Betsson AB: Interim Report, 1 January – 30 September 2010

The third quarter revenues increased by 22 percent

STOCKHOLM--()--Regulatory News:

Betsson AB (STO:BETSB):

Second quarter

-- Revenues increased by 22 percent to SEK 385.1 (316.7) million, the largest ever reported quarterly revenue

-- Operating income increased to SEK 80.7 (79.4) million

-- Operating income was negatively impacted by a net cost of SEK 13.1 (2.3) million referring to the currency revaluation of balance sheet items

-- The net effect from capitalizations and amortizations of capitalized development costs amounted to a cost of SEK 2.8 (revenue 4.2) million

-- Excluding the above effects in currency revaluation and net of capitalization and amortization the operating income totalled SEK 96.6 (77.5) million, corresponding to an increase of 25 percent

-- Income before tax amounted to SEK 80.7 (79.6) million

-- Net income totalled SEK 76.3 (75.6) million, corresponding to SEK 1.94 (1.93) per share

-- Cash amounted to SEK 377.3 (396.0) million and the Group continues to have no interest-bearing liabilities

-- Gross Turnover in Sportsbook amounted to SEK 1 215.7 (634.9) million, corresponding to an increase of 91 percent

-- Gross Turnover in Live betting in Sportsbook amounted to SEK 733.7 (194.2) million - an increase of 278 percent

-- Due to legal requirements, Betsson must shut down the Betsson shop at Götgatan in Stockholm

Interim period

-- Revenues increased by 22 percent to SEK 1 118.9 (916.8) million

-- Operating income increased to SEK 252.9 (223.4) million

-- Operating income has been charged with a cost of SEK 16.5 (revenue 0.3) million referring to the currency revaluation of balance sheet items

-- The net effect from capitalizations and amortizations of capitalized development costs amounted to a cost of SEK 2.8 (revenue 17.2) million

-- Excluding the above effects in currency revaluation and net of capitalization and amortization the operating income totalled SEK 272.2 (205.9) million, corresponding to an increase of 32 percent

-- Income before tax amounted to SEK 253.8 (224.6) million, an increase of 13 percent

-- Net income totalled SEK 240.5 (213.3) million, corresponding to SEK 6.13 (5.44) per share

Key Performance Indicators

    Q3   Q3       Jan-Sep   Jan-Sep   Full year
2010 2009 2010 2009 2009
Totals
Revenues 385.1 316.7 1 118.9 916.8 1 299.7
Gross Profit 301.6 253.0 890.6 732.8 1 045.0
Operating Income 80.7 79.4 252.9 223.4 316.9
Cash 377.3 396.0 377.3 396.0 529.1
Active Customers (thousands) 255.7 220.9 255.7 220.9 288.7
Registered Customers (thousands) 2 833.9 1 916.7 2 833.9 1 916.7 2 117.8
Customer Deposits 913.6 823.6 2 789.6 2 342.3 3 258.0
Sportsbook
Gross Turnover Sportsbook 1 215.7 634.9 3 461.6 1 816.2 2 571.5
- of which Live Betting 60.0% 30.6% 52.5% 31.3% 31.2%
Margin after free bets, Sportsbook 8.6% 7.2% 7.9% 7.6% 8.9%
Gross Profit Sportsbook 89.5 41.4 239.5 124.6 206.6
Gross Profit margin in Sportsbook 7,4% 6,5% 6,9% 6,9% 8,0%
1) Margin after allocated costs

Fast growing Live betting in Sportsbook

”The activity level in the different gaming solutions has never been greater. Live betting in Sportsbook is particularly strong, with strong growth on all key markets which is joyous. Large short term operational receivables together with large currency fluctuations during the major part of the quarter increased currency exposure in the short term. This contributed to high cost for currency revaluations. This exposure is now significantly lower.” states Pontus Lindwall, Betsson's President and CEO.

Presentation of interim report

Today, Tuesday 26 October, at 09.00 CET, Betsson's CEO Pontus Lindwall will present the Interim Report through webcast at http://www.betssonab.com or http://storm.zoomvisionmamato.com/player/betsson/objects/7tz0dw29 or through phone at +46 (0)8 505 598 53 (Sweden) or +44 (0)20 3043 2436 (UK). The presentation will be in English and will be followed by a question and answer session.

BETSSON AB’S OPERATIONS INVOLVE INVESTING IN AND MANAGING COMPANIES WHICH PROVIDE ONLINE GAMING SERVICES TO END-CUSTOMERS. BETSSON AB OWNS BETSSON MALTA WHICH OPERATES GAMES THROUGH PARTNERSHIPS AND TOWARDS END CUSTOMERS VIA WWW.BETSSON.COM, WWW.CASINOEURO.COM AND WWW.CHERRYCASINO.COM. BETSSON MALTA OFFERS POKER, CASINO, CARD GAMES, LOTTERY, BINGO AND GAMES. CUSTOMERS ARE PRIMARILY FROM THE NORDIC REGION AND THE REST OF EUROPE. BETSSON AB IS LISTED ON OMX NASDAQ NORDIC MID CAP LIST, (BETS).

This information was brought to you by Cision http://www.cisionwire.com

Contacts

Betsson AB (publ)
Pontus Lindwall, +46 (0)8 506 403 10
CEO and President
+46 (0)708 27 51 55
Pontus@betsson.com

Contacts

Betsson AB (publ)
Pontus Lindwall, +46 (0)8 506 403 10
CEO and President
+46 (0)708 27 51 55
Pontus@betsson.com