Betsson

Interim / Quarterly Report • Jul 20, 2023

Betsson AB (publ) interim report January – June 2023

"Another record quarter for Betsson with continued high customer activity and strong financial performance"

• Group revenue was EUR 236.8 (186.3) million, an increase of 27%. Organic increase of 43%.
• Casino revenue increased by 35%. Sportsbook revenue increased by 13% and the sportsbook margin was 8.2% (8.3%).
• EBITDA was EUR 67.6 (39.3) million, an increase of 72%. The EBITDA margin was 28.5% (21.1%).
• Operating income (EBIT) was EUR 54.5 (29.2) million, an increase of 87%. The EBIT margin was 23.0% (15.7%).
• Net income was EUR 46.9 (28.6) million, corresponding to EUR 0.37 (0.21) per share.
• Operating cash flow was EUR 89.2 (37.8) million.
• Net debt was EUR -138.8 (-19.8) million.
• Active customers decreased by 10% to 1,119,803 (1,246,719).
• Acquisition of the Belgian B2C operator betFIRST.

QUARTER APRIL - JUNE 2023 THE PERIOD JANUARY - JUNE 2023

• Group revenue was EUR 458.7 (356.4) million, an increase of 29%. Organic increase of 41%.
• EBITDA was EUR 121.9 (72.7) million, an increase of 68%. The EBITDA margin was 26.6% (20.4%).
• Operating income (EBIT) was EUR 97.5 (52.8) million, an increase of 85%. The EBIT margin was 21.3% (14.8%).
• Net income was EUR 83.5 (49.4) million, corresponding to EUR 0.64 (0.37) per share.
• Operating cash flow was EUR 137.9 (64.6) million.
• The AGM approved dividend to shareholders of EUR 59.7 (50.3) million, corresponding to EUR 0.436 (0.367) per share. The first of two installments was distributed to the shareholders in June.

KEY DATA

MEUR	Q2 2023	Q2 2022	∆	Jan-Jun 2023	Jan-Jun 2022	∆	Jan-Dec 2022
Revenue	236.8	186.3	27%	458.7	356.4	29%	777.2
Gross profit	162.5	118.8	37%	310.0	225.8	37%	504.4
EBITDA	67.6	39.3	72%	121.9	72.7	68%	172.4
EBITDA margin %	28.5	21.1	-	26.6	20.4	-	22.2
Operating income (EBIT)	54.5	29.2	87%	97.5	52.8	85%	131.2
EBIT margin %	23.0	15.7	-	21.3	14.8	-	16.9
Net income	46.9	28.6	64%	83.5	49.4	69%	114.7
Earnings per share (EUR)	0.37	0.21	76%	0.64	0.37	73%	0.87
Operating cash flow	89.2	37.8	136%	137.9	64.6	113%	178.7
Casino revenue	165.1	122.2	35%	317.1	233.2	36%	514.7
Sportsbook gross turnover	1,312.3	991.3	32%	2,641.5	1,938.8	36%	4,413.1
Sportsbook revenue	69.5	61.6	13%	136.7	118.0	16%	250.6
Sportsbook margin after free bets %	8.2	8.3	-	8.1	8.3	-	8.0
Deposits	1,240.6	845.5	47%	2,388.8	1,628.0	47%	3,667.2
Active customers (number of)	1,119,803	1,246,719	-10%

CEO COMMENT

Pontus Lindwall President and CEO Betsson AB

Another record quarter for Betsson with continued high customer activity and strong financial performance

I am pleased to look back at another record quarter for Betsson with continued high customer activity and strong financial performance. During the second quarter of 2023, revenue increased by 27 percent and operating profit (EBIT) by 87 percent, compared to the corresponding quarter last year. New revenue records were set in both B2C and B2B. The EBIT margin increased to 23.0 (15.7) percent.

Betsson's long history of profitable growth is based on diversified revenues, both in terms of products and geographic markets. As before, the business generates strong cash flows, and the robust balance sheet constantly facilitates new growth initiatives. It is the mix of investments in new markets, organically and via acquisitions, that has contributed to the good financial performance over time. The geographical diversification continues to serve Betsson well and revenues increased in all regions during the quarter. In particular, Central and Eastern Europe and Central Asia (CEECA) continued to show high growth.

In June, the leading Belgian sports betting operator betFIRST was acquired and at the same time a new strategic partnership was entered into with the publicly listed French casino operator Groupe Partouche to offer online casino games in some regulated markets, with Belgium being the first country for this collaboration. These strategic initiatives together enable a competitive offering in sports betting and casino for the Belgian market. The investment in Belgium resonates well with Betsson's ambition to deliver long-term profitable growth.

In June, an important sponsorship was entered into with the long-standing Argentinian football club Boca Juniors, previously home to perhaps the greatest player ever in football history, Diego Armando Maradona. The sponsorship, one of the largest ever for Betsson, means that the club's iconic match shirt will feature the Betsson logo during local and international matches until the end of 2024. The collaboration with Boca Juniors strengthens Betsson's brand and rapid expansion in Argentina and throughout Latin America, and we will be following the team's development with excitement together with fans and customers.

We look forward with confidence to the second half of the year, with continued investments into geographic expansion and constant further development of Betsson's offering to futureproof our competitiveness.

Pontus Lindwall President and CEO Betsson AB

SIGNIFICANT EVENTS AND OUTLOOK

SIGNIFICANT EVENTS DURING THE QUARTER

Dividend

In May, the annual general meeting (AGM) decided on dividend to shareholders of EUR 59.7 (50.3) million, corresponding to EUR 0.436 (0.367) per share. The first of two installments was distributed to shareholders in June. The other half of the dividend will be distributed via a new redemption program which concludes in October.

Acquisition and strategic partnership

In June, the Group entered into an agreement to acquire all shares in betFIRST Group, which operates sports betting and casino gaming in Belgium under the betFIRST brand. The value of the transaction amounted to a total of EUR 120 million, of which EUR 3 million is a conditional additional payment attributable to certain financial targets being met. The initial consideration for the acquisition is equivalent to a multiple of 10.0x betFIRST's estimated EBITDA for the financial year 2023. Established in 2011, betFIRST is a leading B2C operator in the locally regulated online gaming market in Belgium, offering sports betting and dice games. betFIRST is a leading brand for sports betting in Belgium with a proven track record of successful customer acquisition and revenue growth. betFIRST holds a license for online sports betting and a license for online dice games in Belgium. In addition to the online business, the company also operates across approximately 450 points of sale in Belgium and also owns a gaming arcade. In the last financial year ending 31 December 2022, betFIRST recorded net gaming revenue of EUR 51.2 million and adjusted EBITDA of EUR 10.0 million. The preliminary purchase price allocation of the acquired assets will be presented in the Q3 report 2023.

A new strategic partnership was entered into with publicly listed French casino operator Groupe Partouche to offer online casino gaming in some regulated markets. Groupe Partouche operates land-based casinos in France and Switzerland and also holds an offline casino license in Belgium, which can be extended to an online casino license. With such a license, combined with the licenses held by betFIRST, a full range of online casino products can be offered to the Belgian market. Provided that the required licenses are granted by the Belgian regulator, the aim is to launch the online casino offering in Belgium in the latter part of 2023.

Sponsorship

In June, Betsson announced the start of an important collaboration with the Argentinian football club Boca Juniors and will become the team's main sponsor until the end of 2024.

Investments

The Group's ownership stake in Colbet, Colombia, was increased from 91 to 98 percent during the quarter.

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

The acquisition of betFIRST was completed on July 5, 2023, according to plan. The entire acquisition was financed with own cash.

TRADING UPDATE

This trading update is an indication of how the third quarter has started, however it is not a revenue forecast for the quarter.

The average daily revenue in the third quarter 2023 up until and including 16 July was 20.2 percent higher than the average daily revenue of the full third quarter 2022. Adjusted for currency effects and acquisitions, the average daily revenue until 16 July was 30.5 percent higher than the average daily revenue of the full third quarter 2022. During this period, the sportsbook margin has been higher than the average margin over time. betFIRST has been included for the entire period 1-16 July 2023.

