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Betsson Ab Year End Report, 1 January – 31 December 2020

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Continued growth during the quarter with an EBIT increase of 59 percent

QUARTER OCTOBER – DECEMBER 2020

  • Group revenue was SEK 1,762.5 (1,289.5) million, an increase of 37% with an organic increase of 36%.
  • Casino revenue increased by 33%. Sportsbook revenue increased by 47% and the sportsbook margin was 7.3% (6.8%).
  • Operating income (EBIT) was SEK 317.8 (200.5) million, an increase of 59%, the EBIT margin was 18.0% (15.5%).
  • EBIT adjusted for one-off costs for provisions of losses on payment providers of SEK 44.4 million was SEK 362.2 million,
    equivalent to a margin of 20.6 percent.
  • Operating cash flow was SEK 223.9 (237.8 ) million.
  • Active customers increased by 44% to 989,969 (686,499).

FULL YEAR 2020

  • Group revenue was SEK 6,389.6 (5,173.0) million, an increase of 24% with an organic increase of 20%.
  • Operating income (EBIT) was SEK 1,125.2 (865.0) million, an increase of 30%. The EBIT margin was 17.6% (16.7%).
  • Net income was SEK 990.8 (787.1) million, corresponding to SEK 7.32 (5.69) per share.
  • Operating cash flow was SEK 1,384.4 (1,150.3) million, an increase of 20% compared to the same period last year.
  • The Board of Directors proposes to the AGM that SEK 502.9 (393.6) million, which corresponds to SEK 3.68 (2.88) per share,
    is distributed to shareholders.

CEO COMMENT

“ATH revenues in the fourth quarter with growth in all regions

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“Betsson ended 2020 with yet another strong quarter. Under the extraordinary circumstances that still prevail, online gaming continue to demonstrate its resilience to market fluctuations and Betsson demonstrates good profitability. During the fourth quarter, revenues increased by 37 percent compared to the previous year, with growth in all regions, and the operating profit increased by 59 percent. The increase is driven by both casino and sportsbook with a sportsbook margin that was slightly higher compared with the third quarter this year. We are pleased by the continued strong development in the Nordics, especially in Denmark and Sweden, at large driven by the “pay and play” brand Jalla Casino.

There are several reasons for Betsson’s success. The transition to digital entertainment has been further accelerated during the pandemic, which has benefited us, but in the long run Betsson’s underlying strengths are crucial in creating growth and shareholder value. Our long experience and the strong financial position mean that we can continue to implement our strategy with a focus on growth despite current challenges.

During the first nine months of 2020 Betsson made several acquisitions, which together with licenses obtained in other countries, entailed expansion with new brands to new markets while we continued to develop products and functions in existing markets. During the fourth quarter, Betsson continued on this offensive path. We obtained a license in Argentina and launched the Betsafe brand in Kenya. In December, Betsson obtained a license in Colorado, USA and preparations are now underway to launch our highly competitive Sportsbook there in 2021. There is great interest in our Sportsbook and our ambitions are high to develop the B2B offering as a sportsbook supplier. Our first B2B sportsbook customer ibet was intended to launch in time for the Euro 2020 but had to postpone due to the pandemic. ibet has now had a “soft launch” in the European market and we continue to evaluate additional business opportunities.

The pandemic still holds us all in a tight grip and Betsson’s focus is, as always, on safety and health, for our employees and for society in general.

We still face challenges, but we leave 2020 behind and continue with determination to benefit from our strengths to create a strong global and diversified product portfolio of strong brands and local expertise. The strong financial position enables investments in technology and existing product portfolio. And we are confident in our ambition with a scalable and flexible proprietary technology as well as highly dedicated and talented teams”.

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New focus for safer gambling as Clarion confirms launch of Sustainable Gambling Zone

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The Consumer Protection Zone (CPZ), which since its launch at ICE 2018 has developed to become the highest profile feature on the ICE show floor has been re-branded to become the Sustainable Gambling Zone (SGZ). 

The strategic decision has been taken following extensive stakeholder consultation and is set against the heightened importance placed on proactive customer interventions at earlier stages of the player journey.

The SGZ will be debuted at July’s iGB L!VE prior to its official launch at ICE 2025, the first edition of the industry’s most influential b2b gaming show to be held at its new home in Barcelona

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Clarion Gaming’s Director of Industry Insight and Engagement, Ewa Bakun, who has seen the CPZ develop to become the key platform for the industry to advance its understanding and implementation of safer gambling measures and raise standards said: “I must stress that this is much more than just a cosmetic exercise. Instead, the Sustainable Gambling Zone, with its refreshed focus, will engage with the broader stakeholder group of operators who are focused on long-term sustainability, something which goes way beyond simply meeting the regulatory mandate.

“The overarching objective of the Sustainable Gambling Zone is to be at the vanguard of initiatives to help develop healthy play from the outset which includes the incorporation of safer gambling considerations from the very start rather than as a compliance requirement.

“While not yet standard across the whole of the industry, this more holistic approach underpins the safer gambling dynamic. Its goal is to create a more sustainable business in which players continue to enjoy their gambling entertainment experience with the small proportion who are at risk of developing problems pro-actively identified and assisted by operators.”

