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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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Alex Scott Chief Product Officer at Tequity

Q&A with Tequity’s new Chief Product Officer Alex Scott

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Following his appointment as Chief Product Officer at iGaming software pioneer Tequity, industry veteran Alex Scott outlines his vision for the company’s expanding product suite. With over 20 years of leadership experience, including driving WPT Global to become the world’s second-largest online poker room, he shares his insights on how Tequity’s approach is redefining both the games players enjoy and the way they are distributed.

You have held senior leadership roles at major operators and suppliers. What convinced you to join Tequity, and what are your main priorities as CPO?

Tequity is a business that I’ve admired since I first became aware of it. In that time I’ve heard so many positive things about how the company is able to move very quickly and decisively, while still delivering ultra high quality products for its partners. When I started interviewing for the position and meeting the people involved, that only reinforced the positive impression I had. It was clear to me that this was a company that is at the forefront of innovation in the iGaming space, creating and delivering content that is fresh and exciting.

My priority as CPO is to further accelerate the development of top-quality products that are highly relevant to today’s players. I’m excited to roll up my sleeves and get stuck in – there are so many possibilities!

Tequity recently secured BMM Testlabs certification for its RNG and the first batch of Originals titles. How does that accelerate your product roadmap?

This certification will open up many more potential customers for Tequity, and therefore many more opportunities for businesses to take advantage of Tequity’s services, like our bespoke Exclusives and our top-performing Originals. Operators fighting for market share are always looking for those added-value elements that can set them apart from the competition and our fully brandable, customisable and feature-packed content offers that key point of difference.

It will also enable the studios using our RGS and Publishing solutions to widen their own distribution and reach many more potential customers as well – just another reason to choose our RGS. We have seen the strong demand for our games and solutions from partners all over the world, and we believe that this appetite will be more than matched by operators in the regulated market space.

Finally, it represents s a step towards a wider regulated market expansion which I am excited to be involved in.

Player preferences are moving decisively toward fast-paced, community-driven experiences. How do Tequity’s game divisions cater to this next generation of player engagement?

One of the things that sets Tequity apart is that the company truly understands what the modern generation of players are looking for. They are discovering online casino in a very different way to past generations, and require simpler, easier to understand, more socially-driven content if you want their full attention. Today’s players expect instant gratification and seamless, mobile-first experiences that fit into their fast-paced lifestyles. They also want gameplay to feel like less of a solitary activity and more of a shared event.

Having spent recent months immersed in casino game development for the crypto generation, I’m really looking forward to contributing to these efforts and having an impact of my own.

You will be joining the Tequity team at iGB Live in London next month. What is the key takeaway you want operators and studios to leave with?

As the newest Tequity signing, I’m looking forward to meeting the rest of the team and many of our partners and customers at iGB Live.

Tequity is an extremely fast and capable company that builds high-quality, interesting products at the cutting-edge of the industry. My hope is that operators and studios leave the event understanding our expertise and capabilities. But I also want them to leave with a sense of the enthusiasm and passion that we have for building great games that stand out from the crowd.

The post Q&A with Tequity’s new Chief Product Officer Alex Scott appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Ariel Reem CEO at Games Valley

Games Valley adds SPRIBE’s Aviator crash game to aggregation platform

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Deal adds the flagship crash title to Games Valley’s operator distribution network via a single integration.

Games Valley has added SPRIBE’s crash game Aviator to its aggregation platform, extending operator access to the supplier’s flagship title.

Under the agreement, Aviator will be distributed through Games Valley’s platform to its network of operators across regulated and emerging markets.

SPRIBE said Aviator reaches more than 77 million monthly active players, processes over 400,000 bets per minute, and accounts for more than 90% of the global crash-game market.

Ariel Reem, CEO at Games Valley, said: “Aviator is one of those rare games that has become a category-defining product. For operators, this is exactly the kind of content that can make an immediate impact. At Games Valley, we’re focused on giving operators access to the games players already know and trust, while helping them maximise performance through a fast, flexible aggregation platform.”

Giorgi Tsutskiridze, CCO at SPRIBE, said: “Games Valley has built a strong reputation as a modern aggregation partner for operators that want access to premium casino content quickly, efficiently and reliably. Through this partnership, we are able to bring Aviator to a wider network of operators through a platform that understands the value of proven, high-performing content in both established and fast-growing markets.”

The post Games Valley adds SPRIBE’s Aviator crash game to aggregation platform appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Microgaming expands Playboy-branded live casino and adds new slot

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Playboy Gems and Desires launches 10 June as the supplier highlights roulette and faster baccarat formats in Microgaming Live.

Microgaming is spotlighting its official Playboy partnership across live casino and slots, as it continues to build a portfolio of Playboy-branded content for operators. The company said its latest slot, Playboy Gems and Desires, launched on 10 June.

In live casino, Microgaming said Playboy Roulette is positioned as the core title within a wider Playboy-branded suite available through Microgaming Live. The supplier said the live range includes multiple table formats presented in a branded studio environment.

Microgaming also pointed to Playboy Speed Baccarat, which it said runs rounds 30% faster than standard baccarat and includes features such as multi-table mode, side bets, statistics and racetrack bets.

Across the live product line-up, the company said the Playboy branding extends to elements including Playboy Bunny presenters, branded tables and live chat, alongside operator-facing marketing options. On slots, Microgaming said Playboy Gems and Desires includes Wild stacks, B-U-N-N-Y-triggered Free Spins, a Jackpot Wheel and a top win potential of up to 5,000x the bet.

A Microgaming spokesperson said: “Playboy is a brand with a unique place in popular culture, and our official partnership gives us the opportunity to build something that feels much broader than a single table or title. What makes this relationship so exciting is the ability to bring that unmistakable sense of style and premium entertainment to life across various formats. Playboy Gems and Desires is the latest chapter in that story, and a strong example of how the Playboy identity can continue to evolve across both slots and live casino.”

The post Microgaming expands Playboy-branded live casino and adds new slot appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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