Betsson Q3 revenue reached €326.5 million, up 10%, as Latin America grew 52%. EBIT fell 31% to €46.1 million, and net income dropped to €28.2 million.
Betsson Q3 revenue grew 10% to €326.5 million, with EBIT falling 31% to €46.1 million and a margin down to 14.1% from 22.6%. EBITDA fell 23% to €63.4 million, net income dropped to €28.2 million, and active customers rose 40% to nearly 1.9 million.
- EBIT Falls 31% as Revenue Climbs
- Latin America Leads Record Growth
- Casino Revenue Hits All-Time High
- B2B Weakness and Rising Tax Pressure
Betsson Q3 revenue reached €326.5 million, up 10% from €295.8 million. That is a record quarter, but EBIT fell 31% to €46.1 million. Gross margin compressed to 56% from 64%, and EBITDA slipped 23% to €63.4 million.
The swing is not a demand problem. Active customers rose 40% to nearly 1.9 million, casino revenue climbed 14% to an all-time high, and gaming tax income reached a record after growing around €28 million. The margin compression comes from where the growth is happening. Pontus Lindwall, chief executive of the Stockholm-listed operator, told iGB that a Latin America-heavy portfolio now sits on a different cost and tax structure than the European regulated markets it replaced.
Betsson Q3 Profit Falls as Volume Keeps Rising
Net income fell to €28.2 million from €50.1 million. Earnings per share dropped to €0.19 from €0.34. Operating cash flow slipped to €54.5 million from €64.8 million. The headline numbers read as a profit miss, but the sequential trend tells a different story.
EBIT rose 9% on Q2, its second consecutive quarterly increase. Lindwall said the sequential move is the number that matters to investors. “Maybe the most important thing for an investor is that we increased EBIT sequentially,” he said. “So it’s important that we are now growing EBIT again.”
The margin has still improved from Q2’s 13.6%, so the trend is not a one-quarter blip. He was not willing to promise a return to year-on-year profit growth. “It’s hard to tell when we will see profit growth compared with the same quarter last year,” he said. “I don’t know that yet, but we are certainly moving in the right direction.”
Latin America Leads Record Growth
Latin America became the largest region at 36% of revenue and grew 52% to a record. Active customers rose 40% to nearly 1.9 million. Lindwall said the World Cup lifted volumes and active users, with the second effect being the more valuable one: “We hope we can manage to keep some, or most, of those customers going forward.”
Western Europe grew 14% to its best quarter yet, led by Italy. Rest of World more than doubled on Rhino’s Canadian business, but Central & Eastern Europe and Central Asia fell 17% on lower B2B licence income, and the Nordics declined 10%. The regional mix is shifting toward markets that pay more tax and cost more to serve.
Casino Revenue Hits All-Time High as Sportsbook Stays Flat
Casino revenue rose 14% to an all-time high and made up 77% of revenue. Sportsbook revenue grew just 1% to €72 million, with the margin slipping to 8.1% from 8.8%. The sportsbook is not losing money, but the margin sits below its eight-quarter average, and it is no longer the growth engine of the business.
The casino mix also matters for regional exposure. Latin America at 36% of revenue is the single largest segment, ahead of the European regulated markets. Lindwall said the shift brings a different cost structure and, most importantly, a different tax structure. “We are now growing a lot in Latin America,” he said. “Those come with a different cost structure and, most importantly, a different tax structure.”
B2B Weakness and the Rising Tax Problem
B2B revenue fell 39%, or €30 million, on lower income from one customer, while B2C grew 28%. B2B now accounts for just 14% of revenue. The decline at the largest customer has stabilised, and Lindwall said the technology assets acquired with Rhino will fuel B2B growth going forward.
Regulation is the other pressure. Some proposed Latin American taxes “prove that regulators don’t really understand the business,” Lindwall said, because they “would make it impossible to run.” He added that “any kind of tax on turnover doesn’t really work for this industry.” The company kept its Brazilian footprint small, so it largely avoided the country’s near-ban on online gaming. He called the ban “a shocking decision” and said no country has managed to shut down internet gaming.
Stronger B2B growth is his one wish for the quarter. His balance sheet has changed hands as part of the Rhino Entertainment Group acquisition. Net cash stood at €98.3 million at the end of September, down from €220.0 million a year earlier after around €59 million was spent on Rhino.
The CEO is not ruling out bigger deals. “We could do a sizeable deal,” he said. “And given the structure of our balance sheet, we wouldn’t be afraid to take on some more debt to do a bigger acquisition.”
Q4 Starts Strong Before the Sportsbook Drag
Average daily revenue for Q4 up to 18 October was 11% above the Q4 2025 daily average, even with the sportsbook margin well below its eight-quarter average. Nine-month revenue stood at €922.1 million, up 3%, while EBIT fell 39% to €122.3 million.
AGBrief has been covering Nordic gaming operators through their regulatory and earnings cycles.
The Prediction Market Pitch
Prediction markets are ruled out in most of Betsson’s markets, and Lindwall is not satisfied by that outcome. Asked whether he would press for a regulated framework in Europe, he said yes. “In certain high-tax jurisdictions, we would then have another product with the same offering but lower tax,” he said. “So that would be interesting.”
iGaming Business has covered the European iGaming sector extensively.
Frequently Asked Questions
How did Betsson perform in Q3?
Betsson Q3 revenue grew 10% to €326.5 million, with EBIT falling 31% to €46.1 million. EBITDA dropped 23% to €63.4 million, net income fell to €28.2 million, and active customers rose 40% to nearly 1.9 million.
Why did EBIT fall while revenue rose?
Gross margin slipped to 56% from 64% as Latin America, which now makes up 36% of revenue, added 52% of growth. The markets pay higher gaming taxes and cost more to serve, which compressed profit despite record volume and record customer acquisition.
Is the EBIT decline a trend?
No. EBIT rose 9% sequentially on Q2, its second consecutive quarterly gain, and the margin improved from 13.6% to 14.1%. Betsson’s chief executive said the trend is moving in the right direction, but he could not date a return to year-on-year growth.
Which regions grew in Q3?
Latin America grew 52% to 36% of revenue, Western Europe grew 14% led by Italy, and Rest of World more than doubled on Rhino’s Canadian business. Nordics fell 10%, while Central & Eastern Europe and Central Asia declined 17% on weaker B2B licence income.
How does Rhino Entertainment affect the results?
Rhino was consolidated from August, adding Canadian B2C volume and technology assets for B2B. Around €59 million was spent on the acquisition, taking net cash from €220.0 million to €98.3 million at the end of September. The company is ready to take on more debt for a larger deal.
Will prediction markets be regulated?
Not in every market. Betsson’s chief executive said he would press for a regulated framework in Europe, with lower tax than high-tax jurisdictions. He is willing to build a dedicated product if regulators make room for it.
Is the Q4 outlook positive?
Average daily revenue through 18 October was 11% above the Q4 2025 daily average. Nine-month revenue reached €922.1 million, up 3%, with EBIT down 39% to €122.3 million. The sportsbook margin remains below its eight-quarter average, however.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
