Now that the operating profit is dropping by about 25% from a year ago, can we still consider Betsson to be at P/E 7? Even though the share price came down over 20%, the valuation might have even risen if one believes that this weakness will continue in the same way through 2026. I don’t personally believe this, but it wouldn’t surprise me if the weakness continued for maybe one more quarter. After all, there will be more employees in 3 months compared to a year ago, and they’ll likely be investing more than before. Will the operating profit remain sluggish until the football World Cup arrives? Trump’s antics could negatively affect Betsson if the risks materialize, as there has already been talk of boycotts. If countries actually dropped out of the tournament, the World Cup could become a total flop and less betting would also take place.
However, in my eyes, Betsson is starting to look like a quite attractive choice. I might even pick up some shares if the nosedive continues at the start of the week.