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Betsson Ab Interim Report April – June 2020

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Group revenue was SEK 1,532.8 (1,277.7) million, an increase of 20% with an organic increase of 12%.
Casino revenue increased by 40%. Sportsbook revenue decreased by 34% and the sportsbook margin was 6.9% (7.8%).
Operating income (EBIT) was SEK 217.7 (196.9) million.
The EBIT margin was 14.2% (15.4%).
Operating cash flow was 343.9 (390.6) million.
SIGNIFICANT EVENTS AND OUTLOOK

Acquisition of GiG’s B2C vertical completed.
New market entries into Colorado (USA) and Kenya.
The AGM in June resolved on dividend paid to shareholders in July of SEK 2.88 per share, corresponding to SEK 393.6 million.
The daily average revenue in the third quarter 2020 until 16 July was 35% (23% organic) higher than the average daily revenue of the full third quarter 2019.

CEO COMMENT

“I am proud that Betsson has delivered all-time high revenues under the most challenging conditions.”

“The second quarter was strong and followed the positive trend from the start of the year despite market challenges during this extraordinary period. The global pandemic had immediate effect on the Company from March onwards. We responded quickly and decisively to make changes in the offer, and I am particularly pleased to see the strong performance in casino. Sports betting revenues continued to be impacted in the second quarter by the pandemic as expected, however benefited from the progressive return of football and other sporting events at the end of the quarter. Our business has remained financially robust and resilient to this impact, being both diversified and flexible.

Our key focus areas remain the health and safety of both our employees and the societies in which we operate. Early on, we proactively took actions to enable both a safe and effective working environment for the whole Group and to ensure delivery of products and services to customers with uninterrupted quality.

From March to date, we have seen many changes in habits of how people work, interact, shop and enjoy entertainment, many enabled by advancements in technology and the use of digital devices. We believe the ongoing transition from offline to online has been further accelerated as a consequence of the global lockdowns. This will benefit the strategic direction of our business both short and long term.

In the quarter, we continued executing our strategic priorities, pushing through projects in accordance with the strategic plan. Betsson successfully completed the acquisition of the B2C operation from GiG and remotely onboarded approximately 60 new colleagues. We signed an agreement with Dostal Alley Casino in Colorado to enter the high-potential US market. Initially, we will start with B2C sports betting in the state of Colorado, with the ambition to sell our proprietary sportsbook to B2B customers in the future. In this quarter, we have also taken the first steps into Kenya by partnering with local partners. After the quarter, we have taken further steps to strengthen our position in South America where Betsson has expanded its presence in the only regulated market by acquiring 70% of the Colombian based operator Colbet. This deal will give us access to the Colombian market for online sport betting and casino.

The majority of our employees have been working from home and in the true `One Betsson’ spirit, we have all continued striving towards creating the best user experiences. This has been delivered through the full dedication of the teams, enabled by the quality of both our technical infrastructure and digital content. I am enormously proud of and thankful to all our people for their continued hard work and commitment to keeping the business momentum.

During this pandemic, governments have been modelling a range of scenarios of potential impact, several governments took immediate temporary actions on our industry such as either suspending gambling both offline and online or implementing restrictions on marketing. In the beginning of the third quarter, when most countries had removed Corona-related restrictions, Sweden sadly enough implemented restrictions on online casino, without empirical evidence. This measure will unfortunately push even more consumers to play outside of the Swedish regulation.

The immediate outlook is naturally uncertain, however Betsson is in good shape and we are in it for the long term. Our proprietary technology is a strategic advantage, our diversification in markets, verticals and brands makes us resilient to market fluctuations and our financials are rock solid. This makes me optimistic about the prospects for Betsson.”

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ELA Games releases Flames Fruits Frenzy Hold and Win slot

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New title adds a Hold & Win bonus to the studio’s retro fruit-themed “Flames Fruits Frenzy” line.

ELA Games has released a new slot title, Flames Fruits Frenzy Hold and Win, expanding its Flames Fruits Frenzy series with a Hold & Win bonus feature.

The game uses classic fruit-machine iconography, including cherries, lemons, oranges, grapes, and watermelons, presented with updated high-definition visual effects, according to the company.

ELA Games positioned the release as a seasonal summer-themed update and said it is aimed at players who prefer traditional fruit-slot formats paired with modern mechanics.

The company did not disclose target markets, operator rollout partners, RTP, volatility, maximum win, or a specific release date beyond announcing the launch in the statement.

The post ELA Games releases Flames Fruits Frenzy Hold and Win slot appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Games Global and Posh Monkey Studios debut brand-new reel expansion feature in Fishin’ Madness™ QUADGROWS™

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Games Global has cast its line into the popular fishing genre with the launch of Fishin’ Madness™ QUADGROWS™, developed by exclusive partner Posh Monkey Studios, introducing an all-new evolving reel mechanic that continuously unlocks new ways to win.

