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BETSSON AB (PUBL) INTERIM REPORT APRIL – JUNE 2022

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All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region

 

QUARTER APRIL – JUNE 2022
• Group revenue was EUR 186.3 (172.8) million, an increase of 8%. Organic increase of 13%.

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• Casino revenue increased by 1%. Sportsbook revenue increased by 22% and the sportsbook margin was 8.3% (8.5%).

• EBITDA was EUR 39.3 (46.6) million, a decrease of 16%. The EBITDA margin was 21.1% (27.0%).

• Operating income (EBIT) was EUR 29.2 (37.8) million, a decrease of 23%. The EBIT margin was 15.7% (21.9%).

• Net income was EUR 28.6 (33.3) million, corresponding to EUR 0.21 (0.24) per share.

• Operating cash flow was EUR 37.8 (56.3) million.

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• Net debt was EUR -19.8 (14.6) million.

• Active customers increased by 21% to 1,246,719 (1,027,635).

 

CEO COMMENT
 

“All-time high revenue driven by sportsbook performance and growth in Latin America and the CEECA region”

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Betsson’s second quarter featured continued good growth with all-time high revenue and further investments to support our expansion. The Group’s organic growth was 13 percent, mainly driven by Latin America and the CEECA region (Central and Eastern Europe and Central Asia), where we see long-term growth potential as these markets still have a low share of online gaming.

The sportsbook business showed a strong development in the quarter – gross turnover increased by 20 percent and the margin was 8.3 (8.5) percent – leading to all-time high revenue. Some of the football World Cup qualifiers in June ended in particularly favourable outcomes for Betsson and contributed positively to the margin in the quarter. Casino gross turnover also reached a new quarterly all-time high, while revenue came in at the second-best level ever.

Betsson’s strategy is based on diversified revenues from existing and new markets, and in June Betsson became majority owner of the local gaming operator Betbonanza in Nigeria. Since last year, the regulated market in Germany is marked by a low level of channelisation, due to extensive restrictions, high taxes, and an unclear licensing process. During the quarter, a decision was taken to only apply for one online casino license in Germany. On the sports side, Betsson continues to offer betting on horses through the Racebets brand and has a sportsbook license which is currently not operated.

The B2B initiatives continue according to plan, and discussions are currently being held with several potential sportsbook customers in both North America and other parts of the world. The Group’s ownership in the technology platform provider Strive, focused on North America, increased from 35 to 40 percent during the quarter. Strive provides a new, purpose-built and modern US iGaming platform, i.e. Player Account Management system (PAM), which supports Betsson’s US strategy.

Operating income (EBIT) amounted to 29.2 (37.8) MEUR, corresponding to an EBIT margin of 15.7 (21.9) percent. The cost increase compared to last year was driven by the general expansion while the change in geographic mix, with a higher revenue share from Latin America and no revenue from the Netherlands, led to a lower realised margin. We continue to invest in product and tech development to secure that we have a competitive product for all our markets. Our sportsbook offering was strengthened in motor sports, table tennis and esports, resulting in a significant increase in the number of live events offered for betting. In Sweden, a new native app was developed for the brand Jalla Casino, and our live casino offering was broadened in Italy. On top of the positive financial development in the second quarter, we also won six industry awards in different categories related to an attractive customer offering and a sustainable business model for gaming.

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Betsson’s commitment to football continues. After eleven years of waiting, AC Milan once again were crowned Italian champions and we share the fans’ great joy in recapturing the scudetto. In May, the sponsorship with AC Milan was renewed, which means that Betsson now also becomes exclusive sponsor for the club in Latin America. The region is important for the club with millions of fans and the history of stars like Kaká and Ronaldinho. Further, similarly to last summer Betsson is a proud sponsor of Copa America Femenina 2022, which is the Latin American equivalent of the UEFA Women’s Euro 2022 and takes place during July. The interest in women’s football is growing strongly and the previous championship had more than 20 million TV viewers.

In conclusion, we see that macro and geopolitical factors continue to dominate the world around us, with great uncertainty and concerns around war, inflation, higher interest rates and potentially a coming recession. Despite uncertain capital markets, we recently refinanced our bond until 2025, which gives us financial flexibility to continue investing in both organic growth and selective acquisitions. We continuously monitor the macroeconomic trends but also note that historically Betsson’s business has been relatively unaffected by the general business cycle. The first weeks of July are off to a good start and despite the macro factors, we are rather optimistic as we look ahead to the rest of 2022, which has many planned activities for Betsson, including market launches in Mexico and Ontario, as well as the football World Cup during the seasonally strongest fourth quarter.