THE GROUP'S OPERATING ACTIVITIES

Betsson's operational subsidiaries offer online casino, sports betting and other types of gaming. In the following sections, we comment on the development of the operational business as well as the financial developments of the Group.

STRATEGIC DIRECTION FOR GROWTH

Betsson's long-term ambition is to outgrow the market, which should be done in a profitable and sustainable manner with local adaptations. Based on its strengths and thorough market analysis, Betsson has identified the following growth areas: growth in existing markets, expansion into new markets and development of the B2B offering with focus on the proprietary sportsbook.

Betsson sees opportunities to grow in these areas, both organically through in-house development and through acquisitions when the right opportunities are identified. Betsson's financial position allows for flexibility to take advantage of good opportunities that supplement the existing business with new geographical markets, products, and brands.

Betsson shall strengthen its position in existing markets and evaluate new markets by prioritising countries where the Group has the best conditions to offer competitive products profitably. Betsson's broad brand portfolio, as well as its own technology and proprietary platforms, create opportunities to establish a presence quickly and flexibly in new markets. The proprietary sportsbook entails substantial opportunities to create new offerings with economies of scale.

Operations in existing markets have continued to primarily focus on adapting and developing Betsson's offerings to changing player behaviour, regulatory requirements and the competitive landscape.

In the quarter, Betsson decided to withdraw the license applications in the Netherlands for the Group's subsidiaries. The decision was based on significant delays in the licensing process and resource allocation considerations given the attractive current project pipeline for Betsson in other markets. The Group still maintains the possibility of reapplying for a license in the future.

During the quarter, Betsson continued to allocate resources on growth initiatives in Latin America and parts of CEECA, as well as the B2B sportsbook offering. Further, the Belgian gaming operator betFIRST was acquired and a partnership was entered with the French operator Groupe Partouche to launch an online casino offering in Belgium.

PRODUCT AND TECHNOLOGY DEVELOPMENT

Betsson's gaming sites are largely run on the proprietary platform Techsson, a so-called Player Account Management System (PAM), which makes up the core of the offering and user experience. Techsson manages payments, customer information and account management and games. The proprietary platform provides flexibility and enables rapid adaptation to new market conditions or as part of preparing for launches in new jurisdictions and of new brands. Betsson also works continuously to meet authorities' rising demands for data and background information and has developed a tool to automate a large share of these deliverables.

Adaptations and further development of Betsson's tech platform and sportsbook are also being made to support a B2B offering.

Geographical expansion continued to be a strong focus during the quarter, as well as strengthening the product offering. For the sportsbook, more events, sources and sports were integrated, further enriching the total offering. In particular, new content in e-sports and streamed events were added, in response to high customer demand.

Within the Betsson Group, artificial intelligence (AI) and machine learning have been important innovation factors supporting, for example, customer services and the proprietary responsible gambling tool and other predictive tools. Recently, steps have been taken to further enhance the way new and more functionalities are integrated into the sportsbook using AI and machine learning.

During the quarter, development and launch of native apps (apps specifically built to perform on iOS or Android) have continued in several markets, e.g. in Sweden and Malta (MGA-licensed offering).

Work to migrate Betsson's brands to the cloud to optimize the proprietary platform continued during the quarter. The cloud migration provides both improved system capacity and an overall improved customer experience in the form of faster and more responsive websites and mobile apps.

SECOND QUARTER DEVELOPMENTS

CUSTOMER ACTIVITY

Customer deposits in all operational subsidiaries' gaming solutions during the quarter were EUR 1,240.6 (845.5) million, an increase of 46.7%.

By the end of the second quarter, the number of registered customers was 28.1 (25.0) million, an increase of 12.6%.

Active customers during the quarter amounted to 1,119,803 (1,246,719), a decrease of 10.2%.

Customer deposits by quarter

Active customers by quarter

MARKET DEVELOPMENT BY REGIONS

Betsson's long-term ambition is to outgrow the market, both organically and through acquisitions. This should be done in a profitable and sustainable manner with various local adaptations. Betsson operates in locally regulated markets, as well as in POS-regulated markets via the MGA license in Malta. POS, or Point of Supply, regulation refers to markets that are targeted, based on EU and/or international law principles, without being licensed and taxed locally in such markets.

The reported revenue for each region includes both gaming revenue from the B2C business as well as license revenue for system delivery to Betsson's B2B customers.

Increase in customer deposits compared to the same period last year

Nordics

Revenue from the Nordics was EUR 51.7 (51.2) million, an increase of 0.9%.

Finland reported revenue growth compared to the corresponding period last year, mainly driven by the casino product. Denmark reported all-time high revenue in the second quarter, driven by growth in both the sportsbook and casino product.

Sweden and Norway reported decreased revenue compared to the corresponding period last year. The offering in Norway has been modified to comply with the Norwegian Gambling authorities' requirements; among other things, all Norwegian names, words, and associations to Norway have been removed from websites, while the language and currency have been changed to English and euro, respectively.

Western Europe

Revenue from Western Europe was EUR 27.0 (24.8) million, an increase of 8.8%.

The business in Italy continues to develop well and reported growth in revenue compared with the corresponding period last year. The increase in revenue is mainly driven by the casino product.

In Germany, revenue declined compared to the corresponding period last year, mainly driven by the market restrictions that have been implemented in the past years.

In June, the Belgian gaming operator betFIRST was acquired by the Group and a strategic partnership was initiated with the land-based French gaming operator Groupe Partouche. The acquisition and the strategic partnership mean that Betsson, via subsidiaries, can offer a full-scale offering of casino and sports betting products to the locally regulated Belgian market. According to plan, on July 5, the acquisition of betFIRST was completed, hence no revenue from the acquisition has been reported for the second quarter.

CEECA

Revenue from Central & Eastern Europe and Central Asia (CEECA) was EUR 102.6 (61.1) million, an increase of 68.0%.

The region reported an all-time high in revenue in the second quarter, driven by strong underlying activity in both casino and sports betting. Croatia and Greece showed continued positive trends in activity with all-time high in revenue. The growth in both Croatia and Greece was mainly driven by the casino product.

Georgia reported growth both compared to the corresponding period last year and the previous quarter, mainly driven by the casino product. The Baltics continued to develop well during the quarter where all markets reported growth in revenue compared to the corresponding period last year.

Latin America

Revenue from Latin America was EUR 51.4 (45.7) million, an increase of 12.5%.

Argentina and Colombia reported growth both compared to the corresponding period last year and the previous quarter. The growth in Argentina was mainly driven by the casino product while the sportsbook product was the main growth driver in Colombia in the second quarter. Peru reported decreased revenue compared to the corresponding period last year driven by a lower sportsbook margin.

At the end of the second quarter, the Group entered a sponsorship agreement with the classic Argentinian football club Boca Juniors. The sponsorship runs until the end of 2024 and is an important step in building brand recognition in the country and the region.

ROW, Rest of the world

Revenue from RoW was EUR 4.2 (3.5) million, an increase of 18.9%.

The region reported growth both compared to the corresponding period last year and the previous quarter. In June last year Betsson increased its ownership from 25 to 60 percent in the gaming operator Betbonanza in Nigeria. The reported revenue increase for the region compared to the corresponding period last year is mainly explained by the Nigerian operations.

Revenue by region

Nordics (22%)

Latin America (22%)

Western Europe (11%)

ROW (2%)

CEECA (43%)

MARKET DEVELOPMENT BY PRODUCT

Casino

Betsson's casino product includes a wide range of suppliers and diverse content, customised for a growing global portfolio of markets and brands. The aim is to provide relevant content for each individual region through using off-the-shelf games, as well as the Group's exclusive titles.

During the quarter, Betsson's offering expanded with 305 new casino games, 21 of which came with a period of exclusivity for Betsson's brands.

Betsson has strong, regionally customized offerings in live casino on the market and continuously invests in improvements of the customer experience to strengthen the market position in this segment.

