Betsson AB

Welcome to Betson Q3 Report 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Pontus Lindwall and CFO Martin Omen. Please go ahead.

Thank you very much. Good morning and welcome to Betsson's presentation of the third quarter of 2026. I'm Pontus Lindvall, president and CEO of Betsson, and with me today is also our CFO, Martin Amann. The high level of customer activity continued during the third quarter, supported by the FIFA World Cup and the start of the major European football leagues. Customer deposits and total gaming turnover increased, and the number of active customers rose by 40% to a new record. Group revenue also reached a new all-time high for a single quarter, up 10% year over year. This is particularly positive given that the sportsbook margin was considerably lower than in the second quarter due to player-friendly results in the European Football Leagues and Cups. Growth during the quarter was instead driven by the casino product with casino revenue also at new record level. This performance demonstrates the strength of our diversified business model with a broad geographical presence, several strong brands and competitive offerings in both sports betting and casino that complement each other. The strongest growth once again came from Latin America, where we grow by more than 50% to new record levels, largely due to the successful execution of marketing activities in connection with the FIFA World Cup. Our long term investments in products, brands and locally adapted marketing continue to strengthen our positions in the region. At the beginning of August, the acquisition of Rhino Entertainment Group was completed. Rhino was subsequently consolidated into the group and made a positive contribution to revenue and earnings during the quarter. The acquisition strengthens our geographical and commercial diversification and provides additional opportunities to generate profitable growth over time. Operating income or EBIT amounted to 46 million euros, an increase compared with the previous quarter, marking the second quarter in a row with sequential growth in EBIT. The EBIT margin also improved quarter on quarter, despite the considerably lower sportsbook margin than in the second quarter. At the end of the quarter, our flagship brand Betson was launched in Belgium through a rebranding from BetFirst. The rebranding strengthens Betsons as one of the industry-leading global brands and reflects our ambition to drive greater consistency and scalability across the business. During the quarter, new match kits were revealed for our two main jersey sponsorship partners in Europe, Inter and Club Bruges. Last week, these two clubs met in a thrilling Betsson Derby in Champions League with plenty of goals scored and club Bruges walking away with three points. In general, the third quarter was full of exciting news on the sponsorship front. In September, the group round was played in Davis Cup with Betsson as one of the sponsors. The Davis Cup finals will take place in Italy in November. And some other news worth mentioning. Inter's women qualified for the Women's Champions League for the first time ever. There was also another Betsson derby in Argentina, as Racine Club and Boca Juniors went head to head in Argentine Cup, both featuring Betsson at the front of their match jerseys. During the third quarter, the online slot game Gates of Inter was released. This is a casino game developed exclusively for Betsson based on the sponsorship with Inter. Bespoke content is a way to strengthen differentiation and to capitalize on our sponsorship assets. We have previously released exclusive online slot games based on our sponsorships with Boca Juniors and Atletico Nacional. Betsson's gaming sites are largely operated on a proprietary platform that makes up the core of the offering and user experience. Our platform manages payments, customer information and account management, as well as the games we offer. During the quarter, several new onboarding and payment solutions were integrated across some of our most important markets. For the sportsbook, several new functions were introduced, such as new betting opportunities during extra time in football matches, as well as team and player pages for the main matches in Europe. During the quarter, almost 500 new casino games were released, 40 of which came with some kind of exclusivity. We also integrated and launched new slot game suppliers in several markets. Another project was the migration of BetFirst in Belgium to our own platform. As mentioned before, the offering in Belgium was consequently relaunched under the Betsson brand in the quarter. And now a brief update on our sportsbook. Just like most major international operators, we have invested and developed our own proprietary sportsbook over many years. This has been the right strategic decision and it has paid off. Today, Sportsbook revenue accounts for about 25 to 30% of group revenue, which provides revenue diversification. In recent years, our Sportsbook has been further developed, utilizing the very latest