Betsson experienced its most successful third quarter yet, marked by an increase in active customers and a record revenue of €326.5 million for Q3 2026, a rise of 10% from the previous year’s €295.8 million. This growth was partially due to the consolidation of Rhino Entertainment Group starting in August. However, profit significantly declined, with earnings before interest and taxes (EBIT) dropping 31% to €46.1 million, resulting in a margin decrease to 14.1% from 22.6%. Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) was down 23% to €63.4 million. Net income decreased to €28.2 million from €50.1 million, with earnings per share slipping from €0.34 to €0.19. Operating cash flow also fell to €54.5 million from €64.8 million.
CEO Pontus Lindwall emphasized the importance of sequential trends, noting that EBIT improved by 9% from Q2, marking the second consecutive quarterly increase. He stated, “Maybe the most important thing for an investor is that we increased EBIT sequentially. So it’s important that we are now growing EBIT again.” However, he refrained from predicting when profit growth might return year-over-year, commenting, “It’s hard to tell when we will see profit growth compared with the same quarter last year. I don’t know that yet, but we are certainly moving in the right direction.”
The company’s gross profit also took a hit, decreasing by €9 million to €181 million, with gross margin dropping to 56% from 64%. Revenue from locally regulated markets surged by 35%, now accounting for 78% of the total revenue compared to 64% previously. This shift resulted in an increase of approximately €28 million in gaming taxes.
When asked if Betsson’s focus on Latin America indicates a transition to a lower-margin model, Lindwall affirmed this, saying, “Yes. We are now growing a lot in Latin America, in a couple of regulated B2C markets. Those come with a different cost structure and, most importantly, a different tax structure.”
Latin America has become Betsson's largest revenue source, representing 36% of total sales, and grew by an impressive 52%. Active customers in the region rose by 40% to nearly 1.9 million. On the impact of the World Cup, Lindwall noted, “It lifts volumes a bit, but even more so it lifts the number of active users, and that’s important. So I hope we can manage to keep some, or most, of those customers going forward.”
Western Europe also contributed positively, growing 14% driven by Italy’s strong performance. Additionally, Betsson’s Canadian business saw revenue more than double. Meanwhile, Central & Eastern Europe and Central Asia experienced a 17% decline due to decreased B2B license income, and revenues from the Nordics fell by 10%.
Casino revenue peaked at an all-time high, increasing 14% and making up 77% of total revenue. Conversely, sportsbook revenue saw a modest 1% increase to €72 million, yet the sportsbook margin slightly decreased from 8.8% to 8.1%.
B2B revenue plummeted by 39%, down €30 million due to reduced income from a major customer, while B2C revenue rose by 28%. B2B now constitutes just 14% of total revenue and has dipped slightly from Q2. Lindwall expressed a desire for stronger B2B growth and reported that the downturn at the primary customer has stabilized, emphasizing the potential for their technology assets acquired from Rhino to bolster B2B operations.
Addressing regulatory challenges, Lindwall criticized some potential Latin American taxes as misinformed, stating, “Any kind of tax on turnover doesn’t really work for this industry.” Betsson minimized its exposure in Brazil, which is currently facing a near-complete ban on online gaming, labeling the decision “a shocking” one but remaining open to future changes. “No country has managed to shut down internet gaming and get away with it,” he added.
At the end of September, Betsson reported a net cash position of €98.3 million, down from €220 million in the previous year after spending around €59 million on Rhino. Lindwall mentioned the company is exploring opportunities in the market, noting, “We could do a sizeable deal… given the structure of our balance sheet, we wouldn’t be afraid to take on some more debt to do a bigger acquisition.”
He also shared his enthusiasm for prediction markets, despite regulations posing limitations in most of Betsson’s operating regions. When asked about establishing a regulated framework for these markets in Europe, he responded without hesitation, “Yes, I would definitely press that button.” This, he believes, could create additional products in markets with high tax rates while maintaining a competitive edge.
As for the beginning of Q4, the average daily revenue through October 18 was 11% higher than the daily average for Q4 2025, despite a sportsbook margin that remains below the eight-quarter average. Total revenue for the first nine months of the year is reported at €922.1 million, a 3% increase, while EBIT has declined 39% to €122.3 million.
