Betsson Shares Drop Nearly 20% as Q1 Profit Falls 47% on B2B Revenue Slide

Swedish online gambling giant Betsson AB saw its shares plunge as much as 20% on the Stockholm exchange on Wednesday after preliminary first-quarter results revealed a 47% collapse in operating profit, driven by a sharp downturn in its B2B licensing segment.

The company reported expected revenue of 285 million euros for the first three months of 2026, down 3% from €294 million in the same period last year. Operating income fell to €34 million from €64 million a year earlier, marking the steepest quarterly profit decline in the company’s recent history.

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Chief executive Pontus Lindwall said the customer’s activity levels had stabilized since December but acknowledged the segment continues to weigh on group performance. He added that several unprofitable business-to-consumer markets are costing the company between €10 million and €15 million per quarter in operating income.

Betsson’s shares closed at 90.10 Swedish kronor on April 9, down 14.4% from the previous close of 104.80 kronor, after briefly falling more than 20% during the session. The selloff followed a similar episode in January, when preliminary fourth-quarter results triggered a 21% single-day drop and prompted DNB Carnegie to slash its price target from 190 to 120 kronor.

The regional breakdown showed uneven performance across the group’s key markets. Revenue from Central and Eastern Europe and Central Asia, Betsson’s largest segment and the region most exposed to its B2B operations, fell 21% to €96 million. The Nordics declined 18% to €31 million. Western Europe grew 9% to €61 million, while Latin America posted the strongest gains at 24%, reaching €93 million.

Casino revenue dipped slightly while sportsbook revenue held flat on an improved margin of 8.4% compared to 8% a year earlier. The gross margin fell sharply to 57.6% from 64%, driven by the shift in revenue mix away from high-margin B2B licensing toward locally regulated markets carrying higher gaming taxes. Tax costs rose to €53 million from €45 million.

Betsson said average daily revenue in the early weeks of the second quarter is tracking 9% higher than the same period in 2025. The full first-quarter interim report is scheduled for April 24.