Betsson Full Year Results Show Growth, Q4 Tax Concerns
Pontus Lindwall
Betsson’s full year results show how the company stayed steady in 2025 despite tough regulatory headwinds. The Stockholm-listed gaming group saw its operating income dip by 1%, going from €256.7m in 2024 to €253.1m in 2025. Yet the company proved resilient as tax pressures mounted.
The fourth quarter of 2025 brought bigger challenges to Betsson’s revenue patterns. Group revenue fell 1% to €303.9m from €306.8m. The company’s profitability took a harder hit during this time. EBITDA dropped 20% to €69.3m from €86.4m, while operating income fell 24% to €53.2m from €70.2m. All the same, Betsson grew stronger in regulated markets. These markets now make up 68% of its revenue, up from 60% in 2024. This expansion came with a price tag – higher taxes. The French market shows this clearly, where sports betting taxes jumped from 54.9% to 59.3% of gross gaming revenue.
Betsson Reports Full-Year Revenue Growth Despite Profit Dip
Betsson AB hit a major milestone in 2025. The company posted record revenue of €1.197 billion, showing an 8% increase from €1.106 billion in the previous year. Even more impressive was their organic growth rate of 13%. The revenue growth didn’t boost profits though, as both EBITDA and operating income dropped by 1% compared to last year.
The Swedish operator saw its EBITDA decrease to €313.7 million from €316.0 million. This led to a lower EBITDA margin of 26.2% compared to 28.6% in 2024. The company’s operating income (EBIT) also fell to €253.1 million from €256.7 million, and the EBIT margin dropped from 23.2% to 21.1%.
CEO Pontus Lindwall explained the squeeze on profits: “Lower B2B revenue, higher gaming taxes and continued investments in product and technology affected profitability negatively”. Rising personnel expenses also contributed to the margin reduction.
The company invested in product development mainly through its in-house staff, which pushed personnel costs higher. Despite these short-term profit challenges, Lindwall remained optimistic about 2026. He said: “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”.
Q4 Results Reveal Impact of Higher Taxes and Costs
Betsson’s bottom line felt the strongest effects of regulatory costs in the fourth quarter of 2025. Their Q4 revenue dropped by 1% to €303.9 million, while operating income fell sharply by 24.2% to €53.2 million. Three main factors led to this significant decline in profits.
Revenue from locally regulated markets hit a record 68% compared to 60% in Q4 2024. This pushed gaming taxes up by 23% to €53 million from €43 million. The company’s personnel costs rose to €51.9 million from €45.0 million because of geographic expansion, acquisitions, and higher investments in product and technology development.
B2B revenue fell by 14% to €71 million from €82 million, making up 23% of group revenue instead of the previous 27%. One major B2B customer’s lower activity caused this decrease.
These changes in revenue mix affected the gross margin, which decreased from 65.3% to 60.5%. Looking at specific areas, casino revenue grew by 3%, but sportsbook revenue fell by 9% and margins dropped to 8.8% from 9.8%.
The EBIT margin shrank to 17.5% from last year’s 22.9%. This shows how challenging it is to balance growth and profitability in markets with increasing regulations.
Regional Trends Show Mixed Performance Across Markets
Betsson’s fourth quarter performance showed dramatic regional variations. Western Europe stood out with revenue of €61 million, showing a 15% increase from last year’s €53 million. The Italian market drove this growth as Betsson captured larger market shares in both casino and sports betting segments.
Revenue from Latin America reached €84 million, up from €78 million in Q4 2024, marking a 7.9% year-on-year growth. Casino operations flourished in Peru, Argentina and Colombia. The company’s recent expansion into Brazil and Paraguay also contributed to this positive trend.
Traditional strongholds showed troubling signs of decline. Nordic revenue dropped significantly to €34 million, a 15% decrease from €40 million the previous year. This decline reflects an ongoing weakness in these mature markets.
The CEECA region (Central and Eastern Europe and Central Asia) remained Betsson’s biggest revenue generator at €120 million but saw a 9% decline from €132 million. Reduced sportsbook activity in Estonia and Georgia led to this downturn, though Croatia and Greece showed positive growth.
B2C operations grew by 4% (€9 million) compared to the previous year. However, B2B revenue declined by 14% (€12 million), largely due to reduced activity from a major B2B client.