The casino product reported all-time highs in gross turnover and revenue in the second quarter. Casino gross turnover in all of Betsson's gaming solutions was EUR 8,354.4 (5,668.4) million, an increase of 47.4% compared to the second quarter last year.

Casino revenue amounted to EUR 165.1 (122.2) million, an increase of 35.1%. Casino represented 70% (66%) of Group revenue.

Mobile casino revenue was EUR 138.0 (96.8) million and accounted for 84% (79%) of total casino revenue.

Sportsbook

Sportsbook gross turnover across all Betsson's gaming solutions, was EUR 1,312.3 (991.3) million, an increase of 32.4% compared to the second quarter of last year.

Sportsbook revenue in the second quarter was EUR 69.5 (61.6) million, an increase of 12.7%. Sportsbook represented 29% (33%) of Group revenue.

The sportsbook margin was 8.2% (8.3%). The eight-quarter rolling average margin was 7.8%.

Mobile sportsbook revenue was EUR 58.5 (48.2) million, representing 85% (78%) of total sportsbook revenue.

Other products

Revenue from other products (poker, bingo and other) amounted to EUR 2.3 (2.5) million, a decrease of 8.9%, representing 1% (1%) of total revenue.

Casino (70%) Sportsbook (29%)

Other (1%)

FINANCIAL DEVELOPMENT

Group revenue

Group revenue was EUR 236.8 (186.3) million, an increase of 27.2%. In constant currencies and adjusted for acquisitions (organic), revenue growth was 42.6%.

Revenue from locally regulated markets where Betsson pays local betting duties increased by 32% and was EUR 85.9 (65.2) million, corresponding to 36.3% (35.0%) of total Group revenue.

License revenue for system delivery to B2B-customers amounted to EUR 65.0 (31.4) million and corresponded to 27% (17%) of Group revenue. The increase is mainly due to enhanced performance in the products delivered by Betsson, within both casino and sportsbook. In the beginning of the fourth quarter last year, Betsson acquired 80% of the shares in KickerTech Malta Ltd. KickerTech is a B2B sportsbook operation and adds new customers, further capabilities in building advanced odds models, trading technology and sportsbook features to the B2B-offering.

Mobile revenue was EUR 196.4 (144.9) million, representing 83% (78%) of total revenue.

Expenses

Cost of services provided was EUR 74.3 (67.5) million in the quarter. In relation to revenue, cost of services decreased, mainly due to decreased affiliate- and partner commission marketing costs, lower cost of payment services and from a mix effect on revenue.

Gross profit was EUR 162.5 (118.8) million, corresponding to a gross profit margin of 68.6% (63.8%).

Operating expenses were EUR 108.0 (89.6) million, of which EUR 3.0 million are one-off costs to advisors related to the acquisition of betFIRST.

Marketing expenses (excluding affiliate- and partner commissions) were EUR 31.9 (30.5) million and corresponded to 19% (20%) of B2C revenue. During the second quarter, the focus of marketing initiatives was on the Latin America region and specifically in new markets such as Argentina.

Personnel expenses were EUR 33.3 (29.8) million. The average number of full-time employees in the Group during the second quarter was 2,098 (1,942) of which 1,197 (1,156) were based in Malta. The increase in personnel expenses come from yearly salary revisions, performance-related compensation, geographic expansion and increased investments in product and technology development. As of October 2022, personnel of the acquired company KickerTech Ltd. are included in the figures.

The Group had 221 (220) full-time consultants engaged by the end of the quarter, mainly within product development. This cost is recognised under other external expenses.

Other external expenses, which primarily include sportsbook-related costs, consultants and software licenses, were EUR 33.2 (25.8) million. The increased costs are driven by sustained increased investments in technology and product development and acquisition-related oneoff costs of EUR 3.0 million related to the acquisition of betFIRST.

Costs related to new market entries in the second quarter amounted to EUR 16.9 million, of which marketing costs constituted EUR 9.3 million and other costs were EUR 7.6 million,

of which the latter mainly consists of foreign currency effects, mainly unrealised, external consultants and personnel expenses.

Capitalised development costs were EUR 7.2 (6.0) million. Amortisation of capitalised development costs was EUR 6.2 (5.8) million. Total amortisation and depreciation for the quarter was EUR 13.1 (10.1) million. The increase is mainly driven by a one-time adjustment of depreciation on a gaming license for one market, amounting to EUR 1.4 million in the quarter and increased depreciation from the acquisition of KickerTech Malta Ltd. that was acquired in the fourth quarter last year.

Other operating income/-expenses was EUR -3.6 (0.6) million. The increased cost is driven by foreign currency effects, mainly unrealised, on intercompany balances.

Expenses as a percentage of revenue

Operating income and net income

Operating income (EBIT) increased by 86.7% to EUR 54.5 (29.2) million. The EBIT margin was 23.0% (15.7%). Organically, EBIT increased by 140.0% to EUR 70.0 million.

Operating income (EBIT) by quarter

Net financial items were EUR -2.4 (2.2) million and are primarily related to interest expenses and results of associated companies.

Net income was EUR 46.9 (28.6) million, corresponding to EUR 0.37 (0.21) per share.

The reported corporate tax for the second quarter was EUR -5.2 (-2.8) million, corresponding to 10.0% (9.0%) of profit before taxes. The effective tax rate may fluctuate between quarters depending on the tax base in the countries where Betsson has subsidiaries. For example, corporate taxes in certain countries are based on dividend distribution which may result in a difference between the effective and statutory tax rate.

Betsson AB (publ), Interim report April-June 2023 9

Earnings for the period

Operating income (EBIT) for the first six months 2023 amounted to EUR 97.5 (52.8) million. Net income amounted to EUR 83.5 (49.4) million, corresponding to EUR 0.64 (0.37) per share.

Financial position

Cash and cash equivalents amounted to EUR 244.1 (130.7) million at the end of the period. Customer liabilities, including reserves for accumulated jackpots, were EUR 50.6 (48.9) million. Gaming regulations require the Group to reserve a certain share of cash to cover player liabilities and accumulated jackpots. Current receivables related to payment providers for unsettled customer deposits were EUR 47.2 (62.7) million. The balance varies as a result of activity and depending on when deposits are made. The Group's net financial debt amounted to EUR -138.8 (-19.8) million at the end of the period.

Cash flow

Cash flow from operating activities during the second quarter was EUR 89.2 (37.8) million including a positive impact of EUR 28.1 (1.1) million related to changes in working capital. The positive effect on working capital is mainly driven by decreased accounts receivables and decreased receivables on payment providers. Cash flow from investing activities was EUR -15.7 (-14.8) million and consists mainly of investments in own development and paid earn-out for KickerTech Malta Ltd. Cash flow from financing activities was EUR -34.1 (-4.4), mainly driven by dividends paid to shareholders.

External financing

The external financing at the end of the period constituted of bonds amounting to EUR 98.9 million. The bonds have a tenor of three years and a floating interest rate of 3 months EURIBOR plus 650 basis points and final maturity in 2025.

Equity

Equity in the Group was EUR 707.0 (604.0) million at the end of the period, corresponding to EUR 5.20 (4.42) per share.

RISKS

The risk areas that Betsson has identified as most significant, and that can significantly affect the Group's operations, earnings, and position, are strategic risks, operational risks, compliance risks and financial risks. These risk areas are described in more detail in the latest annual report.

REGULATORY UPDATE

Betsson has gaming licenses in 22 jurisdictions, operates in additional countries, and is thus affected by gaming laws that broadly differ between different jurisdictions. For an overall description of the gaming legislation in the jurisdictions where the Group operates, please refer to the latest annual report. Below is a summary of the latest implemented or planned changes in gaming legislation in markets relevant to the Group.

