Swedish gambling giant Betsson recently delivered its 2025 report card. The company's annual revenue increased by 8% year-on-year, reaching 1.197 billion euros, which sounds like good news. However, a closer look at the profit statement is less optimistic: due to increased tax costs associated with operating in compliant markets, the company's profitability was squeezed. Both annual EBITDA and net profit slightly declined year-on-year. It's quite evident, as the company operates in 24 markets with local licenses globally, the revenue from compliant markets reached a new high of 68%, but higher gambling tax rates directly eroded profits. A slight decline in revenue in the fourth quarter added a touch of complexity to this "increased revenue but not profit" financial report.
Financial Performance: Increased Revenue but Not Profit
Betsson achieved revenue growth in 2025, but various profit indicators declined, clearly reflecting the costs of compliance transformation:
•Revenue Growth: Group revenue increased from 1.107 billion euros in 2024 to 1.197 billion euros.
•Profit Decline: Adjusted EBITDA slightly decreased from 316 million euros to 313.7 million euros; operating income dropped from 256.7 million euros to 253.1 million euros; net profit also slightly decreased from 183.7 million euros to 182.4 million euros.
•Quarterly Drag: Annual performance was affected by a 1% decline in revenue in the fourth quarter (to 303.9 million euros). EBITDA in this quarter significantly dropped by 20%. The CEO attributed the profit decline to reduced B2B income, increased gambling tax rates, and ongoing investments in products and technology.
Market Composition: Compliance and Regional Differences
Betsson's strategic focus is increasingly leaning towards regulated markets. In the fourth quarter, more than two-thirds of the revenue came from local licensed markets. Regional performance showed significant differentiation:
Central Europe, Eastern Europe, and Central Asia: Still the largest source of revenue (120.4 million euros), but due to reduced sports betting activities in Estonia and Georgia, revenue declined by 8.9%.
Latin America: With strong performances in Peru, Argentina, and Colombia, revenue increased by 7.9% to 84.3 million euros, becoming the second largest contributing region.
Western Europe: Revenue increased by 15.5% to 60.8 million euros, with Italy achieving a record high.
Nordic: Revenue decreased from 40 million euros to 33.6 million euros.
The company stated that its long-term goal is to exceed market growth rates and may exit B2C businesses in markets where it cannot obtain local regulatory licenses in the near future.
Future Strategy: Investment and Returns
Despite short-term profit pressures, Betsson's management remains optimistic about the future. The company has a strong cash reserve (322.7 million euros) and is committed to creating long-term value through investments and shareholder returns.
•Ongoing Investments: The company will continue to invest in products and technology to enhance customer experience and long-term competitiveness, although this has pushed up personnel costs.
•Returning to Shareholders: The board has initiated a 40 million euros share buyback program and proposed a dividend of 0.66 euros per share for 2025.
•Growth Opportunities: The CEO believes that upcoming major events like the World Cup are key opportunities to attract new customers.
On the business level, casino games (accounting for 72% of Q4 revenue) remain the absolute core, with 553 new games added during the quarter; however, sports betting revenue (accounting for 27%) performed poorly, with a 9.5% year-on-year decline. Betsson's case illustrates the common challenge operators face in balancing market expansion, compliance costs, and profitability amid the global tide of gambling industry compliance. For professional insights into global listed gambling companies' financial reports and strategic analysis, visit the PASA official website.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
