Betsson CEO Pontus Lindwall highlighted the company's successful long-term approach in Italy, which has resulted in a 10.3% increase in its Q1 revenue for Western Europe.
On Friday, Betsson released its Q1 earnings report, showing significant growth in Western Europe primarily fueled by record-high revenue from Italy, alongside unprecedented turnover and deposit levels.
In a discussion following the results, Lindwall stated that Italy exemplifies how Betsson's enduring strategy can foster profitability in a competitive market. "In general it takes quite a long time to build a profitable B2C market," he noted. "You have to invest in brand awareness, building customer base, building your team. You start almost from zero. And it takes many, many years to get something like that profitable."
He elaborated on Italy's journey, revealing that it took nearly a decade of operational losses before the company saw profitability: "We took costs and negative profits in that market for some 10 years before we became profitable. And that’s what it takes to build your position in a big B2C market."
Projections from H2 Gambling Capital indicate that Italy's online betting and gaming market could approach €7 billion in total gross gaming revenue (GGR) by 2026, with expectations to surpass €9.3 billion by 2030, positioning Betsson well to benefit from this anticipated expansion.
Despite a robust rebound in March, Italy's betting revenue in Q1 2026 fell by 7%. While virtual betting surged by 16%, the horse racing sector continued its downward trend.
In terms of overall performance, Betsson reported total group revenue of €285.3 million in Q1, marking a 3% decline year-on-year, attributed in part to the company’s B2B operations. Impressively, revenue from regulated markets accounted for 73% of the total, up 20% from the previous year, achieving a record high for Betsson. Lindwall emphasized the company’s commitment to focusing on regulated markets as a strategic priority:
"It’s in our long-term strategy. We believe that the market overall will go from point of supply regulation to local regulation over time, and that goes for most of the markets. So if you want to have a strong position in the market in the long-term future, you need to be big in the regulated markets. That’s the strategy."
Betsson is also advancing with its acquisition of Rhino Entertainment Group’s B2C business, aiming to finalize the deal by the end of Q2 or early Q3, pending regulatory approvals. In response to inquiries about further mergers and acquisitions, Lindwall stated that the company is consistently exploring new opportunities, affirming that M&A is a critical element of their growth strategy: "It’s not a secret that M&A is a constant part of our growth strategy. I would say that it’s standard business that we always have a couple of potential M&A opportunities that we assess."
Although Betsson's sportsbook revenue rose by 1% in Q1, it faced challenges as casino revenue dropped by 4%. The EBITDA for the quarter was €50 million, reflecting a 36% decrease from €77.7 million in the same period last year. However, the Latin American (LatAm) region emerged as a significant growth area for Betsson, with revenue there climbing 25% and making up one-third of its total revenue.
Lindwall pointed to Peru as a standout market, expressing confidence in their brand's position and the strength of their technology in local markets: "I think we have a good brand position [in Peru]. We have some good sponsorship assets. We’ve been there for a while. Our technology is well adopted to the market and the market is well adopted to our technology. So I think we have a good position there."
He added that Betsson is committed to investing in several key LatAm markets for continued growth through marketing and sponsorship efforts: "LatAm is a part of our business where we put a lot of effort, and a few markets there are our focus markets where we invest quite a bit in marketing and sponsorships. So I do definitely expect continued growth there."