Nordics

In Norway, in the pending matter regarding the cease-and-desist order of the Norwegian gambling authority (NGA) against BML Group Ltd, the company has implemented all of the changes previously agreed with the NGA, including the currency change to EUR. BML Group informed the NGA of these changes and stated that it, in its view, had complied with the cease-and-desist order, and there was no longer a basis for the imposition of coercive fines. BML requested that the NGA make a new overall assessment of BML Group's gambling offer. The NGA has, pending this assessment, granted a further suspension of the cease-and desistorder until mid-September.

In Finland, there is broad political support for removing the gambling monopoly - the new government stated in its program published in May that a licensing model for online casino games and sports betting shall be introduced before 2026.

In May, the Finnish National Police Board (NPB) issued a prohibition order on marketing gambling services to the Group's operational subsidiary BML Group Ltd. The company removed all content mentioned in the order, and filed an appeal against the order, including a request for an injunction from the court. On 2 June 2023, the local court issued an interim

Operating cash flow in the quarter

injunction decision in favour of the company, prohibiting the enforcement of the order until the court decides on the appeal. Thus, for the time being, the NPB must refrain from adding BML Group Ltd to its blacklist. A court decision on the merits of the dispute is not expected before the end of this year.

In Sweden, the Supreme Administrative Court ruled in May that fines issued by the Swedish Gambling Authority (SGA) should be based on gross gaming revenue (GGR) and not on the annual gaming turnover of the relevant operator. From now on, any sanctions issued by SGA will have to be based on the operator's GGR. It remains unclear whether the SGA will also review fines issued in the previous years, but operators previously fined on an annual gaming turnover basis will regardless be interested in having their fine amounts reviewed.

Western Europe

In Germany, the Group subsidiary Zecure Gaming Ltd obtained a virtual slots license in May by the local regulator.

Belgium has notified the European Commission of several proposals to amend the Belgian Gaming Act: (i) A prohibition to jointly offer online licences of a different nature (i.e., A+, B+, and F1+) on the same domain name and the associated URLs; (ii) A new minimum age limit of 21 years for access to casinos, gaming arcades, and betting shops as well as for all online games of chance; (iii) An advertising ban for games of chance with exceptions possible only if they are laid down in a Royal decree. Further, a Royal Decree restricting gambling advertising went into force on 1 July, prohibiting general advertising on TV, radio, cinema, websites, and social platforms. The proposal includes a transitional period for existing contracts that meet the requirements until 1 October 2023. Advertising around sports (in stadiums) will be prohibited from 1 January 2025. Professional club sponsorships will be heavily restricted from 2025.

CEECA

In Estonia, the parliament adopted changes to the Gambling Tax Act in June, introducing new tax rates for gambling products. The current tax rate of 5% on GGR will be lifted to 6% on GGR from 1 January 2024 and 7% on GGR from 1 January 2026.

Latin America

In Brazil, the Ministry of Finance had set a deadline to 17 July 2023 to publish the provisional law to regulate sports betting. However, the recently announced suspension of all congressional activity to focus only on the vote on tax reform and a new fiscal framework will likely cause yet another delay in regulating sports betting in Brazil.

In Peru, the congress approved the bill in May that modifies Law 31557 regulating remote games and sports betting. The new bill brings about the following modifications: (i) Included as taxpayers now are also the legal entities incorporated abroad that operate remote gaming toward Peru, meaning there is no need for operators to establish themselves permanently in Peru; (ii) The list of allowed domains is expanded, in addition to "bet.pe" also domains ".bet", ".com", ".pe" or ".com.pe" are now allowed. On June 29, 2023, the new law was officially published. The law would be enforceable 120 days after the technical regulation is officially published.

SUSTAINABILITY

Sustainability is an integrated part of Betsson's business strategy and a prerequisite for generating shareholder value and at the same time taking long-term responsibility for customers, employees, and the communities in which the Group operates. Betsson's sustainability framework establishes five focus areas: responsible gaming, business compliance, employee impact, social impact and climate impact. Betsson is a participant of the UN Global Compact and a Nasdaq ESG transparency partner. For a more detailed description of these areas, see the latest annual and sustainability report.

During the quarter, Betsson published its annual and sustainability report for 2022. The report describes ambitions, goals and activities within Betsson's most important sustainability areas and is available on the company's website https://www.betssonab.com/en/sustainability.

At Betsson's annual general meeting in May it was decided that an ESG criterion should be included in the new long-term incentive plan; the goal is to obtain an ESG rating by MSCI (Morgan Stanley Capital International) at least at the level of AA.

Responsible gaming

Betsson has a responsibility to support customers in controlling their gaming and to identify and help customers at risk of problem gaming. Betsson's ambition is to be a role model in the industry and to create conditions for players to always have a healthy relationship to gaming. Betsson offers its customers a wide range of tools for responsible gaming, for example deposit limits, self-exclusion, personal time limits for gaming, self-evaluation tests and access to well-trained and professional customer service staff 24 hours a day, 7 days a week. Betsson's customer service is continuously evaluated by independent assessors on the quality of management. In this context, Betsson has received a number of awards over the years for its efforts in the field. As an example, during the quarter, Betsson won the award for customer satisfaction at the Swedish Gambling Award (SGA) 2023. SGA celebrates responsibility and highlights the many positive initiatives that are taken in the gambling industry. At the SiGMA Americas Awards, Betsson's Managing Partner in Brazil received an award for his work with responsible gambling in the country.

During the second quarter, 89.3% of active customers had some kind of tools for responsible gaming activated. This measurement includes any of the available tools such as reality checks, self-assessment tests, deposit and time limits etc. 27.3% (17.5%) of active customers used some type of control tools in Q2, such as deposit limits, time out and/or self-exclusion. 23.3% (14.1%) of active customers used deposit limits during the quarter. These numbers vary between markets and depend on the geographic customer mix during the quarter since the usage of control tools can be different between markets depending on local regulations and customer preferences.

Betsson uses a number of different ways, some manual and others automated, to detect customers who exhibit risky behaviour according to certain established parameters, among others through the company's proprietary responsible gaming prediction tool. If a concern is raised about risky behaviour, regardless of method, customers are then assessed individually, based on the customers' profile and gaming activity. 14,967 (14,943) customers were manually analysed and checked during the quarter. Betsson has a wide spectrum of follow-up actions to deal with risky player behaviour. These efforts range from providing the player with more information about safer gaming or asking the customer for feedback to a set of questions, to encouraging the customer to set deposit limits or to take a timeout. During the quarter, 1.5% (2.1%) of customers self-excluded for a period less than 6 months. 2.5% (2.6%) of customers self-excluded for a period longer than 6 months. Betsson can also exclude customers from continued gaming.

To increase transparency and raise awareness about risky gaming in Sweden and how proactive contacts can change player behaviour, Betsson has started to report KPIs for risky gaming for the Swedish market.

Business compliance

Betsson has extensive controls and processes in place around anti-money laundering and combating financing of terrorism which were developed over many years, and which are constantly advanced in line with the latest regulatory and industry standards and trends. The EU's new legislative package on AML and CFT is about to be adopted and will have a significant impact on all industries across the EU. In this respect, Betsson - through the European Gaming and Betting Association, EGBA - has been actively involved in promoting the interests of the online gaming industry with the aim to achieve a viable AML framework.

Last year, Betsson improved its global whistleblowing channel by implementing a new whistleblowing framework. In Q2 this year, further updates were made to comply with the latest EU Whistleblowing Directive.

Employee Impact

During the quarter, Betsson completed a framework for diversity and inclusion that specifies goals and KPIs for the area.

For the second year in a row, Betsson organized two Diversity & Inclusion conferences, one in London and one in Malta. The purpose of the conferences is to drive development within the field and discuss how to further boost diversity and inclusion within the online gaming industry.

Customers were analysed for responsible gaming

In June, Betsson won a prize at the Swedish Gambling Awards for its work in driving the issue of diversity within the online gaming industry. Betsson was also awarded Women in Gaming's Best Employee Wellbeing Award for its work on health and wellbeing in the workplace.

