Betsson AB

Sportbook across all bets and gaming solutions was more than 1.8 billion euro, an increase of 10% year over year and another all time high. Sportbook margin was 8.0%, which is higher than the 6.6% margin in the first quarter last year and slightly above the two year rolling average margin of 7.8%, but lower than the 9.8% in the fourth quarter last year. Sportbook revenue increased by some 22% compared to last year and amounted to 80 million. The casino turnover is the second highest ever, just slightly below Q4 last year and represents an increase by 9% year on year. Casino revenue increased by 18%, which is also the second highest casino revenue ever, only beaten by Q4 last year by some 1.5 million euro. Casino revenue represented 72% of the group's total revenue in the quarter, and sportbook sum 27%. Reported revenue for the first quarter amounted to 294 million euro, the second highest revenue ever in a single quarter, and an increase of 18% year on year, and 20% organic growth. Compared to Q4 last year, this quarter contains two days less of revenue, This, in combination with the highest port margin in Q4 last year, explains the slight sequential step down in revenue in this first quarter. Revenue from locally regulated markets increased by 60% compared to last year and now constitutes 59% of total revenue in the first quarter. Revenue growth is coming from both the B2C and the B2B business in the quarter. where the B2C business contributed with 204 million in revenue, while some 90 million came from license revenue from B2B customers. The increased license revenue in the quarter is driven by both continued growth for existing customers and the addition of new B2B customers. The acquisition of Sporting Solutions in Q4 2024 and the acquisition of Kikitech in 2022, in combination with continuous improvements and investments into the Sportbook and Casino products, have strengthened the Group's B2B offering. Splitting revenue by region, we see growth compared to previous year in all regions except for the Nordics, which is down by 19% compared to last year. Sweden and Denmark reported decreased revenue in the quarter compared to corresponding period last year, driven by decreased activity in both the sport book and the casino product. The Nordic region represented 13% of the group's total revenue in the first quarter. Revenue from Western Europe increased by 28% year on year, or by 12 million euro. Revenue from Belgium increased compared with the corresponding period last year, mainly driven by the casino product. The Italian market is also contributing to the growth in the Western Europe region, driven by new records for both deposits and turnover. Italy reported all-time high revenue in the first quarter, mainly driven by the casino product. The Sportbook product reported increased activity and increased revenue, both compared with the corresponding period last year and the previous quarter, but is relatively smaller than the casino product in Italy. The Western Europe region represented 19% of total revenue in the quarter. Revenue from Central and Eastern Europe and Central Asia region, the Sika region, increased by 11%, driven by growth in both sportbook and casino. Croatia and Greece reported increased revenue in the quarter with new records for deposit, sportbook turnover and casino turnover in the latter. Lithuania, Estonia and Georgia reported decreased revenue compared with the corresponding period last year. Decreased revenue in Georgia and Lithuania is mainly driven by player friendly results in the Sportbook product. The Sika region represented 42% of the group's total revenue. Revenue in Latin America region increased by 31 million euro, representing an increase of 70% compared to the same period last year, mainly driven by high activity in the Casino product. The Sportbook product benefited from a higher Sportbook margin and reported increased revenue compared with the corresponding period last year. Argentina continued to show strong underlying activity in deposits, increased turnover in both the Casino product and the Sportbook and reported all-time high revenue in the first quarter. Peru reported revenue growth compared to the corresponding period last year, driven by growth in both the Sportbook and the Casino product. As Pontus mentioned, the group received a local license in the newly regulated Brazilian market in February, covering both online casino and sports betting, but we did not go live until April, so no revenue from Brazil was reported in this first quarter. Also at the end of 2024, the group obtained a license covering online casino in Paraguay, and in February, a technical launch took place, but no material revenue has been recorded as of yet. The Latin America region represented 25% of the group's total revenue in the first quarter. The development in operating income in this picture is broken down and explained by the different line items in the P&L. Revenue has increased by some 46 million euro and following that increased cost of services provided as well. The increase in cost of services provided is, apart from revenue