FY 2025: Product Investment and Gaming Taxes Impact Betsson’s Profit Margins

Betsson has closed out 2025 with reduced profitability, though boasting higher revenue. This is due to rising gaming taxes and increased investment in product and technology. The Swedish operator reported full-year revenue of €1.2bn, representing an 8% increase year-on-year and a 13% organic boost.

EBITDA declined by 1% to €313.7m, pushing the EBITDA margin down to 26.2% from 28.6% in 2024. Operating income also slipped 1% to €253.1m, while the EBIT margin fell from 23.2% to 21.1%.

Tough fourth quarter compounds pressure

The year’s final quarter was particularly challenging. Revenue went down 1% to €303.9m, while operating income dropped sharply by 24% to €53.2m. Betsson pointed to a combination of lower B2B revenue, higher gaming taxes and sustained investment across its product and technology organisation as drivers of its weaker quarterly performance.

Commenting on the results, Betsson chief executive Pontus Lindwall said: “Lower B2B revenue, higher gaming taxes and continued investments in product and technology had a negative impact on profitability in the quarter.”

Regulated market mix drives higher tax burden

An increased reliance on locally regulated markets also played a huge role in 2025. In the fourth quarter, 68% of group revenue came from regulated markets, up from 60% in the same period last year. This shift pushed up gaming tax payments.

Lindwall confidently commented on Betsson’s operational position and future plans. “Despite the lower profitability, Betsson stands strong operationally with a competitive product offering, increasing brand awareness and technology at the forefront,” he said.

“Looking ahead, we are entering 2026 with a number of activities that provide good conditions for growth. We are also looking forward with great anticipation to the FIFA World Cup, where a record number of matches and participating nations will create exciting opportunities for betting and for attracting new customers.”

Furthermore, he added that: “The investments made in recent years as well as our pipeline of projects for 2026 support our ambition to continue to generate long-term shareholder value.”

Betsson’s Plans for 2026 and shareholder returns

Betsson ended the year with 1.4 million active customers, up from 1.3 million previously. Casino revenue rose 3% in the fourth quarter, while sportsbook revenue fell 9%, with margins easing to 8.8% from 9.8% a year earlier.

The board has also proposed an ordinary dividend of €0.66 per share for 2025 and launched a €40m share buyback programme during the quarter.

The market responded negatively, with Betsson shares falling 4.7% in early trading to SEK100.70. The stock is now down more than 26% over the past month and over 37% across the last six months.