frameworks and versions of the technologies used to develop and operate this product in a cloud environment. So far in 2026, we have offered bets across more than 50 sports and categories. Football is by far the largest sport in our sportsbook and this is where we have the broadest and deepest offering. Consistent benchmarking against industry peers shows that we are among the absolute market leaders in the number of betting markets offered, unique bet types, features and bet builder functionality. The World Cup was a great success for us. We served more than 800,000 customers and we took more than 20 million bets during the tournament. Further, the uptime in our sportsbook was 100.0% during the World Cup. That means full uptime. In September, we launched Betsson Foundation, a registered public benefit foundation that brings together and supports the group, charitable community and sports related initiatives under one organization. This is primarily a continuation of what we have already been doing. For many years, Betsson Group has contributed to a wide range of organizations and local communities across its markets and office locations, from employee-led fundraising and grassroots projects to community and CSR initiatives developed through our partnerships with leading football clubs and athletes. The launch of the Betsson Foundation marks the next step in Betsson's longstanding commitment to create positive impact. The foundation will serve as the central organization for coordinating and scaling Betsson's group social impact activities, working closely with employees, partners and local organization across Betsson's markets. And now I'll hand over to Martin for a closer look at the financials.

Thanks Pontus and hello everyone. The third quarter was a solid quarter with all-time high revenue and increased operating income compared to the previous quarter. The acquisition of Ryan Entertainment was finalized in the quarter and consolidated as from August and contributes with two-month results to the quarterly figures. Many KPIs are trending the right way with a lot of all-time highs following increased activity subsequent to the FIFA World Cup this summer. I will start this section of the presentation by focusing on some KPIs, and after that go into more details of the reported financial numbers. Customer deposits in all gaming solutions, including both B2B and B2C, are up 6% compared to the same period last year. The number of active customers is the highest number ever, with an increase of 40% compared to last year, and now sums up to close to 1.9 million customers in the quarter. The gross turnover in Sportbook across all bets and gaming solutions, including both B2B and B2C customers, was up by 8% compared to the same period last year and amounted to close to 1.4 billion euro. Sportbook margin was 8.1%, which is lower than the 8.8% margin in the third quarter last year and also lower than the two-year rolling average margin of 9%. Sportbook revenue increased by 1% compared to last year and amounted to 72 million. The casino turnover increased by 7% year-on-year and casino revenue increased by 14%, a new all-time high. The difference in growth numbers between turnover and revenue is explained by a shift in mix between B2B and B2C. Casino revenue represented 77% of the group's total revenue in the quarter and sport book jump 22%. Reported revenue for the quarter amounted to 327 million euro, an increase of 10% and the highest revenue ever for a single quarter. The acquisition of Ryan Entertainment was consolidated as of August. Adjusted for the acquisition and FX impact, the organic growth year on year was 6%. Revenue from the B2C business has grown by 28% or €61 million year-on-year, whilst the B2B business showed declining revenue year-on-year by 39% or €30 million, explained by decreased revenue from one of the group's B2B customers. B2B revenue is also slightly down quarter-on-quarter, mainly explained by a lower support margin in the third quarter compared to the second quarter this year. Revenue from the B2B business corresponds to 14% of the total revenue and B2C revenue to 86%. Revenue from locally regulated markets increased by 35% compared to last year and now constitute 78% of total revenue compared to 64% last year. Splitting revenue by region, we see growth compared to previous year in all regions, apart from the Nordics and the Central and Eastern Europe and Central Asia region, the SICA region, which both are down compared to last year. In the Nordic region, revenue decreased by 10% compared to the corresponding period last year. The decline is driven by decreased revenue across both Sportbook and the casino product, and in both Sweden and Denmark. However, the revenue from the region increased quarter on quarter, and the third quarter shows the highest revenue levels so far this year, driven by the casino product. The Nordic region represented 10% of the group's total revenue in the third quarter. Revenue from Western Europe increased by 14% year on year, or by 8 million euro, and reported the