Key Moments:
- Betsson (STO: BETS-B) posted record Q3 2026 revenue of €326.5 million, up 10% year-on-year
- EBITDA declined 23% to €63.4 million, while growing gaming taxes pushed gross margin down to 56%
- Latin America revenue climbed 52% in the quarter, now making up 36% of total group revenue
Top-Line Growth Offset by Margin Pressure
Betsson (STO: BETS-B) reported an all-time high in quarterly revenue, delivering €326.5 million ($381 million) for Q3 2026, driven by a 10% rise compared to the previous year. Organic growth was reported at 8% for the quarter. Despite these results, rising gaming taxes and reduced B2B activity caused profitability metrics to decline sharply.
The company’s EBITDA dropped by 23% to €63.4 million ($68.5 million), with operating income slipping 31% to €46.1 million ($49.8 million).
Casino Drives Performance, Sportsbook Lags
Betsson’s casino segment delivered a standout quarter, with revenue growing 14% to set a new record, while sportsbook revenue rose just 1% as margins came under pressure. The total number of active customers jumped by 40% year-on-year to 1.9 million, partially bolstered by the lingering effects of major summer international football tournaments. Rhino Entertainment Group, acquired by Betsson in August, also positively impacted quarterly revenues.
B2B Setback and Mounting Gaming Taxes
During an earnings call, CFO Martin Öhman confirmed that B2B revenue fell 39% year-on-year, representing a decline of about €30 million ($32.4 million). This was mainly attributed to lower activity from one large, unnamed B2B client. In contrast, B2C revenue increased 28%. However, this move towards more direct consumer business resulted in additional gross profit margin pressure.
Öhman explained to analysts, “We have seen for quite some time now that we are growing our locally regulated revenue, which come with increased gaming taxes,” and reinforced the operational shift, “We have also seen a shift towards more B2C revenues rather than B2B revenues. So there’s a mix effect in there.”
Direct gaming taxes grew by approximately €28 million ($30.2 million), pulling the company’s gross profit margin down from 64% to 56%. CEO Pontus Lindwall commented on the broader implications, stating, “We know that these revenues come with a different cost structure, and we pay a lot of tax. We have an all-time high in gaming taxes this quarter, amongst many other all-time highs.” Lindwall maintained a positive long-term outlook regarding B2B segment growth and its potential impact on gross margin, saying, “But we believe that we will be able to grow the B2B business as well going forward, which should have a positive impact on the gross margin.”
| Financial Metric | Q3 2026 | YoY Change |
|---|---|---|
| Revenue | €326.5 million | +10% |
| EBITDA | €63.4 million | -23% |
| Operating Income | €46.1 million | -31% |
| Active Customers | 1.9 million | +40% |
| Gross Profit Margin | 56% | -8 percentage points |
| Direct Gaming Taxes | €28 million increase | N/A |
| B2B Revenue | -39% | €30 million decrease |
Brazil Approach Minimizes Market Risks
Discussing developments in Brazil, Lindwall explained that Betsson’s conservative market entry shielded it from major operational setbacks following the recent gambling ban in that country. He said, “Of course, we have invested small amounts of money to be in the market, but compared to some other operators, it is not even comparable what we have done,” and reinforced the decision by stating, “Looking in the rear mirror, this is not something that we regret – that we have been careful in the market. It is actually the other way around.” Lindwall also suggested that the regulatory outlook for Brazil may improve: “Our belief is that the market will not be closed forever as it is as of now… We think that the market will open up in one way or the other.”
Latin America Performance Accelerates
Elsewhere in Latin America, Betsson’s operations continued to outperform. Revenues in the region surged 52% quarter-on-quarter, marking new all-time highs and driven by strong results in Argentina, Peru, and Colombia. Latin America now contributes 36% of the company’s total revenue base.
Outlook for the Next Quarter
Looking to Q4, Lindwall observed that average daily revenue for the first weeks of October has risen 11% year-on-year, indicating continued momentum heading into the final months of the year.
- Author
Daniel Williams