growth, mainly explained by higher gaming taxes, following a 60% increase in revenue from locally regulated markets. Gross profit increased by 24 million euro compared to the same period last year and amounts to 188 million euro, which corresponds to a gross profit margin of 64% compared to 66% last year. Marketing spend increased by 5 million euros compared to last year and corresponds to 18% of total B2C revenue and to some 23% when including affiliate marketing costs as well. Increased marketing spend is primarily explained by enhanced marketing efforts in Western Europe and Latin America. Personal expenses increased by some 8 million euro in the first quarter compared to last year due to the addition of some 500 employees following geographical expansion and acquisitions. To give some more color to this, Betsam France was consolidated as from the third quarter last year, following the increased ownership. Sporting Solution was consolidated as from the fourth quarter last year, following the acquisition. And Bukma Helska in Poland was added as from the first quarter this year. This, in combination with organic focus on product and tech development, explains the bulk of the increased number of headcounts within the group. In addition to increased number of headcounts, yearly salary revisions and performance-related compensations explain the increased cost compared to the same period last year. Depreciation and amortization costs are more or less flat compared to last year. Other items include other external expenses, which has increased by some 5 million euro, driven by investments in technology and product development on the Sportbook side. Other items also include capitalized development costs and other operating income and expenses, which are more or less flat compared to previous year. Operating income amounts to 64 million euro, an increase of 11% compared to last year. The EBIT margin was 21.8% compared to 23.3% last year. Operating cash flow amounts to 86.4 million euro compared to 50 million in the same period last year. Operating cash flow is driven by increased operating income and positively impacted by changes in working capital by some 15 million euro. The positive effect from working capital comes from decreased receivable on payment providers. Cashflow from investing activities sums up to 22.9 million and relates to investments in own product and technology development, and partly by the acquisition of BetClick Italy, the acquisition of BookMoharska in Poland, and a deferred payment from acquisition of the BetFirst in Belgium. Cashflow from financing activities impacted cashflow by 4 million, mainly driven by paid dividend to minority shareholders. Betsson has at the end of March a net cash position of 178 million euro and an equity ratio of 63%. On a yearly basis, operating cash flow has increased over time, although we have seen some fluctuations between the intra-year quarters. 2025 has started well with operating cash flow of 86 million euro, which reflects a cash conversion ratio of more than 100%. When it comes to earnings per share, we can also conclude an increasing trend over time, somewhat negatively affected in 2024 by increased taxes following the implementation of the Pillar 2 framework. However, this year has come to a good start with EPS growth of 17% compared to the same period last year, amounting to 0.35 euro per share. Now back to you Pontus to present the trading update and to summarize the start of 2025.

Thank you, Martin. So let's look at how the second quarter has started. The average daily revenue in the second quarter of 2025, up to and including the 27th of April, has been 17% higher than the average daily revenue of the entire second quarter of 2024. During the measurement period so far in April, the sportsbook margin has been higher than the historical average. And now let's quickly summarize the highlights of the first quarter 2025. The high customer activity continued during the quarter with new quarterly records in customer deposits and gaining turnover. Revenue was up 18% year over year and EBIT was up 11% as we are absorbing higher gaming taxes. The share of revenue from locally regulated market was 59%. Our business continues to generate strong cash flows and we have a robust balance sheet that enable us to continue to invest in future growth and return cash to our shareholders. Operating cash flow and earnings per share showed significant growth in the quarter. And so far we have seen a strong start to Q2, up 17% as per the day before yesterday. As the official main partner of Inter, we are thrilled to follow the first leg of their Champions League semi-final tomorrow against Barcelona. And we are not the only ones getting ready for this game. Last year, the four Champions League semi-finals games had over 330 million viewers in total. This is more than double the number of viewers of Super Bowl, for example, and of course gives great exposure to the Betsson brand. Thanks everyone for listening to the presentation. Let's move on to Q&A. We welcome your questions.

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