Social Impact

Betsson's social impact framework has three main focus areas: sports, diversity and environment, but Betsson also adapts to world events, for example by providing humanitarian aid for Ukraine. During the quarter, Betsson's office in Stockholm donated to Operation Aid, an organization that focuses on humanitarian aid to the worst affected areas. In Q2, Betsson announced a new collaboration with Fundación Sergio Urrego in Colombia, an organization that works for mental health, inclusion and diversity. Among other things, Betsson will support the organization's Línea Salvavidas ("Lifeguard Line"), a free telephone service manned by professional psychologists.

The part of Malta where Betsson has its offices and where most of the employees live has been named the European Region of Sports. The focus is on sport as a medium for increased physical and mental well-being, and for more integration and inclusion in society. This is fully in line with Betsson's framework for social impact, and Betsson has therefore decided to sponsor the region's work for the remainder of the year.

Climate Impact

Betsson operates in an industry with relatively low CO2 emissions, but nevertheless has a responsibility to help counteract climate change. Betsson has established a climate roadmap which identifies the main emission sources and how these shall be reduced. In the second quarter, work according to the climate roadmap continued.

Betsson has set climate targets according to science-based targets (SBT) of reducing greenhouse gases by at least 55 percent for Scope 1 and 2 and by at least 15 percent for Scope 3 by 2030.

Betsson's operations have been climate neutral for several years, which means that Betsson offsets its emissions, including estimated emissions by customers when playing on Betsson brands. Offsetting occurs through investments in climate positive projects.

OTHER INFORMATION

EMPLOYEES

At the end of the second quarter, the Group employed 2,119 (1,957) employees representing 60 different nationalities. In addition, 221 (210) full-time consultants were engaged, mainly within product development.

Betsson's corporate values - One Betsson, Passion and Fair Play - set the tone for how employees should treat each other, customers, suppliers and other stakeholders, and for how employees should approach their work and assignments. Betsson's ambition is to be the best workplace in the industry. Diversity and equal opportunities are key elements and are included as a natural part of an innovative corporate culture. Skilled and engaged employees are a prerequisite to achieve the vision of providing the best customer experiences.

The Group has, over time, retained people in leading positions, enabling consistent delivery according to its long-term strategy. To further inspire and support employees, leadership programs, career development and other initiatives are offered and promoted to them.

Betsson compensates for all emissions and adds an additional 10% to be climate positive

OWNERSHIP STRUCTURE AND SHARES OUTSTANDING

The Company's Series B shares are listed on Nasdaq Stockholm Mid Cap list (BETS B). At the end of the period, the Company had 25,300 (25,343) shareholders.

The total number of shares and votes in Betsson amounts to 142,729,838 and 285,928,838 respectively, divided into 15,911,000 A shares with ten votes each, 121,571,405 B shares with one vote each and 5,247,433 C shares with one vote each. The C shares may not be represented at general meetings of shareholders. Betsson's treasury shares amounted to 5,247,433 C shares and 519 710 B-shares at the end of the period.

PARENT COMPANY

The Parent Company Betsson AB's (publ) business consists of investing in and administering shareholdings in companies, which, through partners or by themselves, offer games and sports betting to end users online. The Company provides and sells internal services related to financing, communication, accounting and administration to certain Group companies.

Revenue for the second quarter was EUR 0.7 (0.9) million, and net income was EUR -4.2 (-1.6) million.

Cash and cash equivalents in the Parent Company amounted to EUR 116.5 (64.3) million.

DECLARATION BY THE BOARD

The Board and the CEO in Betsson AB hereby confirm that this interim report gives a fair view of the operations, balance sheet and income statement of the Parent Company and the Group and that it describes the material risks faced by the Company and the Group.

This interim report has not been subject to review by the Company's auditor.

Stockholm, 20 July 2023

Johan Lundberg Pontus Lindwall Chairman of the board President and CEO

Eva Leach Louise Nylén Board Member Board member

Peter Hamberg Tristan Sjöberg Board member Board member

Eva de Falck Board member

CONSOLIDATED INCOME STATEMENT

MEUR	Q2 2023	Q2 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Revenue	236.8	186.3	458.7	356.4	777.2
Cost of services provided	-74.3	-67.5	-148.7	-130.6	-272.8
Gross profit	162.5	118.8	310.0	225.8	504.4
Marketing expenses	-31.9	-30.5	-67.8	-57.9	-129.0
Personnel expenses	-33.3	-29.8	-66.6	-55.8	-119.0
Other external expenses	-33.2	-25.8	-62.6	-51.2	-106.4
Capitalised development costs	7.2	6.0	14.5	12.1	24.4
Amortisation and depreciation	-13.1	-10.1	-24.4	-19.9	-41.2
Other operating income/expenses	-3.6	0.6	-5.7	-0.3	-2.0
Operating expenses	-108.0 0.0	-89.6 0.0	-212.5 0.0	-173.0 0.0	-373.2 0.0
Operating income	54.5	29.2	97.5	52.8	131.2
Financial income and expenses	-2.4	2.2	-4.5	0.9	-6.6
Income before tax	52.1	31.4	93.0	53.7	124.6
Tax	-5.2	-2.8	-9.5	-4.3	-9.9
Net income	46.9	28.6	83.5	49.4	114.7
Net income attributable to:
Equity holders of the Parent Company	50.2	29.2	87.9	50.4	119.6
Non-controlling interests	-3.3	-0.7	-4.3	-1.0	-4.9

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MEUR	Q2 2023	Q2 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Net income	46.9	28.6	83.5	49.4	114.7
Other comprehensive income
Revenue/expenses recognised directly in equity:
Hedge of net investments in foreign currency incl. deferred
tax	0.0	1.4	0.0	2.4	3.0
Exchange differences in translating foreign operations	1.0	2.9	4.4	5.2	5.6
Other comprehensive income of the period (after tax)	1.0	4.3	4.4	7.6	8.6
Total comprehensive income for the period	47.9	32.9	87.9	57.0	123.3
Total comprehensive income attributable to:
Equity holders of the Parent Company	51.2	33.6	92.2	58.0	128.2
Non-controlling interests	-3.3	-0.7	-4.3	-1.0	-4.9

CONSOLIDATED BALANCE SHEET

MEUR	6/30/2023	6/30/2022	12/31/2022
Assets
Intangible fixed assets	600.2	581.0	596.2
Property, plant and equipment	8.8	8.3	8.1
Right-of-use assets	15.3	18.8	18.1
Financial assets	18.1	24.2	19.6
Deferred tax receivables	9.4	3.4	8.1
Total non-current assets	651.8	635.7	650.1
Current receivables	184.4	167.1	200.3
Cash and cash equivalents	244.1	130.7	168.3
Total current assets	428.5	297.8	368.6
Total assets	1,080.4	933.5	1,018.7
Equity and liabilities
Equity	707.0	604.0	647.8
Deferred tax liabilities	4.9	2.6	3.2
Bond	98.9	88.7	98.6
Lease liabilities	7.4	11.3	10.3
Total non-current liabilities	111.2	102.6	112.1
Bond	0.0	28.0	0.0
Lease liabilities	6.4	6.1	6.1
Other current liabilities	255.7	192.8	252.7
Total current liabilities	262.1	226.9	258.8
Total equity and liabilities	1,080.4	933.5	1,018.7

