QUARTER OCTOBER – DECEMBER 2018

  · Group revenue was SEK 1,436.6 (1,256.4)
million, an increase of 14 percent
with an organic growth of 12 percent.
  ·
All regions showed growth in the quarter compared to the same quarter
last
year.
  · Casino revenue was 1,071.7 (867.3) million, an increase of 24
percent with
an organic growth of 20 percent.
  · Sportsbook revenue was 341.4
(359.3) million, a decrease of 5 percent,
whilst Sportsbook turnover increased
by 6 percent with an organic growth of 14
percent.
  · Operating income (EBIT)
was SEK 341.5 (218.4) million, an increase of 56
percent.
  · The operating
margin was 23.8 (17.4) percent.

FULL YEAR 2018

  · Group revenue was SEK
5,419.8 (4,716.5) million, an increase of 15 percent
with an organic growth of
11 percent.
  · Operating income (EBIT) was SEK 1,193.7 (882.2) million, an
increase of 35
percent.
  · Net income was SEK 1,078.1 (786.5) million,
corresponding to SEK 7.79 (5.68)
per share, an increase of 37 percent.
  ·
Operating cash flow amounted to SEK 1,273.3 (946.7) million.
  · The Board of
Directors proposes to the AGM that SEK 539.0 (393.1) million,
which corresponds
to SEK 3.89 (2.84) per share, is distributed to shareholders.

MESSAGE FROM THE
CEO

”Revenue for the fourth quarter 2018 increased 14 percent compared to the
same
quarter 2017. The organic growth was 12 percent and we saw growth across
all
regions. During the quarter casino revenue increased by 24 percent.
Sportsbook
turnover continued to grow after the world cup ended, by 6 percent
during the
quarter, while revenue was down 5 percent compared to the same
quarter 2017. SB
margin was 7.3 percent which is lower than the 8.2 percent
margin for the same
period last year. Total revenue for full year 2018
increased by 15 percent to
SEK 5,419.8 million.

Operating income (EBIT) for
the fourth quarter was SEK 341,5 (218,4) million,
which is equivalent to an
EBIT margin of 23.8 percent, an increase of 56 percent
compared to the same
quarter 2017. For the full year 2018, EBIT reached SEK
1,193.7 million,
equivalent to an EBIT margin of 22 percent and an increase of
35 percent
compared to the full year 2017.

ALL-TIME HIGH IN REVENUE AND EBIT

For the
third consecutive quarter Betsson delivered all-time high revenue and
EBIT and
proved 2018 to be a turning point. I am happy to see how we have been
able to
show continuous results from the ”Back on track” program during the
year. A
year ago we announced the plan that involved the entire organisation.
Since
then, the focus has been on the development of products and technology
to
continue to deliver the best customer experience. At the same time, there
has
been a strong determination to improve efficiency in marketing and in
internal
processes to increase profitability.

During 2018 we have been
preparing heavily for the Swedish regulation that came
into effect January 1,
2019. Preparations included to secure compliance as well
as increased marketing
activities. To stay on track and execute efficient
operations are crucial to
absorb increased costs from betting duties in more
markets. The advantage for a
large group as Betsson, with long industry
experience, several brands and
geographical spread that make the operations
scaleable, is the financial
strength. Now I hope to see a channelisation of
around 95 percent as I am
convinced that this will benefit customers, long-term
operators and Betsson’s
shareholders.

Technical requirements had to be delivered within a short
timeframe and this was
the initial challenge for January 1, 2019. New big
players entering into the
Swedish online casino market has changed market
conditions and we expected to
see an impact in this segment. These factors,
together with high bonus costs,
made a challenging start of the year in Sweden,
however customer activity is in
line with our expectations. Long-term we expect
the market to grow in a
sustainable manner and overall we remain positive about
industry growth in
regulated markets”.

For further information,
contact:
Pontus Lindwall, President and CEO
+46 (0)8 506 403 00

Kaaren Hilsen,
CFO
+46 (0)8 506 403 00
kaaren.hilsen@betssonab.com

Anna Ulinder, IR
Manager
+46 (0)8 506 403 00
ir@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, primarily in
locally regulated markets. Betsson AB is listed on Nasdaq
Stockholm Large Cap
(BETS). Betsson’s operational subsidiaries’ vision is to
deliver the best
customer experience in the industry. They offer casino,
sportsbook and other
games via gaming licences in twelve countries in Europe and
Central Asia. The
business model is to offer gaming under multiple brands,
including Betsson,
Betsafe, Nordicbet and Casinoeuro. 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 the 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

This information is information that
Betsson AB is obliged to make public
pursuant to the EU Market Abuse
Regulation. The information was submitted for
publication, through the agency
of the contact persons set out above, at 07.30
CET on 14 February 2019.