Clarion Gaming Managing Director, Stuart Hunter added: “The relocation to Barcelona will enable us to expand the ICE and iGB Affiliate offerings but also raise the bar in terms of what we already deliver on behalf of the international industry.

“The intended broader appeal of the Sustainable Gambling Zone dovetails with our relocation and will bring the SGZ closer geographically to continental Europe and closer culturally to the Latin American markets that we serve.

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“Barcelona will open a new chapter for ICE/iGB Affiliate and their respective features, not least the Sustainable Gambling Zone.”

The post New focus for safer gambling as Clarion confirms launch of Sustainable Gambling Zone appeared first on European Gaming Industry News.

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INSPIRED LAUNCHES SOLID GOLD™: THE LATEST GEM IN THE FORTUNE COMMUNITY™ LINEUP!

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Inspired Entertainment, Inc., a leading B2B provider of gaming content, systems, and solutions, is delighted to launch Solid Gold™ to the Cat C market, the latest addition to our Fortune Community™ slot lineup. Fortune Community offers a multiplayer gaming experience tailored for the Category C and bingo markets. Fortune Community games can activate a community bonus during play, ensuring all eligible players can share in the rewards.

Prepare to embark on a nostalgic journey with Solid Gold™, a classic retro slot that seamlessly blends vintage charm with exhilarating thrills.

In Solid Gold, a Gold Bar character hovering above the reels brings players closer to victory. When these characters grace each of the three reels, they unlock one of three bonuses. During the Wild Pick bonus, players take charge and choose one of three reels to turn Wild – or two if they’re lucky. Once a reel is selected, a stack of Wilds fills the entire reel, whilst the Wild symbol substitutes for all other symbols to enhance or create wins.

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Players fortunate enough to trigger the Wild Pick bonus will have the opportunity to win a bonus spin. During this feature, the Wild reels will lock in position while the remaining reels spin again, providing players with an additional opportunity to win.

The Solid Gold community bonus steals the spotlight, played on alternative reels and offering 6 enticing prizes up for grabs. The reels will continue to spin until either a £100 jackpot prize is awarded, or a losing combination appears. Solid Gold not only offers players the opportunity to relive the golden era of slots but also engages them in a community bonus.

Richard Terry, UK Market Product Director, said: ” Solid Gold is the latest in a series of fantastic Fortune Community Cat C titles from Inspired, and once again sees the return of a much-loved classic game brand from yesteryear, likely to engage both new players with its absorbing presentation and experienced players with fond memories of the original product”

The post INSPIRED LAUNCHES SOLID GOLD™: THE LATEST GEM IN THE FORTUNE COMMUNITY™ LINEUP! appeared first on European Gaming Industry News.

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ESIC Announces Establishment of Global Esports Industry Advisory Board

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The Esports Integrity Commission (ESIC) is pleased to announce the establishment of its Global Esports Industry Advisory Board, designed to enhance integrity and ethical practices across the esports landscape. The Advisory Board will serve a pivotal role by providing expert advice to ESIC’s Chief Executive Officer on a range of critical industry issues. 

The primary function of the Advisory Board is to create a robust framework for integrity and fairness, setting a global benchmark for ethical conduct and fair competition in esports. The board will offer strategic insights, help shape policies governing fair play, liaise with key industry stakeholders, and act as ambassadors advocating for ethical practices. 

ESIC has appointed two highly esteemed members to inaugurate this board: 

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  • David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG), joins the Advisory Board with over fifteen years of experience in the video games industry, including significant roles at Activision-Blizzard and Electronic Arts. David’s profound impact on international and public affairs initiatives makes him an invaluable addition to the board. 
  • Robbie Douek, CEO of BLAST, also joins the Advisory Board, bringing a wealth of experience from his roles at Google and Disney, along with his leadership through major acquisitions. Robbie is celebrated for his strategic leadership and his instrumental role in elevating esports to a significant global entertainment platform. 

The formation of the Advisory Board is an engagement that underscores the commitment of its members to upholding and promoting the highest standards of integrity within the esports industry. The board will meet as required to address strategic challenges and ensure that ESIC’s initiatives effectively meet current and future industry needs. 

“Both David and Robbie bring a remarkable depth of knowledge and a passion for advancing the integrity of esports,” said Stephen Hanna, CEO of ESIC. “Their expertise will be crucial as we navigate the evolving landscape of esports and strive to maintain the integrity that our community expects and deserves.” 

Robbie Douek, CEO at BLAST, said: “I’m honoured to be given the opportunity to support the Global Esports Industry Advisory Board and ESIC in their ambition to create the best and fairest environment possible for players, teams and fans.” 

David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG) also commented: “It is a true honour to join the Global Esports Industry Advisory Board and support ESIC’s successful journey. Fairplay and integrity are at the core of esports. We owe it to the players and to the fans and for a better endemic industry governance” 

The post ESIC Announces Establishment of Global Esports Industry Advisory Board appeared first on European Gaming Industry News.

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