CONSOLIDATED CASH FLOW STATEMENT

MEUR	Q2 2023	Q2 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Profit/loss before tax	52.1	31.4	93.0	53.7	124.6
Adjustments for non-cash items	17.9	9.8	32.0	20.0	46.6
Taxes paid	-9.0	-4.5	-11.8	-7.3	-9.8
Cash flow from operating activities
before changes in working capital	61.1	36.7	113.2	66.4	161.4
Changes in working capital	28.1	1.1	24.7	-1.8	17.3
Cash flow from operating activities	89.2	37.8	137.9	64.6	178.7
Investments in intangibles/tangibles	-11.5	-9.6	-21.6	-17.9	-35.5
Acquisition of shares in subsidiaries	-0.2	0.0	-0.3	0.0	-6.6
Paid earnout	-4.0	-4.3	-4.0	-5.4	-8.2
Acquisition of shares in associates	0.0	-0.9	0.0	-0.9	-0.9
Cash flow from investing activities	-15.7	-14.8	-25.9	-24.2	-51.2
Bond issue	0.0	88.6	0.0	88.6	98.6
Bond redemption	0.0	-65.8	0.0	-65.8	-94.2
Lease payments	-2.2	-1.8	-3.1	-3.0	-6.4
Loan Associates	-2.8	0.0	-3.8	0.0	-4.3
Share redemption programme	-29.0	-25.4	-29.0	-25.4	-50.3
Warrant premiums received	0.0	0.0	0.0	0.0	1.9
Cash flow from financing activities	-34.1	-4.4	-35.9	-5.6	-54.7
Changes to cash and cash equivalents	39.4	18.6	76.1	34.8	72.8
Cash and cash equivalents at beginning of period	204.9	111.8	168.3	95.6	95.6
Exchange differences	-0.2	0.3	-0.3	0.3	-0.1
Cash and cash equivalents at end of period	244.1	130.7	244.1	130.7	168.3

CHANGES IN GROUP EQUITY

MEUR	6/30/2023	6/30/2022	12/31/2022
Equity opening balance attributable to the equity holders of the Parent Company	649.3	571.8	575.6
Total comprehensive income for the period	92.2	57.0	123.3
Total change excluding owner transactions	92.2	57.0	123.3
Share redemption programme	-29.0	-25.4	-50.3
Warrant premium received	0.0	0.0	1.9
Share options - value of employee services	0.4	0.1	0.3
Equity share, associated companies	0.0	3.6	-1.5
Equity at end of period attributable to the Equity holders of the Parent Company	712.9	607.1	649.3
Non-controlling interests	-5.9	-3.1	-1.5
Total equity at end of period	707.0	604.0	647.8

PARENT COMPANY, INCOME STATEMENT

MEUR	Q2 2023	Q2 2022	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Revenue	0.7	0.9	1.4	1.5	2.9
Operating expenses	-2.4	-3.0	-4.1	-5.1	-11.9
Operating income	-1.7	-2.1	-2.7	-3.7	-9.0
Financial income and expenses	-2.4	0.5	-2.2	0.5	123.5
Income before tax	-4.2	-1.6	-4.9	-3.1	114.5
Income tax	0.0	0.0	0.0	0.0	4.1
Net income	-4.2	-1.6	-4.9	-3.1	118.6

PARENT COMPANY, BALANCE SHEET

MEUR	6/30/2023	6/30/2022	12/31/2022
Assets
Property, plant and equipment	0.3	0.2	0.2
Financial assets	603.1	599.5	603.5
Total non-current assets	603.4	599.7	603.7
Current receivables	55.6	105.9	194.3
Cash and cash equivalents	116.5	64.3	58.1
Total current assets	172.1	170.2	252.4
Total Assets	775.5	769.9	856.1
Restricted equity	34.9	34.9	34.9
Unrestricted equity	638.5	574.3	672.2
Total equity	673.4	609.2	707.1
Bond	98.9	88.7	98.6
Total non-current liabilities	98.9	88.7	98.6
Bond	0.0	28.0	0.0
Other current liabilities	3.2	44.0	50.4
Total current liabilities	3.2	72.0	50.4
Total equity and liabilities	775.5	769.9	856.1

QUARTERLY DATA

CONSOLIDATED INCOME STATEMENT, IN SUMMARY

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Revenue	236.8	221.9	220.6	200.3	186.3	170.2	157.5	170.0
Cost of services provided	-74.3	-74.4	-75.8	-66.5	-67.5	-63.1	-59.8	-60.1
Gross profit	162.5	147.5	144.8	133.8	118.8	107.1	97.7	109.9
Marketing expenses	-31.9	-35.9	-37.0	-34.1	-30.5	-27.3	-25.7	-27.5
Personnel expenses	-33.3	-33.3	-32.4	-30.8	-29.8	-26.0	-24.0	-23.6
Other external expenses	-33.2	-29.4	-28.8	-26.5	-25.9	-25.4	-23.2	-23.6
Capitalised development costs	7.2	7.3	6.1	6.2	6.0	6.1	6.2	6.0
Amortisation and depreciation	-13.1	-11.3	-11.1	-10.2	-10.1	-9.8	-9.6	-9.3
Other operating income/expenses	-3.6	-2.1	-1.6	-0.0	0.6	-1.0	-0.5	-0.2
Operating expenses	-108.0	-104.5	-104.8	-95.4	-89.6	-83.5	-76.9	-78.1
Operating income	54.5	43.0	40.0	38.4	29.2	23.6	20.8	31.7
Financial items, net	-2.4	-2.1	-4.2	-3.3	2.2	-1.3	-1.7	-1.3
Income before tax	52.1	40.9	35.8	35.1	31.4	22.3	19.1	30.4
Tax	-5.2	-4.3	-3.1	-2.5	-2.8	-1.4	-0.4	-2.2
Net income	46.9	36.6	32.7	32.6	28.6	20.9	18.7	28.1

CONSOLIDATED BALANCE SHEET, IN SUMMARY

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Non-current assets	651.8	651.2	650.1	641.2	635.7	627.6	625.6	592.1
Current assets	428.5	422.0	368.6	342.4	297.8	287.0	271.6	295.3
Total assets	1,080.4	1,073.2	1,018.7	983.6	933.5	914.6	897.2	887.5
Equity	707.0	688.7	647.8	646.4	604.0	591.8	568.8	548.2
Provisions and non-current liabilities	111.2	111.2	112.1	112.9	102.6	17.3	15.7	17.9
Current liabilities	262.1	273.3	258.8	224.7	226.9	305.5	312.7	321.4
Total equity and liabilities	1,080.4	1,073.2	1,018.7	983.6	933.5	914.6	897.2	887.5

CONSOLIDATED CASH FLOW STATEMENT, IN SUMMARY

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Operating cash flow	89.2	48.8	75.5	38.5	37.8	26.9	13.4	41.7
Cash flow from investing activities	-15.7	-10.2	-17.9	-9.1	-14.8	-9.4	-29.3	-15.0
Cash flow from financing activities	-34.1	-1.9	-31.3	-17.7	-4.4	-1.2	-15.1	11.2
Total cash flow	39.4	36.7	26.3	11.7	18.6	16.3	-31.0	37.9

KEY RATIOS

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Key financial ratios
Gross Margin (% of revenue)	68.6	66.5	65.6	66.8	63.8	62.9	62.0	64.6
EBITDA-margin (% of revenue)	28.5	24.5	23.2	24.3	21.1	19.6	19.3	24.1
EBIT-margin (% of revenue)	23.0	19.4	18.1	19.2	15.7	13.9	13.2	18.7
Profit margin (% of revenue)	22.0	18.4	16.2	17.5	16.9	13.1	12.1	17.9
Marketing expenses (% of revenue)	13.5	16.2	16.8	17.0	16.4	16.0	16.3	16.2
Basic earnings per share (EUR)	0.37	0.28	0.26	0.24	0.21	0.16	0.14	0.21
Diluted earnings per share (EUR)	0.37	0.28	0.26	0.24	0.21	0.16	0.14	0.21
Equity per share (EUR)	5.20	5.03	4.74	4.75	4.42	4.33	4.16	4.01
Executed dividend/redemption per share (EUR)	0.218	0.00	0.184	0.00	0.184	0.00	0.00	0.00
Equity/assets ratio (%)	65	64	64	66	65	65	63	62
Return on equity (%, 12 months)	23	20	18	17	17	18	19	22
Return on total capital (%, 12 months)	17	15	14	13	12	13	13	15
Return on capital employed (%, 12 months)	22	20	18	17	15	16	18	20
Net debt (MEUR)	-139	-105	-66	-55	-20	-17	3	-6
Net debt / EBITDA (Multiple, 12 months)	-0.6	-0.5	-0.4	-0.4	-0.1	-0.1	0.0	-0.1
Shares
Average share price (SEK)	109.40	92.37	81.96	64.98	61.66	53.21	56.50	76.59
Share price at end of period (SEK)	114.80	98.60	84.77	65.05	64.73	57.25	54.60	72.80
Highest share price (SEK)	122.80	100.18	86.57	70.65	68.15	58.20	70.90	91.90
Lowest share price (SEK)	93.78	82.73	63.65	54.20	54.08	47.80	47.50	68.40
Number of shareholders at end of period	25,300	25,308	24,715	25,148	25,343	25,805	26,003	25,282
Number of shares outstanding at end of period	137.0	137.0	137.0	137.0	136.8	136.8	136.8	136.8
Total number of shares at end of period (million)	142.7	142.7	142.7	142.7	142.7	142.7	142.7	142.7
Personnel
Average number of employees	2,098	1,967	2,043	1,938	1,942	1,957	1,958	1,933
Number of employees at end of period	2,119	2,112	2,023	1,948	1,957	1,926	1,955	1,970

