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Performance in Latin America demonstrated the importance of this region to Betsson Group in the first quarter of 2026. Specifically, Betsson reported a revenue of €93 million, which represents a 24% increase compared to €75 million reported in Q1 2025.
This result allowed Latin America to remain in second place in terms of the contribution to the total revenue behind only CEECA, which brought in €96 million, despite a year-on-year drop of 21%.
Overall Group Performance Shows Improvement Needed
For the first quarter of 2026, Betsson achieved total revenue of €285 million, down from €294 million in Q1 2025. Operating profit (EBIT) fell more sharply, amounting to €34 million, against €64 million in the corresponding quarter of 2025.
Casinos were the main source of revenue in Q1 2026 for the company, with €204 million earned versus €212 million in Q1 2025. Sports betting also delivered steady revenue of €80 million. Operating margins for sports betting increased from 8.0% to 8.4%.
At the same time, the B2B sector showed the most severe reduction in activity with the licensing revenue dropping from €90 million to €51 million, which corresponds to a 43% fall.
“We see that since December, there is an average stabilization in activity levels from that partner“, added Betsson.
Transition to Local Regulations Hits Profitability
Another important feature of Q1 2026 is the high share of revenue from local regulated markets reaching 73%. While being advantageous for the future, this transition negatively affected profitability.
“This change in the revenue mix, together with the lower share of the B2B business, impacted gross margin, which decreased from 64.0% to 57.6%, and consequently the operating result“, stated Betsson.
Additionally, gaming taxes grew significantly, reaching €53 million compared to €45 million in Q1 2025.
Investments Reduce Profitability
Pontus Lindwall pointed out that B2C remains a high-performing segment that positively impacts operating results. However, the costs of ongoing investments into B2C projects that do not generate profit in the current period weigh on the performance of the company.
Estimates show that the mentioned investments will reduce EBIT by €10–15 million in the next three months. Nonetheless, according to Lindwall, performance in those markets will be continuously tracked and evaluated.
“As far as the B2B business goes, we still observe that it is affected by low activity from one of its clients, however, we can see some signs of stabilization. Also, there is an opportunity for further growth in cooperation with existing and new partners“, he noted.
Positive Start to Q2 Signals Momentum
Initial reports indicate positive developments. The average daily revenue up to April 8 was 9% higher than in Q2 2025. At the same time, operating margins exceeded the average rolling result over the past eight quarters.
Betsson is scheduled to publish its interim report for Q1 2026 on April 24.
Long-Term Outlook Supported by Regional Expansion
According to the company’s 2025 financial results, the group demonstrated continued growth with the total revenue rising to €1.197 billion or by 8% annually, including 13% organic growth.
Moreover, in Latin America, end-user revenue grew 7.9% in Q4 2025 to reach €84.3 million, primarily due to successful performances in Peru, Argentina, and Colombia.
Source: SBC Noticias
