BETSSON AB (PUBL) INTERIM REPORT JANUARY – JUNE 2024

QUARTER APRIL – JUNE 2024

• Group revenue was EUR 271.5 (236.8) million, an increase of 15%. Organic increase of 38%.
• Casino revenue increased by 16%. Sportsbook revenue increased by 13% and the sportsbook margin was 8.6% (8.2%).
• EBITDA was EUR 77.6 (67.6) million, an increase of 15%. The EBITDA margin was 28.6% (28.5%).
• Operating income (EBIT) was EUR 64.1 (54.5) million, an increase of 18%. The EBIT margin was 23.6% (23.0%).
• Net income was EUR 44.4 (46.9) million, corresponding to EUR 0.33 (0.37) per share.
• Operating cash flow was EUR 75.8 (89.2) million.
• Net debt was EUR -93.1 (-138.8) million.
• Active customers increased by 25% to 1.4 (1.1) million.

THE PERIOD JANUARY – JUNE 2024

• Group revenue was EUR 519.7 (458.7) million, an increase of 13%. Organic increase of 32%.
• EBITDA was EUR 149.2 (121.9) million, an increase of 22%. The EBITDA margin was 28.7% (26.6%).
• Operating income (EBIT) was EUR 122.0 (97.5) million, an increase of 25%. The EBIT margin was 23.5% (21.3%).
• Net income was EUR 87.2 (83.5) million, corresponding to EUR 0.63 (0.64) per share.
• Operating cash flow was EUR 125.8 (137.9) million.
• The AGM approved dividend to shareholders of EUR 88.5 (59.7) million, corresponding to EUR 0.645 (0.436) per share. The first of two installments was distributed to the shareholders in June.

CEO COMMENT

The best quarter ever for Betsson — new record figures

The second quarter of 2024 meant continued high growth and strengthened profitability with new records in both revenue and operating income for Betsson. Revenue increased by 15 percent and operating income increased by 18 percent, while the operating margin strengthened to 23.6 (23.0) percent. This was our tenth consecutive quarter with increasing operating income. Organic revenue growth was 38 percent, primarily driven by the B2C operations.

The high customer activity continued throughout the quarter – as expected, the UEFA EURO and Copa America contributed positively in June – resulting in strong key figures across the board. The number of active customers increased by 25 percent and deposits increased by 15 percent. The growth in gross gaming turnover was 7 percent for casino and 17 percent for sports betting compared to the corresponding quarter of the previous year.

I am particularly delighted to note the improved operating margin in the quarter and the highest ever operating income, given the increased proportion of revenue that was subject to local gaming taxes. The share of revenue from locally regulated markets amounted to 55 (36) percent and includes Peru for the first time, where local gaming tax was accrued during the entire second quarter. For several years, Betsson has established itself as the most well-known brand for sports betting in Peru. In June, the Group received its first local licenses for the newly regulated market in the country, for the Betsson and Betsafe brands, and in July licenses for the Inkabet brand have also been obtained.

I am proud to state that Betsson’s involvement in sports continues with full force. By far the most popular sport for betting at Betsson is football and in July a partnership agreement was announced with Serie A champions and last year’s Champions League finalists Inter, which means that for the next four years the Betsson.sport brand will feature on the front of the team’s jerseys. Inter is not only one of the world’s most successful football clubs ever, but also a global brand with hundreds of millions of fans. The club has particularly strong ties to Latin America, which is a focus region for Betsson, with current Argentine star player Lautaro Martinez and former club icons such as Zanetti, Cambiasso, Julio Cesar, Samuel, Cordoba, Milito and Ronaldo, just to name a few.

At the end of June, Betsson was awarded an AAA rating by Morgan Stanley Capital International (MSCI) ESG Ratings, an upgrade from the previous AA level. The AAA rating is the highest possible and confirms our dedicated efforts in environmental, social, and governance (ESG) matters, which we see as a prerequisite for running a profitable business long-term.

I am pleased with what we have delivered so far this year and see good growth opportunities in the second half of the year as well. We continue to invest in geographic expansion and the product offering to enable continued profitable growth and value creation for a long time to come.