2007-02-09 12:25:45

YEAR-END REPORT 1 JANUARY – 31 DECEMBER 2006

Q4 2006
Betting turnover: 2 582 MSEK (1 970)
Gross profit: 17,9 MSEK (7,3)
Gross margin: 0,69% (0,37%)
Operating income: 13,0 MSEK (4,4)
Operating margin: 72% (60%)
Net income: 12,4 MSEK (4,4)
Profit per share: 0,06 SEK

Calendar year 2006
Betting turnover: 8 059 MSEK (5 221)
Gross profit: 65,3 MSEK (31,2)
Gross margin: 0,81% (0,60%)
Operating income: 46,7 MSEK (22,0)
Operating margin: 70% (71%)
Net income: 42,5 MSEK (22,1)
Profit per share: 0,21 SEK

Activities during Q4
To further underline Betting Promotion’s commitment to live betting additional staff have been employed in Malta during the fourth quarter. Technical support at the Malta office was also enhanced in order to manage more live games. The number of employees is currently 16.

During the fourth quarter an additional 3,6 MSEK has been invested into GameVillage Ltd. (formerly the Game Storm project). The commercial launch is expected during the first half of 2007.

Johan Moazed was appointed as managing director. He will succeed Göran Nordenhök as from 1 January 2007. Moazed has been with Betting Promotion since September 2003 and is a board member and former marketing director.

(For tables, see the attached file)

Proforma
All figures for the period from Q1 2004 up to and including Q4 2005 in this report are proforma and refer to activities in the betting business which then were operated in a different legal form

Calendar year 2006
Betting Promotion has achieved strong growth throughout the year both in terms of turnover and profit. This was due partly to general growth within the industry and in part to the continued development of Betting Promotion’s software and technology.

A system for live betting has been developed. Live betting is especially well suited for betting exchanges providing punters with greater flexibility to manage their positions when compared to bookmakers.

The majority of Betting Promotion’s cash assets are deposited with betting exchange operators in order to provide liquidity. For that reason fluctuations in the exchange rates during the year have had a slight negative effect on Betting Promotion’s results.

Betting turnover during the year amounted to 8 059 MSEK compared to the predicted 9 000 MSEK. This mainly due to the fact that turnover during the World Cup amounted to less than calculated. Gross margin was 0,81% compared to the predicted 0,70%. Expenses for 2006 ran higher than calculated, partly due to one-time costs but foremost due to recruitment of personnel in order to develop the company at a quicker pace. Betting Promotion present all sorts of development costs as expenses.

In September an extra ordinary general meeting authorized the company to purchase up to 10% of outstanding shares. This authority has not yet been exercised.

Cash and cash equivalents have increased during the year from 30,9 MSEK 1 January to 60,2 MSEK at year-end. The financial status is strong. The company holds no debts.
Forecast for 2007
Betting Promotion foresees a continuous stable growth for internet-based betting exchanges during 2007. Live betting also shows a great potential for growth. Betting Promotion will therefore be focusing more resources in this area.

Betting Promotion estimates that betting turnover and profit will increase by approximately 40% during the year.
Dividends
As announced the board will recommend to the shareholders at the annual general meeting that a dividend of 0,10 SEK per share be declared.

Financial information 2007:
The annual report will be published 5 April and can be ordered from the company or downloaded from the Betting Promotion home page. The shareholders’ meeting is scheduled for 20 April.

Interim report Q1 2007 17 April 2007
Interim report Q2 2007 25 July 2007
Interim report Q3 2007 25 October 2007

Stockholm 9 February 2007

The Board

This report has not been reviewed by the auditors.
For further information please contact:
Johan Moazed, Managing director of Betting Promotion Sweden AB.
Telephone +46 40 611 84 94

(For the complete report, please see the attached file) DOWNLOAD COMPLETE DOCUMENT