Betsson Q2 Revenue Tops Consensus but Profit Slumps as Regulated Market Taxes and B2B Decline Bite

Betsson reported record second-quarter revenue of €310.2 million ($361.9 million) for 2026, a 2.1% increase year-over-year that comfortably exceeded the Bloomberg consensus estimate of €299 million. Organic sales growth came in at 6.1%, down sharply from 16% a year earlier. However, profitability declined markedly: EBITDA fell 30.4% to €58.5 million (above the €56 million consensus), operating profit dropped 38.8% to €42.2 million, and net profit slid 38.2% to €30.4 million, with earnings per share at €0.22 compared with €0.36 in Q2 2025.

Regional Performance and Market Mix

Latin America overtook Central and Eastern Europe and Central Asia (CEECA) to become Betsson's largest region, contributing a record €112.1 million (36% of group revenue). Revenue from the region rose 32.3%, driven by strong performances in Argentina, Peru, and Colombia, which each posted record quarterly results. CEO Pontus Lindwall noted that "the increase was broad-based and received an additional boost from the FIFA World Cup, which contributed to high activity among both new and existing customers." Western Europe also hit a record €64.2 million, led by Italy. By contrast, Nordic revenue declined 17.1% as Betsson scaled back marketing spend in Sweden and Denmark amid fierce competition.

Profit Pressure Drivers

The operator attributed weaker profitability to its growing reliance on regulated markets, which accounted for 75.5% of group revenue—up from 65.7% a year earlier. "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," Lindwall said. B2B licence revenue also tumbled to €49.1 million from €75.6 million, mainly due to reduced activity from one major customer, further weighing on the bottom line.

Sportsbook Upgrades and World Cup Impact

Casino remained Betsson's largest vertical with €217.6 million (70% of revenue), while sportsbook revenue was essentially flat at €91.3 million. The company upgraded its sportsbook platform ahead of the World Cup, expanding capacity to handle up to five times normal traffic and introducing features like Goal Rush (multipliers based on goals scored) and Super Sub (bet transfers to a substitute if the original player is replaced). Lindwall said he was "very satisfied with the performance of the sportsbook from a technical angle" and highlighted user experience enhancements that made it easier for customers to find betting options.

Outlook and Strategic Moves

Average daily revenue between July 1 and July 13 was 13.7% higher than the average for Q3 2025, supported by continued World Cup betting. Lindwall noted that the tournament "has provided a solid start to the third quarter." Betsson also secured a sportsbook licence in Argentina's Santa Fe province during the quarter, with a launch planned for Q4. The company announced a new €75 million credit facility to fund future acquisitions, while Lindwall reiterated that the firm sees greater long-term growth opportunities in Latin America than in Western Europe.