Interview with Pontis Lindwall, CEO of Betsson on Q3 Performance

Introduction

• Host: Welcomes viewers and introduces regular guest, Pontis Lindwall, CEO of Betsson.
• Pontis: Discusses strong Q3 performance, the seventh consecutive quarter with positive results.

Key Highlights

• Photo in Q3 Report: Pontis wore a costume from an Italian TV commercial. This was a response to criticism for not including such pictures in the previous quarter.
• Performance Metrics: Impressive performance metrics with growth in:
  • Revenue
  • EBITDA
  • Gross Profit
  • Net Income
  • Organic Revenue

Important KPI

• Broad-Based Revenue Increase: Highlighted as the most impressive KPI, showing scalability and maintaining high margins.

Regional Performance

• LatAm: Significant effort and belief in long-term growth; good performance in Q3.
• SEA and Western Europe: Other regions showing strong performance.
• Italy: Exceptional performance by the team; noteworthy.
• Belgium: Welcoming BetFirst operations, expecting good future performance.

Market Specifics

• Belgium: Substantial existing business with new LI A+ license for 2023.
• France: Starting from scratch with recent licensing. Building brand recognition expected to be a gradual process.
• Denmark: Included with Belgium and France as important markets.

Brand Recognition and Market Strategy

• France Strategy: Limited brand recognition currently, but building over time through international brand presence.

Financial Position and Share Price

• Stock Market Reaction: Positive early reaction in share price. Pontis attributes this to Betsson's strong balance sheet and resilience in a less favorable financial climate.
• Profitability: High profitability maintains attractiveness despite market volatility.

Areas of Concern

• Sportsbook Margin: Slightly down due to goal-heavy games, but not a concern as underlying activity remains strong.

Future Outlook and Upcoming Events

• Q4 Expectations: Busy quarter with a packed sports calendar.
• Major Football Tournament: Euros 2023 expected to be a significant event for customer acquisition and engagement.
• Cross-Selling: Noted effectiveness post-World Cup in getting sports betters into casino betting.

Conclusion

• Final Remarks: Thanks to Pontis Lindwall for his time and congratulations on the continuing impressive results.