issued an early update on its Q1 2026 performance, warning of significant margin pressure driven by higher taxes and shifting regional performance across its markets.
The company expects first-quarter revenue of €285 million, down 3% year-on-year, while EBIT is forecast to drop 47% to €34 million compared with the same period last year.
Regional Performance Diverges
Betsson reported mixed results across its key regions. Revenue grew in Latin America (€93m vs €75m) and Western Europe (€61m vs €56m), but declines in CEECA (€96m vs €122m) and the Nordics (€31m vs €38m) dragged overall performance lower.
Casino revenue fell by €8 million to €204 million, while sportsbook turnover remained stable at €80 million. The company’s B2B segment saw the sharpest decline, dropping from €90 million to €51 million due to reduced activity from a major customer.
Tax Rises and Cost Pressure Impact Margins
Betsson attributed the weaker profitability to a combination of higher taxation in multiple European markets, a changing revenue mix, and ongoing investments in unprofitable B2C regions. The company estimates these expansion markets are currently reducing quarterly EBIT by €10–15 million.
Despite the downturn, CEO Pontus Lindwall maintained a positive outlook, noting that the affected B2B customer has shown signs of stabilisation since December and reaffirming long-term growth plans in both B2B and B2C segments.
Early Signs of Recovery in Q2
While Q1 results point to pressure on earnings, Betsson highlighted positive early Q2 momentum, including a 9% year-on-year rise in average daily revenue through 8 April and sportsbook margins above its long-term average.
The group will publish its full Q1 2026 report on 24 April and has not issued formal guidance for the remainder of the year.
