Sustained Sales and Profit Growth Could Be a Game Changer for Betsson (OM:BETS B)

• Betsson AB recently reported its third-quarter and nine-month 2025 earnings, showing sales of €295.8 million and €893.1 million, and net income of €47.6 million and €144.7 million, respectively, all higher than the same periods last year.
• This sustained growth in both sales and profitability highlights Betsson’s momentum across its primary markets and reflects the company’s focus on expanding its revenue streams while maintaining operational efficiency.
• We'll now examine how Betsson’s higher quarterly and year-to-date earnings influence its investment narrative and future outlook.

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Betsson Investment Narrative Recap

To be a shareholder in Betsson, you need to believe in the company’s ability to convert its expanding international presence and operational scale into consistent top and bottom-line growth, despite mounting regulatory headwinds and rising costs. The latest earnings report underscores Betsson’s ongoing sales and profit growth but doesn’t significantly shift the narrative around the key short-term catalyst, continued traction in high-growth markets, nor does it materially reduce the biggest risk: regulatory-driven tax and margin pressure.

Among recent developments, the approved increase in Betsson’s ordinary dividend earlier this year stands out as particularly relevant in the context of the company’s profitability. While robust earnings support the dividend payouts, pressures from higher gaming taxes and regulatory burdens could eventually test this commitment if costs accelerate faster than revenue growth.

However, investors should also keep in mind that as regulated revenues rise, the growing impact of gaming taxes could ...

Read the full narrative on Betsson (it's free!)

Betsson's narrative projects €1.5 billion revenue and €295.8 million earnings by 2028. This requires 7.0% yearly revenue growth and a €104.3 million earnings increase from €191.5 million today.

Uncover how Betsson's forecasts yield a SEK192.50 fair value, a 29% upside to its current price.

Exploring Other Perspectives

The 22 fair value estimates from the Simply Wall St Community range from SEK150 to SEK479,351, highlighting strong disagreement. This diversity of opinion contrasts with the persistent risk that increased tax burdens may challenge sustained earnings growth, prompting you to consider multiple viewpoints before forming your own outlook.

Explore 22 other fair value estimates on Betsson - why the stock might be worth over 3x more than the current price!

Build Your Own Betsson Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Betsson research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Betsson research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Betsson's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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