Betsson Sets New Records for Revenue in Q2 2026, While Profitability Remains Unconvincing

Key Points

• The Betsson company recorded its best quarterly turnover ever at €310.2m in Q2 2026, but the operating profit decreased by 38.9% from that of the previous year to €42.2m due to a fall in the EBIT margin to 13.6% from 22.7%.
• The Latin America region turned out to be the biggest market for the Betsson company for the first time ever due to the increase in turnover from 32.3% to €112.1m.
• Revenue from B2B licensing went down from €75.6m to €49.1m owing to low activity from one big undisclosed client, further adding on.

Revenue at an All-Time High, But the Numbers Underneath Tell a Different Story

Betsson Group had its best-ever quarter on the top line. Revenue for the three months ending 30 June climbed 2.1% to €310.2m, beating analyst consensus of around €299m. On an organic basis, stripping out currency and acquisition effects, growth came to 6.1%. CEO Pontus Lindwall called it “the highest revenue level ever for Betsson in a single quarter.”

What followed those words was harder to spin. Gross profit was down by 8.5% at €177.5 million, while the gross margin declined to 57.2% from 63.9%. EBITDA fell by 30.5% to €58.5 million from €84.1 million in the equivalent period. Operating income reduced by 38.9% to €42.2 million compared to €69 million. Net income for the period stood at €30.4 million, reducing by 38.2% from €49.2 million.

During the first six months of 2026, group revenues were virtually stagnant, at €595.5 million, but EBITDA decreased by 33% to €108.4 million while net income reduced by 43% to €55.9 million. Revenue for the quarter exceeded analyst estimates of €299 million and contributed to a rise in share price on the Stockholm exchange by 2%.

The B2B Problem Is Not New, and It Isn’t Small

However, what affected Betsson’s profits the most was not tax or expenses; it was B2B. License revenues from the unit fell from €75.6 million to €49.1 million, accounting for only 16% of total revenue compared to 25% previously. Lindwall pointed out that the drop is “because of decreased revenues from one of our major partners.”

That unnamed customer has been an open wound since at least Q4 2025. Industry analysis has previously linked the underperforming relationship to Realm Entertainment, which operates in Turkey under brands including Bets10, a market where Turkish authorities have been running an active crackdown on unlicensed gambling. B2B revenue had already slid 13% in Q4 2025 before accelerating further in Q1 2026 and again in Q2. EFN analysts, writing in January 2026, were blunt about the trajectory: “Betsson has gone from being a fast-growing operator where Turkish risks were waved away, to now posting weak growth while the risks in Turkey are materialising in the numbers.”

Lindwall said activity had “stabilised” since December, but at a materially lower baseline than the comparison period. “Our strategy is based on a balanced mix of B2C and B2B initiatives, and we are working hard to return to growth in B2B with both existing and new customers.”

Latin America Crowned Betsson’s Largest Region

The story that genuinely excited management was Latin America. Revenues rose by 32.3% to an all-time high of €112.1m, raising the proportion of regional revenues in total group revenues to 36%, surpassing the share held by CEECA regionally for the first time. Revenues for Argentina, Peru and Colombia recorded their highest quarters ever.

According to Lindwall, the following regions were identified as having led the growth spurt: “The clear standouts in the region were Peru and Argentina due to past product investments, strong brands and targeted marketing efforts around the World Cup.”

The World Cup, which began in June, provided an additional boost for the business. Betsson used its sportsbook to manage a five-fold increase in usual traffic and also added new product options like Goal Rush, where the score-based multipliers apply to bets placed, and Super Sub, where one bet could be transferred to another player in case the player selected for the bet got substituted. Lindwall stated he was “very satisfied with the performance of the sportsbook technically.”

Betsson also secured a local sportsbook licence in Argentina’s Santa Fe province during the quarter, with a commercial launch planned for Q4 2026. The province becomes another foothold in a country already delivering record results.