CUSTOMERS

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Registered customers (000's) Active customers (000's)	28,121 1,120	27,461 1,116	26,816 1,425	25,629 1,056	24,967 1,247	24,200 1,256	23,307 1,162	21,569 986

CUSTOMER DEPOSITS

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Customer deposits	591.4	578.3	618.2	560.5	534.6	514.1	512.0	486.7
Customer deposits, all gaming solutions	1,240.6	1,148.2	1,096.0	943.2	845.5	782.5	784.6	758.5

CASINO DATA

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Gross turnover, all gaming solutions Casino
(MEUR)	8,354.4	7,739.7	7,090.8	6,280.3	5,668.4	5,124.3	5,265.0	5,489.3
Revenue (MEUR)	165.1	152.0	146.1	135.4	122.2	111.0	115.1	125.1

SPORTSBOOK DATA

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Gross turnover, all gaming solutions (MEUR)	1,312.3	1,329.2	1,416.2	1,058.1	991.3	947.5	1,024.5	821.0
of which gross turnover live betting (MEUR)	921.9	920.7	893.1	733.0	648.4	620.6	653.2	587.5
Sportbook margin after free bets (%)	8.2	8.0	7.3	8.3	8.3	8.3	6.0	7.8
Revenue (MEUR)	69.5	67.2	70.7	61.9	61.6	56.4	40.2	42.7

REVENUE BY PRODUCT

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Revenue (MEUR)
Casino	165.1	152.0	146.1	135.4	122.2	111.0	115.1	125.1
Sportsbook	69.5	67.2	70.7	61.9	61.6	56.5	40.2	42.7
Other products	2.3	2.7	3.8	3.0	2.5	2.7	2.3	2.2
Total	236.8	221.9	220.6	200.3	186.3	170.2	157.5	170.0
	2023 Q2	2023 Q1	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3
Share of total revenue (%)
Casino	70	69	66	68	66	65	73	74
Sportsbook	29	30	32	31	33	33	26	25
Other products	1	1	2	1	1	2	1	1
	2023 Q2	2023 Q1	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3
Growth, compared with previous quarter (%)
Casino	9	4	8	11	10	-4	-8	4
Sportsbook	3	-5	14	0	9	41	-6	-15
Other products	-15	-30	25	23	-9	20	5	12
Total	7	1	10	8	9	8	-7	-2
	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Growth, compared with same period previous year (%)
Casino Poker	350	370	270	80	10	-50	-80	-10
Sportsbook	13	19	76	45	22	45	-10	26
Other products	-9	-2	68	41	29	29	17	27
Total	27	30	40	18	8	8	-8	5

REVENUE BY REGION

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Casino (MEUR)
Nordics	37.1	37.6	39.1	39.9	38.6	39.4	40.8	41.9
Latin America	22.5	18.6	17.6	14.6	13.7	11.3	11.2	10.0
Western Europe	25.7	25.5	24.4	23.5	22.8	20.7	19.0	33.1
Central & Eastern Europe and Central Asia	76.7	67.4	62.3	54.9	44.4	36.6	41.0	37.2
RoW	3.1	2.9	2.8	2.5	2.7	2.9	3.1	2.9
Total	165.1	152.0	146.1	135.4	122.2	111.0	115.1	125.1
	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Sportsbook (MEUR)
Nordics	13.8	13.5	12.6	13.0	11.7	13.7	10.1	10.9
Latin America	28.6	26.3	34.3	23.9	31.8	25.2	14.6	14.3
Western Europe	1.2	1.5	1.2	1.3	1.9	1.3	1.3	2.1
Central & Eastern Europe and Central Asia	25.0	24.9	21.6	22.6	15.7	15.7	14.0	15.1
RoW	0.9	1.0	1.0	1.1	0.6	0.6	0.3	0.3
Total	69.5	67.2	70.7	61.9	61.6	56.4	40.2	42.7
	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Total, for all products, per region (MEUR)
Nordics	51.7	51.9	53.1	53.8	51.2	54.1	51.9	53.4
Latin America	51.4	45.2	52.3	38.8	45.7	36.8	26.0	24.3
Western Europe	27.0	27.2	25.8	25.0	24.8	22.2	20.4	35.5
Central & Eastern Europe and Central Asia	102.6	93.5	85.3	78.8	61.1	53.4	55.9	53.2
RoW	4.2	4.2	4.0	3.8	3.5	3.7	3.4	3.3
Total	236.8	221.9	220.6	200.3	186.3	170.2	157.6	169.8
	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Share per region (%) Nordics	22	23	24	27	27	32	33	31
Latin America	22	21	24	19	25	22	16	14
Western Europe	11	12	12	13	13	13	13	21
Central & Eastern Europe and Central Asia	43	42	38	39	33	31	36	31
RoW	2	2	2	2	2	2	2	2
	2023 Q2	2023 Q1	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3
Growth, compared with previous quarter (%)
Nordics	-0	-2	-1	5	-5	4	-3	-2
Latin America	14	-14	35	-15	24	42	6	-0
Western Europe	-1	5	3	1	12	9	-43	-13
Central & Eastern Europe and Central Asia	10	10	8	29	14	-4	5	8
RoW	1	4	6	8	-4	7	3	-10
	2023 Q2	2023 Q1	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3
Growth, compared with same period previous year (%)
Nordics Latin America	1 13	-4 23	2 102	1 59	-6 86	12 174	-7	-1
	9	22	26	-30	-39	-44	- -55	- -24
Western Europe Central & Eastern Europe and Central Asia	68	75	53	48	23	-0	13	24
RoW	19	13	17	15	-5	19	-84	-81

SPECIFICATION OF COST OF SERVICES PROVIDED

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Licence fees	20.5	19.3	20.1	18.9	18.2	17.0	16.6	17.3
Betting duties	22.0	20.0	18.1	15.7	14.1	14.0	13.2	12.7
Affiliates and partners commission	7.4	7.9	7.7	7.4	9.3	9.9	8.5	10.4
Other cost of services provided	24.5	27.2	29.8	24.5	25.8	22.2	21.5	19.8
Total	74.3	74.4	75.8	66.5	67.5	63.1	59.8	60.1

SPECIFICATION OF AMORTISATION AND DEPRECIATION

	2023	2023	2022	2022	2022	2022	2021	2021
MEUR	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Depreciation property, plant, and equipment	0.9	0.9	0.9	0.9	0.9	0.8	1.1	1.0
Depreciation right-of-use assets	1.5	1.5	1.6	1.5	1.4	1.4	1.5	1.5
Amortisation intangible fixed assets	10.7	8.9	8.6	7.8	7.8	7.6	7.0	6.8
(whereof amortisation of capitalised
development costs)	6.2	6.0	6.1	6.0	5.8	5.6	5.6	5.5
Total	13.1	11.3	11.1	10.2	10.1	9.8	9.6	9.3

ORGANIC CALCULATION (EFFECTS FROM ACQUISITIONS AND CURRENCY)

