Betsson Posts Record Q3 Revenue as Operating Income Falls 31%

Betsson AB published its interim report for January–September 2026 on October 22, 2026, reporting group revenue of EUR 326.5 million for the third quarter, an increase of 10% year on year, while operating income (EBIT) fell 31% to EUR 46.1 million.

The company described the quarterly revenue as a new all-time high for a single quarter, with organic growth of 8%. EBITDA was EUR 63.4 million, down 23% from EUR 82.5 million a year earlier, giving an EBITDA margin of 19.4% against 27.9%. The EBIT margin was 14.1%, down from 22.6%, and on an organic basis EBIT decreased 33.0% to EUR 44.8 million. Net income was EUR 28.2 million, down from EUR 50.1 million, corresponding to EUR 0.19 per share against EUR 0.34. Operating cash flow was EUR 54.5 million (64.8), and net debt stood at EUR -98.3 million, compared with EUR -220.0 million a year earlier.

In his report comment, President and CEO Pontus Lindwall said customer activity remained high during the quarter, supported by the FIFA World Cup and the start of the major European football leagues, and that growth was driven by the casino product while the sportsbook margin was considerably lower than in the second quarter. Lindwall said EBIT increased compared with the previous quarter and that the operating margin improved slightly despite the lower sportsbook margin.

Looking to the remainder of the year, Lindwall wrote: “With a scalable business model, attractive products and strong market positions, we are well positioned to return to earnings growth and continue creating long-term value for our shareholders.”

Product and Regional Development

Active B2C customers rose 40.1% to 1,874,687, from 1,338,494 a year earlier, a level the company described as a new record in the full interim report. Customer deposits across all gaming solutions were EUR 1,545.4 million, up 6.4% from EUR 1,452.3 million.

Casino revenue was EUR 253.5 million, up 13.7% from EUR 223.0 million, and represented 77% of group revenue against 75% a year earlier. Casino gross turnover was EUR 9,481.5 million, up 7.0%, and the offering expanded with 478 new casino games, 40 of which carried a period of exclusivity. Sportsbook revenue was EUR 71.8 million, up 0.8% from EUR 71.2 million, on gross turnover of EUR 1,365.6 million (1,263.2). The sportsbook margin after free bets was 8.1%, down from 8.8% and below the eight-quarter rolling average of 9.0%. Revenue from other products was EUR 1.3 million (1.5), or 1% of total revenue.

New sportsbook features during the quarter included betting opportunities during extra time in football matches and team and player pages for the biggest matches in Europe. Betsson also launched Gates of Inter, a casino game built around its Inter Milan sponsorship and the third sponsorship-based title developed exclusively for the group, after earlier games featuring Boca Juniors and Atletico Nacional.

Latin America revenue was EUR 116.1 million, up 51.8% from EUR 76.5 million, which the report described as an all-time high with new record levels across casino revenue, deposits and casino turnover. Argentina, Peru and Colombia reported strong growth across both the casino and sportsbook products, and the region accounted for 36% of group revenue.

Western Europe revenue was EUR 64.8 million, up 13.8% from EUR 56.9 million and also an all-time high. Italy reported record revenue with new highs in both turnover and deposits, while Belgium revenue decreased both year on year and quarter on quarter. At the end of the quarter, Betsson completed the rebranding of its Belgian operation from betFIRST to the flagship Betsson brand; Betsson Group acquired betFIRST in June 2023.

Nordics revenue fell 10.0% to EUR 32.7 million (36.4), with both Sweden and Denmark lower across the sportsbook and casino products. Revenue in Central and Eastern Europe and Central Asia fell 16.8% to EUR 99.2 million (119.3), which the report attributed to lower license revenue for system delivery to B2B customers, while B2C markets including Croatia, Georgia, Lithuania, Latvia and Estonia reported increased revenue. Rest of world revenue rose 106.0% to EUR 13.7 million (6.6), driven by the Rhino Entertainment acquisition, which was consolidated from August, with Canada the main contributor.

Costs and Nine-Month Results

Cost of services provided rose to EUR 145.4 million from EUR 106.0 million, mainly due to higher gaming taxes and higher costs for payment providers. Gross profit was EUR 181.1 million (189.8), a gross margin of 55.5% against 64.2%. Marketing expenses were EUR 41.6 million (34.4), driven by increased market activities in Latin America, and personnel expenses were EUR 49.8 million (48.5) with an average of 2,913 full-time employees during the quarter, up from 2,801.

Revenue from locally regulated markets increased 35% to EUR 253.8 million (188.6), corresponding to 77.7% of group revenue against 63.8% a year earlier. License revenue for system delivery to B2B customers fell to EUR 46.7 million from EUR 76.9 million, mainly on lower revenue for one B2B customer.

For the first nine months of 2026, group revenue was EUR 922.1 million, up 3% from EUR 893.1 million, with organic growth of 6%. EBIT for the period was EUR 122.3 million, down 39% from EUR 199.9 million, and net income was EUR 84.1 million (147.5), corresponding to EUR 0.59 per share (1.04). The annual general meeting approved a dividend to shareholders of EUR 0.66 per share, down from EUR 0.76, with the prior year’s figure including a special dividend of EUR 0.10 per share.

Rhino Acquisition, Trading Update and Regulatory Developments

The acquisition of Rhino Entertainment Group was announced on March 12, 2026, and completed in early August 2026, with completion announced on August 3, 2026. The preliminary purchase price was EUR 73.1 million on a cash and debt-free basis, payable in cash. The acquisition covers Rhino entities holding B2C assets, licenses and personnel in Ontario and the rest of Canada, as well as proprietary middleware and front-end technology intended for Betsson’s B2B offering. Lindwall said Rhino made a positive contribution to revenue and earnings during the quarter.

In July 2026, Betsson signed a EUR 75 million multi-currency revolving credit facility with a Nordic bank, with a two-year term and an option to extend for an additional year. The facility was undrawn at the end of the quarter, and external financing otherwise consisted of bonds totalling EUR 173.8 million.

Average daily revenue in the fourth quarter up to and including October 18, 2026 was 11.0% higher than the average for the full fourth quarter of 2025, and 9.4% higher adjusted for currency effects and acquisitions. The report stated that the sportsbook margin has been significantly lower than the average of the last eight quarters during the start of the fourth quarter, and that the trading update is not a revenue forecast.

In the report’s regulatory section, Betsson stated that on September 25, 2026, Brazilian President Luiz Inácio Lula da Silva issued an immediate ban on online gambling, including online casino and sports betting, subject to congressional approval within 120 days to remain in force. The group’s local subsidiary suspended new customer registrations and deposits and ceased all advertising, marketing and sponsorship activities. Existing authorisations are scheduled to expire on October 25, 2026 unless the measure is suspended or modified, and the report stated that significant uncertainty remains regarding the long-term viability of Brazil’s recently launched regulated online gambling market.

The report also stated that subsidiary Zecure Gaming Ltd resolved to exit the German market, and that the regulator GGL confirmed in August 2026 that the license had expired on July 3, 2026. The company reported no significant events after the end of the quarter.

Öhrlings PricewaterhouseCoopers AB conducted a limited review of the interim report and concluded that nothing had come to its attention causing it to believe the report was not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act. Lindwall and CFO Martin Öhman were scheduled to present the report via webcast at 09:00 CEST on October 22, 2026. Betsson’s next report, covering the fourth quarter of 2026, is scheduled for publication on February 4, 2027.