Regulated Markets Are Growing Fast, and So Are the Taxes

Betsson’s regulatory profile shifted meaningfully during the quarter. The regulated markets contributed 75.5% to the overall income of the company, which was higher than 65.7% recorded in the previous financial year. This is a good sign for the future, although there is a price to pay now.

The company’s cost of services rose from €109.8m to €132.7m as higher gaming taxes and payment-provider fees followed the expanding regulated footprint. Lindwall flagged this directly: “The higher share of locally regulated revenue, and the higher gaming taxes that follow, is once again a key explanation for the lower profitability compared with the same period last year.”

CEECA declined 14.9% to €100.6m, primarily because of the B2B revenue drop, while the Nordic region fell 17.1% to €28.1m, hit by reduced casino activity in Sweden and Denmark. Western Europe was the exception, with revenue rising 8.3% to an all-time high of €64.2m, driven by Italy, where Betsson’s Inter Milan front-of-shirt sponsorship continues to support brand reach despite the country’s gambling advertising restrictions.

Casino Holds Its Ground as the Core Product

The casino vertical continued to be Betsson’s key offering, contributing €217.6m or 70% of group revenue, up 2.5% on-year. The gross turnover decreased by 8.7% to €8.26bn; however, revenue remained at the same level. The company introduced 376 casino games in the quarter, 32 of which were unique to the Betsson brand for a short period.

Growth of sportsbook revenue was a little bit better, increasing by 1.4% to €91.3m. The gross turnover from sportsbook decreased by 12% to €1.29bn; however, margin after free bets rose to 10.5% from 9.5%, beating the eight-quarter rolling average margin of 8.9%.

Active B2C customers increased 31.9% to 1.83m, a very good number despite the fact that revenue growth was much lower. Deposits from customers decreased by 7.1% to €1.38bn. Cash flow from operations improved to €60.4m from €41.1m in the corresponding quarter last year, and Betsson ended up with a net cash position of €128.4m. The shareholders received confirmation of an ordinary dividend of €0.66 per share in two payments.

Early Q3 Data Points to World Cup Carrying Its Momentum

As the World Cup final featuring Argentina against Spain is to be held on 19 July, Betsson began its Q3 on a high note, riding on an updraft. Revenue per day during 1 to 13 July was 13.7% higher than the average for Q3 2025. In currency-neutral terms, this rises to 19.9%.

“The FIFA World Cup has provided a solid start to the third quarter,” Lindwall said. “With a competitive product offering and strong market positions, we are well placed to continue creating long-term value for our shareholders.”

Betsson did not issue a full-year forecast, consistent with recent practice. The company also announced a new €75m multi-currency revolving credit facility with a Nordic bank, available for working capital, general corporate purposes and future acquisitions. Lindwall signalled that Latin America remains the more attractive long-term growth pool compared to Western Europe.

On prediction markets, a topic gaining traction in the sector, Lindwall said Betsson was following developments “with great interest” but saw limited application outside the US. “In our markets, if it was to be allowed, it would fall under the gaming regulations,” he said, “and then there would not be much of a difference from normal sports betting.”

Expert Analysis

The Q2 results confirm a tension building inside Betsson across several consecutive quarters. The B2C machine is performing genuinely well; Latin America is delivering real growth, the World Cup provided a proper operational test that the technology passed, and active customer numbers are accelerating. None of that is cosmetic.

The problem sits entirely in B2B, and the market cannot decide whether the worst is priced in. Betsson’s share price climbed 2% in early trading after the Q2 release, following a period of severe volatility; Q4 2025 preliminary results prompted a single-day drop of around 21%, and Q1 2026 produced a further 14.4% close-day fall after operating income collapsed 47%.

What investors now need to see is the B2B line stabilising at a floor rather than drifting further. Lindwall has said activity has stabilised, but stabilisation at €49.1m per quarter is a structurally different business from the one running at €75.6m twelve months ago. Until a new B2B partner or a genuine recovery from the existing customer changes that number, the margin compression narrative flagged by analysts will remain the loudest story, regardless of how many top-line records Betsson continues to set.