Continued growth during the quarter with an EBIT increase of 59 percent

QUARTER OCTOBER – DECEMBER 2020

• Group revenue was SEK 1,762.5 (1,289.5) million, an increase of 37% with an organic increase of 36%.
• Casino revenue increased by 33%. Sportsbook revenue increased by 47% and the sportsbook margin was 7.3% (6.8%).
• Operating income (EBIT) was SEK 317.8 (200.5) million, an increase of 59%, the EBIT margin was 18.0% (15.5%).
• EBIT adjusted for one-off costs for provisions of losses on payment providers of SEK 44.4 million was SEK 362.2 million,
  equivalent to a margin of 20.6 percent.
• Operating cash flow was SEK 223.9 (237.8 ) million.
• Active customers increased by 44% to 989,969 (686,499).

FULL YEAR 2020

• Group revenue was SEK 6,389.6 (5,173.0) million, an increase of 24% with an organic increase of 20%.
• Operating income (EBIT) was SEK 1,125.2 (865.0) million, an increase of 30%. The EBIT margin was 17.6% (16.7%).
• Net income was SEK 990.8 (787.1) million, corresponding to SEK 7.32 (5.69) per share.
• Operating cash flow was SEK 1,384.4 (1,150.3) million, an increase of 20% compared to the same period last year.
• The Board of Directors proposes to the AGM that SEK 502.9 (393.6) million, which corresponds to SEK 3.68 (2.88) per share,
  is distributed to shareholders.

CEO COMMENT

“ATH revenues in the fourth quarter with growth in all regions“

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“Betsson ended 2020 with yet another strong quarter. Under the extraordinary circumstances that still prevail, online gaming continue to demonstrate its resilience to market fluctuations and Betsson demonstrates good profitability. During the fourth quarter, revenues increased by 37 percent compared to the previous year, with growth in all regions, and the operating profit increased by 59 percent. The increase is driven by both casino and sportsbook with a sportsbook margin that was slightly higher compared with the third quarter this year. We are pleased by the continued strong development in the Nordics, especially in Denmark and Sweden, at large driven by the “pay and play” brand Jalla Casino.

There are several reasons for Betsson’s success. The transition to digital entertainment has been further accelerated during the pandemic, which has benefited us, but in the long run Betsson’s underlying strengths are crucial in creating growth and shareholder value. Our long experience and the strong financial position mean that we can continue to implement our strategy with a focus on growth despite current challenges.

During the first nine months of 2020 Betsson made several acquisitions, which together with licenses obtained in other countries, entailed expansion with new brands to new markets while we continued to develop products and functions in existing markets. During the fourth quarter, Betsson continued on this offensive path. We obtained a license in Argentina and launched the Betsafe brand in Kenya. In December, Betsson obtained a license in Colorado, USA and preparations are now underway to launch our highly competitive Sportsbook there in 2021. There is great interest in our Sportsbook and our ambitions are high to develop the B2B offering as a sportsbook supplier. Our first B2B sportsbook customer ibet was intended to launch in time for the Euro 2020 but had to postpone due to the pandemic. ibet has now had a “soft launch” in the European market and we continue to evaluate additional business opportunities.

The pandemic still holds us all in a tight grip and Betsson’s focus is, as always, on safety and health, for our employees and for society in general.

We still face challenges, but we leave 2020 behind and continue with determination to benefit from our strengths to create a strong global and diversified product portfolio of strong brands and local expertise. The strong financial position enables investments in technology and existing product portfolio. And we are confident in our ambition with a scalable and flexible proprietary technology as well as highly dedicated and talented teams”.

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