Shares in Betsson slumped by nearly 20 per cent in Stockholm Friday after the company revealed a decline in both revenue and operating income in its preliminary results for the final quarter of 2025.
Betsson’s revenue is expected to decline by 1 per cent to €304 million in Q4 2025, with a 3 per cent increase in casino revenue to €220 million offset by a 9 per cent drop in sportsbook revenue to €83 million. Revenue from other products fell to just €1 million, down from €2 million a year ago.
The sportsbook margin was 8.8 per cent during the quarter, compared to 9.8 per cent in Q4 2024.
License revenue for the B2B business declined by 13 per cent to €71 million in the quarter, mainly due to one of Betsson’s B2B customers having lower revenue than in the corresponding period last year.
The share of revenue from locally regulated markets continued to increase and reached the highest level ever for Betsson at 68 per cent (Q4 2024: 60 per cent), which drove higher gaming taxes during the quarter, up 23 per cent year-on-year.
The Nordics recorded a 15 per cent fall in Q4 revenue to €34 million, while there was a 9 per cent drop in revenue from the Central & Eastern Europe and Central Asia (CEECA) region to €120 million. This was partially offset by a 15 per cent increase in revenue from Western Europe to €61 million and an 8 per cent rise in Latin America revenue to €84 million. Rest of World revenue rose 25 per cent to €5 million.
Betsson said that the fourth quarter was characterized by continued good customer activity with an increased number of active players compared to the same period last year. Regionally, revenue continued to increase in Western Europe and Latin America, but there was a slowdown in the Nordic region and CEECA.
Continued investments were made in the product and technology organisation to strengthen the customer experience and long-term competitiveness. An increased number of employees and non-recurring items drove higher personnel costs, up 16 per cent at €52 million for the quarter.
As a result of the higher expenses and increased taxes, operating income (EBIT) for the period is expected to be 24 per cent lower at €53 million in Q4 2025.
“Betsson’s business is diversified and spans across many markets,” said president and CEO Pontus Lindwall. “The business in general is developing positively. Last year, we made significant investments in product development, which is mainly done with our own employees and leads to higher personnel costs.
“I am optimistic about 2026 where I am especially looking forward to the FIFA World Cup and also to be able to start reaping the benefits of the investments we have made in product development.”
The average daily revenue so far in the first quarter of 2026, up until and including 15 January, has been 1 per cent higher than the average daily revenue of the full first quarter of 2025.
Betsson will publish its report for the fourth quarter 2025 on Thursday 5 February.
Shares in Betsson AB (STO:BETS-B) were trading 19.94 per cent lower at SEK108.00 per share in Stockholm Friday following the announcement.