	2023	2023	2022	2022	2022	2022	2021	2021
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Reported revenues	236.8	221.9	220.6	200.3	186.3	170.2	157.5	170.0
- Revenue from aquisitions	-1.2	-1.5	-1.6	-6.9	-8.4	-7.3	-5.4	0.0
- Currency effects	30.0	14.5	13.4	35.7	17.0	17.3	6.9	4.5
Organic revenues	265.6	234.9	232.4	229.1	194.9	180.2	159.0	174.5
Organic growth (YoY)	43%	38%	48%	35%	13%	14%	-7%	8%
Reported growth (YoY)	27%	30%	40%	18%	8%	8%	-8%	5%
Reported operating income (EBIT)	54.5	43.0	40.0	38.4	29.2	23.6	20.8	31.7
- Result from aquisitions	0.8	1.2	1.0	-0.4	-0.8	-1.4	-0.3	0.0
- Currency effects	14.7	13.6	14.4	35.2	17.2	16.0	7.6	4.3
Organic operating income	70.0	57.8	55.4	73.1	45.6	38.2	28.0	36.0
Organic growth (YoY)	140%	145%	166%	131%	21%	40%	-9%	14%
Reported growth (YoY)	87%	82%	92%	21%	-23%	-13%	-33%	0%

OTHER NOTES

CURRENCY EXCHANGE RATES

The exchange rates below have a direct or indirect effect on the figures in the report.

Income Statement (average rate during the period April - June)

	2023	2022	∆
SEK/EUR	0.0883	0.0955	-7.5%
GEL/EUR	0.3563	0.2997	+18.9%
NOK/EUR	0.0885	0.1002	-11.7%
TRY/EUR	0.0467	0.0618	-24.4%
PEN/EUR	0.2465	0.2423	+1.7%

Balance Sheet (closing rate)

	6/30/2023	6/30/2022	∆
SEK/EUR	0.0848	0.0936	-9.4%
GEL/EUR	0.3498	0.3245	+7.8%

TRANSACTIONS WITH RELATED PARTIES

No significant transactions took place between Betsson and related parties that affected Betsson's financial position and performance in the period. The extent and nature of transactions with related parties in the period are consistent with previous year's transactions with related parties, as described in the 2022 annual report.

ACCOUNTING POLICIES

Betsson complies with IFRS standards and interpretations (IFRIC) as adopted by the EU. This Report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company's financial statements have been prepared in accordance with RFR 2.

The accounting policies applied are consistent with those presented in the Annual Report for 2022. Detailed information about the Group's accounting and valuation principles can be found in the Annual Report for 2022 (Note 2), which is available on www.betssonab.com or at the Company's head office.

DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES

This financial report refers to key figures that Betsson and others use in the evaluation of Betsson. These so-called Alternative Performance Measures (APMs) are not defined in IFRS. The measures provide management and investors with important information to analyze trends in the company's and group´s business operations. These APMs are intended to supplement, not replace, financial measures presented in accordance with IFRS.

Active customers: Number of customers who have played on any of Betsson's gaming sites in the past three months, without any deposit requirement.

All gaming solutions: In this term KPIs attributable to Betsson are consolidated with KPI's attributable to B2B associates.

Average equity: Equity in the beginning of the quarter plus equity at the end of the quarter, divided by two.

Average capital employed: Total assets less non-interest-bearing debts at beginning and end of quarter, divided by two.

Average number of employees: Number of employees expressed as full-time equivalent, FTE (full year's work).

Average number of shares outstanding: Weighted average number of shares outstanding during the period.

B2B: Business-to-Business

Betting duties: Includes consumption tax attributable to local licenses to operate gaming. Fixed fees for gaming licenses are not included.

Deposits: Customers' deposits to gaming accounts.

Dividend per share: Actual/proposed dividend. Includes share redemption programmes.

Earnings per share after dilution: Net income, attributable to owners of the parent company, divided by the weighted average number of shares outstanding adjusted for additional number of shares for options with dilutive effect.

Earnings per share: Net income attributable to owners of the parent company, in relation to the average number of shares outstanding.

EBITDA: Income before financial items, taxes, depreciation and amortisation.

EBITDA margin: EBITDA as a percentage of revenue.

Equity per share: Equity, attributable to owners of the parent company, as a percentage of the number of shares outstanding at the end of the period.

Equity/assets ratio: Equity at the end of the period as a percentage of the balance sheet total at the end of the period.

Gross profit: Revenue less commission to partners and affiliates, betting duties, licensing fees to games suppliers, payments to payment suppliers and so called fraud (unapproved payments).

Mobile revenue: Revenue from customers using mobile devices.

NDC: New Depositing Customer

Net debt: Financial liabilities (bond, bank loans and leasing debts) plus customer liabilities less Cash and cash equivalents and 90% of receivables from payment providers.

Number of employees: Number of employees on last month's payroll.

Number of shareholders: Number of direct shareholders and shareholders listed through a nominee shareholder registered in the shareholder register kept by Euroclear Sweden AB.

Number of shares: The total number of A, B and C shares at the end of the period.

Number of shares outstanding: Total number of shares (excluding C-shares and repurchased shares) at the end of the period.

Organic: Excluding effects from currency fluctuations, in relation to the comparable period, and contribution from acquired entities over the past 12 months

Operating income (EBIT): Income before financial items and taxes.

Operating margin (EBIT): Operating income as a percentage of revenue.

Operational expenses: Expenses for marketing, personnel, other external expenses, amortisation and depreciation, capitalised development costs and other operating income/expenses.

Profit margin: Income before taxes as a percentage of revenue.

Return on equity: Income after tax in relation to average equity.

Return on total capital: Income after financial items plus financial expenses, in relation to average total capital.

Return on total capital employed: Income after financial items plus financial expenses, in relation to average capital employed.

Revenue: Revenue from gaming business is reported after payment/payout of players' winnings, less deductions for jackpot contributions, loyalty programs and bonuses and other operating income. License fees from B2B partners consists of invoiced revenue for providing technical platforms for external gaming operators.

FINANCIAL CALENDAR

Q3 2023 26 October 2023 Q4 2023 and Year-end report 15 February 2024

PRESENTATION OF THE INTERIM REPORT

At 09:00 CEST on 20 July 2023, Betsson invites analysts, investors and media to participate in the presentation of the results for the second quarter. The results will be presented by CEO Pontus Lindwall and CFO Martin Öhman. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via the webcast or telephone conference. Link with information on how to participate in the webcast and telephone conference: https://financialhearings.com/event/46179.

CONTACTS

Pontus Lindwall, President and CEO Betsson AB +46 8 506 403 00 pontus.lindwall@betssonab.com

Martin Öhman, CFO Betsson AB +46 8 506 403 00 martin.ohman@betssonab.com

Roland Glasfors, VP Communications & IR Betsson AB +46 760 024 863 roland.glasfors@betssonab.com

ABOUT BETSSON

Betsson AB (publ) is a holding company that invests in and manages fast-growing companies within online gaming. The company is one of the largest in online gaming in Europe and has the ambition to outgrow the market, organically and through acquisitions. This should be done in a profitable and sustainable manner, and with local adaptations. Betsson AB is listed on Nasdaq Stockholm (BETS B).

Betsson's operational subsidiaries' vision is to deliver the best customer experience in the industry. They offer casino, sports betting and other games via gaming licenses in 22 jurisdictions in Europe, Africa, North- and South America. The business model is to offer gaming under multiple brands, including Betsson, Betsafe and NordicBet. The brands are operated on a proprietary platform, which is the core of the offer and the customer experience.

Being a responsible operator in relation to customers, suppliers, authorities, investors and other stakeholders is a cornerstone of Betsson's business. Betsson is a member of the European Gaming and Betting Association (EGBA), ESSA (Sports Betting Integrity) and G4 (The Global Gambling Guidance Group). Learn more about the Group on www.betssonab.com

In this interim report the name Betsson or the Group is used to describe the entire business run by the operational subsidiaries.