highest revenue ever for the region in a single quarter. The Italian market reported all-time high revenue, and also reaching new record levels in both deposits and turnover. The growth compared to corresponding period last year is mainly driven by the casino products. France reported increased revenue compared to the corresponding period last year, but declined compared to the previous quarter due to lower support margin. Revenue from Belgium decreased compared to the corresponding period last year and compared to previous quarter, explained by a lower export margin and lower activity in the casino products. The Western Europe region represented 20% of the total revenue in the quarter. Revenue from the Sika region decreased by 17% or by 20 million euro. Revenue was negatively impacted in the quarter by lower license revenue for system delivery to B2B customers in the region, explained by a lower activity in both Sportbook and the casino product. However, the B2C segment in the region continued to perform well, where Croatia, Georgia, Poland, Latvia, Lithuania and Estonia all reported increased revenue compared with the corresponding period last year. driven by the casino product. The SICA region represented 30% of the group's total revenue. Revenue in the Latin America region increased by 40 million, or by 52%, compared to the same period last year, which was the highest revenue ever for the region, driven by strong underlying activity in both the sport book and in the casino product, with new record levels across sport book revenue, casino revenue, casino turnover, and deposits. Argentina, Peru and Colombia all reported strong revenue growth in the third quarter, driven by solid performance across both the casino product and the Sportbook product. The Latin American region represented 36% of the group's total revenue and kept its position as the group's largest region. The region rest of the world increased by 106% in the third quarter following the acquisition of Ryan Entertainment in August, with Canada being the main driver of the region's growth in the quarter. The region now represents 4% of total revenue. This waterfall graph breaks down the different components in the profit and loss statements to display the development in operating income. Revenue is up year on year, but not as much as cost of sales, which has increased by 39 million compared to last year. The increase is to a large extent explained by change in revenue mix between B2C and B2B in the quarter, where we in this quarter see yet a step down in the B2B revenue as percentage of total revenue. Another impacting factor is increased revenue from locally regulated markets and following that increased gaming taxes by some 28 million euro. Increased cost of services provided is, apart from game and taxes, also explained by higher payment provider fees following increased B2C revenue. Year on year, gross profit decreased by 9 million euro and amounted to 181 million, which corresponds to a gross profit margin of 56% compared to 64% last year. Marketing spend increased by 7 million euro compared to last year and corresponds to 15% of total B2C revenue and to some 20% when including affiliate marketing costs as well. The increased marketing expenses are driven, as Pontus mentioned, by increased marketing activities in the Latin America region. Personal expenses is more or less flat compared to last year, although increased number of employees and maintain focus on investments in product and platform development. Depreciation and amortization costs increased by some 1.5 million year on year as a result of increased capitalized development costs and increased amortization costs following acquisitions and rebranding of some local brands to Betsson. Other items are slightly up year on year, where other external expenses increased due to increased costs for cloud technologies and software licenses. The increase is counteracted by increased capitalized development costs following more initiatives in product and technology development. Operating income amounts to 46 million euro, a decrease of 31% compared to last year, but an increase of 9% compared to previous quarter. The EBIT margin was 14.1% compared to 13.6% last quarter and 22.6% last year. Operating cash flow amounts to 55 million compared to 65 million euro in the same period last year. The deviation year on year is mainly explained by a lower operating income this year, which is somewhat contracted by positive impact on changes in working capital in this quarter. Cash flow from investing activities sums up to 75 million euro, where some 59 million relates to the acquisition of Ryan Entertainment and remaining 16 million to investments in own product and technology development. Cash flow from financing activities impacted the cash flow by 4 million, explained by dividend paid to non-controlling interest and lease payments. Betsson has as end of September a net cash position of 98 million euro and an equity ratio of 61%. Now Pontus back to you to take us through the remaining part of the presentation.