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LEON Obtains Sponsorship Agreements with Four MMA Fighters to Enhance Brand Visibility

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LEON, the globally recognized online sports and casino entertainment brand, has partnered to sponsor four promising mixed martial arts (MMA) fighters: Justin Tafa, Junior Tafa, Hakaraia Wilson, and Joshua Culibao.

This partnership marks an exciting expansion of LEON’s sports collaboration portfolio, with the four Australasian athletes set to engage in various promotional activities and fan interactions, all while representing the LEON brand. These efforts aim to bring fans closer to the thrilling world of MMA.

The six-month promotional campaign will culminate in an unforgettable fight night in Australia this August, where the four fighters will demonstrate their prowess in the octagon.

The Tafa brothers and Culibao are well-known figures in the UFC, and Wilson is a rising star in professional MMA. Through LEON’s platform, they will provide regular updates on their training and progress and engage with fans via personal calls and exclusive online events.

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LEON is committed to offering a secure, enjoyable, and innovative environment for casino gaming, sports, and esports fans. It prioritizes both entertainment and safety and advocates for responsible gaming practices.

Callen Mowatt, Agent at Ginnen Group Sports Management: “We are thrilled to join forces with such exceptional brand. Each of these athletes embodies the values of perseverance, determination, and courage, which we believe resonates deeply with with the brand. We look forward to being able to showcase their inspiring journeys as they reach new heights in their careers”

The Brand Communications Director of LEON commented, “Our partnership with the dynamic world of combat sports not only supports the aspirations of these talented athletes but also reinforces our pledge to deliver exhilarating and engaging experiences to our audience.

This collaboration reflects LEON’s commitment to innovation and community involvement, mirroring the triumphant cheers that echo across the sports landscape.

Our goal is to assist young talent and support emerging athletes. We understand the challenges they face and the dedication required to excel as top fighters.

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Through this sponsorship, we aim to motivate our audience to pursue their dreams and strive for success. We extend our best wishes to the four fighters as they train for their upcoming matches over the next six months.”

For more information, please click here.

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EGT Digital has extended its partnership with efbet for Romania

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EGT Digital is pleased to announce that it has enhanced its collaboration with efbet for Romania. Now the visitors of efbet.ro are able to dive into the rich gaming diversity of the bestsellers Bell Link, Clover Chance, High Cash and Single Progressive Jackpot.

Tsvetomira Drumeva, Head of Sales at EGT Digital, expressed her satisfaction with the deal: “Efbet is a valued partner of ours and we are happy that the Romanian customers of the operator already have the opportunity to enjoy our slot titles. I believe that, as always, we will live up to their expectations, even surpass them.”

Tsvetina Georgieva, Marketing manager at efbet, also gave a positive evaluation of the partnership. She said: “We are well familiar with EGT Digital’s games, which have been available on our Bulgarian site for several months. Led by our desire to enrich our customers’ gaming choices with high-quality content in more markets, we thought the time had come to present the provider’s games in Romania. The results demonstrated so far show that we made the right decision.”

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7777 gaming partners with Relum

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Leading online casino game developer 7777 gaming has joined forces with Relum, a trusted casino engine, to deliver an unparalleled gaming experience to operators worldwide.

This collaboration enables 7777 gaming to bring its extensive portfolio of over 140 thrilling games to Relum’s network of esteemed operators across the globe. Through this integration, online casinos powered by Relum will gain instant access to 7777 gaming’s engaging and diverse selection of games, such as Cash 100, Barbarian, Candy Anyway, Sea of Treasure, Diamonds of Majesty, and Cash 20x. These immersive games promise an unparalleled gaming experience, combining cutting-edge technology with engaging narratives. .

Relum, a trusted name in the industry, has rapidly ascended to a leading position by developing a state-of-the-art casino aggregation platform. The platform provides instant access to a vast array of games, boasting over 20,000 titles from more than 240 content providers through a single API integration and toolbox such as free round, jackpots, tournaments and partner success service to support player engagement and revenue growth opportunities.

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Elena Shaterova, Chief Commercial Officer at 7777 gaming, shared her enthusiasm about the partnership: “Our goal at 7777 gaming has always been to set new standards in the gaming industry. Collaborating with Relum allows us to showcase our commitment to innovation and excellence. We look forward to a successful partnership that will satisfy the players’ requirements for next level of entertainment in any online casino.”

Ashot Sahakyan, Chief Operating Officer at Relum said: “Relum is committed to providing our operators with the most diverse and engaging content available in the market. 7777 gaming’s portfolio perfectly aligns with our vision, and we are confident that this partnership will elevate the gaming experience for our clients and their players.”

This partnership exemplifies the commitment of both 7777 gaming and Relum to delivering top-tier gaming solutions and reinforces their positions as leaders in the online casino industry.

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