Betsson posts record Q3 revenue of €326.5m as EBITDA falls 23%

Betsson AB reported record third-quarter revenue of €326.5m, up 10% year on year, while EBITDA fell 23% to €63.4m, according to figures. The EBITDA margin narrowed from 27.9% to 19.4%.

Operating income declined 31% to €46.1m and gross profit dropped 5% to €181.1m. Betting duties rose from €41.4m to €69.4m, and operating expenses increased from €122.9m to €135m.

Markets under local regulation made up 77.7% of revenue, versus 63.8% in the prior-year period. CFO Martin Öhman told the earnings call that B2B revenue dropped 39%, roughly €30m, mainly on lower activity from a major client the company did not name. B2C revenue grew 28%, and the gross profit margin narrowed from 64% to 56% as direct gaming taxes climbed.

Öhman told analysts: “We have seen for quite some time now that we are growing our locally regulated revenue, which comes with increased gaming taxes.” In a further remark, he noted a move toward a larger B2C share relative to B2B, which he called a mixed effect.

Revenue for the nine months came to €922.1m, a 3.2% increase. Casino brought in €253.5m, up 13.7% and equal to 77% of group revenue. Sportsbook revenue was €71.8m, a gain of 0.8% and 22% of the total, while margins after promotional credits slipped from 8.8% to 8.1%.

The customer base climbed 40% to an all-time high of 1.87 million, a figure the company linked to the 2026 FIFA World Cup and the opening stages of major domestic football campaigns.

Growth was strongest in Latin America, where revenue climbed 51.8% to €116.1m, or 36% of group revenue, on the strength of Argentina, Peru and Colombia; Betsson said it held leading market positions in those countries and Chile. Western Europe brought in €64.8m, up 13.8%, helped by Italian casino operations. Central and Eastern Europe and Central Asia saw revenue fall 16.8% to €99.2m, and the Nordics dropped 10% to €32.7m. Rest of the World revenue more than doubled, rising 106% to €13.7m, aided by entry into Alberta and Ontario after the August purchase of Rhino Entertainment for €64.5m.

Betsson also gave betFIRST in Belgium a new brand identity and arranged a €75m revolving credit facility during July. Asked about Brazil's recent gambling ban, CEO Pontus Lindwall said the company's modest marketing spend had left it less exposed than rivals, and he anticipated further regulatory changes.

For the period through 18 October, average daily revenue came in 11% higher than the fourth-quarter 2025 average, Betsson said, though sportsbook margins stayed under their eight-quarter average. The stock moved from SEK93.75 at the prior close to SEK96 by 10:25 a.m. GMT.