Betsson Committed to Growth Strategy Despite Q1 Profit Drop

Profit Falls as Costs Rise and Mix Shifts

Revenue reached €285.3m for the first quarter — slightly below last year. The decline was modest, but the bottom line told a harsher story. Operating profit fell to €34.0m — nearly half the previous figure. Net profit dropped 47.3% to €25.5m — raising questions about margins.

Several factors appear to have driven this sharp decline. A weaker B2B segment reduced high-margin revenue during the quarter. At the same time, regulated markets brought higher tax costs — about €8m. 

Costs also increased as the company expanded across licensed markets. Payment fees and licence expenses rose — adding strain to results. Gross profit fell 12.5% as service costs climbed during the period. 

Strategy Holds Despite Pressure

Despite weaker results, leadership remains firm on long-term plans. CEO Pontus Lindwall signaled no quick fixes to address short-term pressure. He noted that building profitable markets often takes many years. These investments — while costly now — could support future growth.

The company appears committed to markets where regulation is tightening. This approach may bring trust and stability over time. However, it also means higher taxes and slower margin expansion today. A careful balance.

Regional Trends Show Mixed Picture

Performance varied across regions — with both gains and declines reported. Latin America delivered strong growth, with revenue rising 24.7%. Peru and Colombia were key drivers behind this increase. Western Europe also improved — helped by gains in France and Italy.

Nevertheless, Central and Eastern Europe showed a notable decline. Revenue fell 21.8% — largely due to weaker B2B activity. Still, several local markets reported steady growth in B2C operations. In the Nordics, revenue dropped 6.9% during the quarter. Lower casino activity in Sweden and Denmark weighed on performance.

Product Performance and Outlook

Casino revenue declined 4.0% — remaining the group’s main segment. Sports betting showed slight growth — rising 0.6% year-on-year. Other products added a small €1.4m contribution to total revenue.

Looking ahead, early Q2 figures suggest some improvement. Average daily revenue is higher than the same period last year. Sportsbook margins also appear stronger — based on recent performance. Key takeaways from the quarter include:

• Profit pressure from taxes and cost increases

• Shift toward regulated markets affecting margins

• Regional growth offset by declines in core areas

Hence, Betsson’s path remains steady despite short-term setbacks. The company appears willing to absorb pressure — betting on future returns.