2007-04-24 10:30:48

INTERIM REPORT Q1 2007 1 JANUARY – 31 MARCH 2007

Q1 2007
Betting turnover: 2655 MSEK (1578)
Net turnover: 22.3 MSEK (12.9)
Gross margin: 0.84% (0.81%)
Operating income: 17.8 MSEK (8.5)
Operating margin: 80% (66%)
Net income: 17.0 MSEK (7.5)
Profit per share: 0.08 SEK

Activities during Q1
The growth in profit and betting turnover during the first quarter has been very satisfactory and shows that Betting Promotion is experiencing a period of rapid growth. The growth is dependent on a number of factors: the growth of existing customers, integration of new customers and further development of our services. All of these factors have contributed to the large increase in betting turnover and profit during the first quarter.

Betting Promotion’s commitment to live-betting has been successful during the first quarter. Live-betting delivered 15% of the betting turnover (7% whole year 2006). Approximately 20 games per week are included in the live-betting service to the exchanges at the present time. It is the intention of the Company to increase this number. The betting turnover for each game has continued to increase compared to previous periods.


The head office of Betting Promotion has moved from Stockholm to Malmö. The Company now has one office in Sweden and one in Malta. The restructuring leads to less administration and better possibilities for interaction between the management and the staff.

1.8 MSEK has been invested into GameVillage during the quarter. The total investment is now 9.5 MSEK. The commercial launch of GameVillage is expected during the second quarter 2007.

The work performed by the company for its own use and capitalized amounted to 1.1 MSEK during the first quarter.

(For tables, please see the attached file)

Proforma
All figures for the period from Q1 2005 up to and including Q4 2005 in this report are pro-forma and refer to activities in the betting business which then were operated in a different legal form
Forecast for 2007
At the start of the year Betting Promotion made a forecast that the betting turnover and profit would increase by approximately 40% during 2007.

As the numbers for the first quarter are better than expected, the forecast is adjusted with betting turnover and profit now forecast to increase by approximately 50%.
Accounting principles
This interim report has been prepared in accordance with IAS 34.
Financial information 2007:
Interim report Q2 2007 25 July 2007
Interim report Q3 2007 25 October 2007

Stockholm 24 April 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)
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