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Betsson AG, a prominent betting group, has released its Q1 financial results, revealing a decline in operating profits. Despite this, the company has seen success in emerging markets in Latin America, particularly in the growing sector of esports betting.
The company reported a revenue of €285.3m ($334 million) for the quarter, marking a 2.9% decrease from the same period in 2025. Operating profit saw a significant drop of almost half, falling from €64.0m ($75 million) to €34.0m ($39.8 million), while net profit decreased by 47.3% to €25.5m ($29.9 million).
Notably, Latin America experienced strong growth, with revenue increasing by 24.7% to €93.0m ($109 million). This surge has positioned the region as the second-highest revenue contributor for the company, trailing only behind Central and Eastern Europe, which saw a revenue decrease of 21.8%.
Several countries in Latin America are now opening up regulated gambling markets, with esports betting gaining popularity among consumers in the region.
Embracing a B2C Strategy for Long-Term Gain
The decline in profits has been attributed to Betsson’s transition towards business-to-consumer (B2C) services over higher-margin business-to-business (B2B) operations.
Revenue from B2B operations dropped from €90 million to €51 million, primarily due to reduced revenue from a single customer, as stated by the company.
Despite the higher license fees and payment provider costs associated with B2C operations, CEO Pontus Lindwall remains optimistic about the shift, believing it will lead to increased profits in the future.
When announcing the results, Lindwall expressed confidence in the long-term prospects of the markets they operate in, emphasizing the need for continued investments in regions with growth potential.
Casino Revenue Decline Offset by Strong Sports Betting Performance
While revenue from Betsson’s online casino products decreased by 4%, it still accounted for over 70% of the company’s total revenue.
In contrast, sports betting revenue saw a slight increase of 0.6%. The company attributes this growth to enhancements made to its sportsbook interface, including new features such as the Bet Builder function, AI-driven match previews, and enriched live statistics.
Betsson’s partnership with Oddin, providing esports odds feeds, live data, and stats, has also contributed to its success in the market. Additionally, the company recently secured a partnership with Paraguayan gambling firm JugaMax, further expanding its presence in Latin America.
Striving for Global Reach and Expansion
Despite a 6.9% revenue decline in the Nordic regions, particularly in Sweden and Denmark, Betsson remains focused on global expansion.
Aside from its efforts in Latin America, the company, which operates multiple online gaming brands, is eyeing entry into the Canadian market. This ambition led to the acquisition of Rhino Entertainment Group’s B2C business, along with various technology assets to bolster its B2B operations.
Lindwall emphasized the company’s strong position in the market, backed by a competitive offering, a solid brand, and a proven strategy, positioning Betsson favorably to seize opportunities in the global online gaming sector.
Although initial investor response to the profit decline was negative, with the company’s stock price dropping by almost 6%, it quickly rebounded to 99.25 SEK ($10.6) following the announcement.