Leveraging the enduring appeal of the classic genre, Fishin’ Madness™ QUADGROWS™ features the innovative QUADGROWS™ feature, where every spin contributes toward greater potential.

Beginning on a 5×3 reel-set, the game gradually expands to seven rows, where each progression level unlocks additional paylines, larger Fish Instant Prizes and enhanced Collect Multipliers, rewarding players as they venture deeper beneath the waves.

The Fisherman Collect mechanic remains at the heart of the experience, awarding all visible Fish Instant Prizes when the Fisherman lands on reel five. As QUADGROWS™ unlocks additional rows, new Collect Multipliers become active, increasing the value of every successful catch.

Three or more Scatters trigger eight Free Spins, where larger multipliers create even bigger payout opportunities, while five Scatters award the game’s maximum 10,000x prize.

Completing the feature set is Posh Monkey Studios’ proprietary Posh Spins™, an optional boost that increases the chance of triggering the bonus round.

Combining one of the most popular game themes with an evolving reel mechanic, Fishin’ Madness™ QUADGROWS™ adds a new layer of progression to the classic collect-style experience.

 

Connor Blinman, Co-Founder of Posh Monkey Studios, said: “Fishing games continue to resonate with players, but standing out in such an established genre means delivering something genuinely different.

“The QUADGROWS™ mechanic creates a real sense of progression throughout the player journey, with every milestone unlocking bigger opportunities and adding another layer of excitement to the experience.”

 

Dave Reynolds, Director of Games Strategy and Partner Management at Games Global, added: “Posh Monkey Studios has taken a proven formula and introduced an engaging progression system that gives players a reason to keep coming back.

“Fishin’ Madness™ QUADGROWS™ is another example of how Games Global and its exclusive studios continue to evolve popular mechanics through creative gameplay innovation. We’re excited about the roadmap ahead for Posh Monkey Studios’ and the fresh ideas they’ll be bringing to the table.”

The post Games Global and Posh Monkey Studios debut brand-new reel expansion feature in Fishin’ Madness™ QUADGROWS™ appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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ZEAL acquires SevenCanyon and enters the highly attractive UK prize draw market

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ZEAL Network SE has signed a share purchase agreement to acquire the remaining 96.5 percent of the shares in SevenCanyon Limited, in which ZEAL already holds a 3.5 percent stake. With this acquisition, the market leader for online lotteries in Germany is entering the UK market, gaining immediate access to Europe’s largest market for digital prize draw offerings.

“SevenCanyon is one of the most successful prize draw operators in the UK – we have known them for years. With the acquisition, we hit the ground running in a highly attractive and growing market. We also accelerate the implementation of our strategy to selectively diversify our business model through new products and new markets”, says Dr. Stefan Tweraser, CEO of ZEAL Network SE.

SevenCanyon operates several established UK prize draw platforms, including 7days Performance, Redline Competitions and UK Carp Competitions. This market segment comprises digital prize draws and offerings with non-cash prizes such as houses, cars, and lifestyle products. In the most recent financial year 2026 (04/25–03/26), SevenCanyon generated an operating profit (EBITDA) of more than GBP 10 million.

The transaction opens potential for further scaling of the UK business through ZEAL’s capabilities in acquisition marketing, monetisation, customer retention, data analytics, regulatory professionalism, and platform operations. Furthermore, ZEAL expects the UK prize draw market to continue to move towards more formalised rules, which will favour operators like ZEAL with strong compliance capabilities and regulated market experience.

“SevenCanyon is a highly profitable company with a proven business model. The purchase price will mainly be financed through a new loan agreement. This preserves our financial flexibility to continue our growth-oriented and shareholder-friendly capital allocation in the future”, says Andrea Behrendt, CFO of ZEAL Network SE.

Purchase price and financial impact for 2026

The transaction comprises a cash purchase price for the remaining 96.5 percent of the shares of approximately GBP 33.8 million (subject to post-completion adjustments, including an adjustment for vehicle inventory in the single-digit millions of GBP range), as well as an earn-out payment of up to GBP 4.8 million, to be paid over a period of six months after completion.

The acquisition financing is supported by a EUR 40 million term loan with a duration of seven years, arranged by Deutsche Bank.

The Management Board expects SevenCanyon to make a meaningful contribution to ZEAL’s revenue and EBITDA following consolidation. ZEAL will assess the necessary adjustments to its revenue guidance after the IFRS presentation of SevenCanyon’s revenue streams has been finalised.

On EBITDA, ZEAL confirms the range of EUR 70–75 million under the assumption of a normal jackpot environment in Germany. The updated forecast reflects anticipated non-recurring expenses in the mid-single-digit millions of euros in connection with the transaction.

For the first full financial year following completion of the transaction, ZEAL expects it to have a positive impact on EBITDA in the high-single-digit millions of euros.

The post ZEAL acquires SevenCanyon and enters the highly attractive UK prize draw market appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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