Betsson operating income falls 47% on tax, B2B slump

Betsson reported a 47% drop in operating income in its latest financial report, attributing the decline to higher gambling taxes and weaker demand in its business-to-business unit.

The company identified tax increases in several key markets and slower uptake of its platform and technology services by B2B clients as the main drivers of the fall in profits.

Higher levies on gaming revenue raised the effective cost of doing business and reduced the gross gaming revenue available to cover operating costs in the period.

The B2B segment, which supplies platform and technology services to other operators, recorded lower volumes and delayed customer launches. Those factors reduced recurring revenue and limited gains from new client signings.

Management noted the firm is monitoring regulatory changes and assessing operational responses to ease margin pressure. Planned actions include tighter cost controls, a greater focus on higher-margin markets and continued investment in customer acquisition for its consumer brands.

The results come amid regulatory changes across several European and Latin American markets that have affected tax regimes and compliance costs for online gaming companies.

Betsson is listed on Nasdaq Stockholm and operates online casino, sports betting and poker brands, along with platform services for other operators.

Investors and analysts will monitor the group’s next financial update for signs that the B2B segment is stabilizing and that the company has absorbed the tax increases.