2007-07-25 08:41:43

REPORT ON FIRST SIX MONTHS 2007 1 JANUARY – 30 JUNE 2007

(NGM: BETT)

Q2 2007
Betting turnover: 2558 MSEK (1954)
Net turnover: 12.4 MSEK (18.3)
Gross margin: 0.48% (0.94%)
Operating income: 8.4 MSEK (13.8)
Operating margin: 68% (75%)
Net income: 6.3 MSEK (12.7)
Profit per share: 0.03 SEK

First six months 2007
Betting turnover: 5213 MSEK (3532)
Net turnover: 34.7 MSEK (31.1)
Gross margin: 0.67% (0.88%)
Operating income: 26.2 MSEK (22.3)
Operating margin: 76% (72%)
Net income: 23.3 MSEK (20.2)
Profit per share: 0.12 SEK

Activities
Turnover increased by 31% by comparison with the same period in 2006. However, Q2 2006 benefited from increased turnover and profit generated by the World Cup. It is difficult to make direct comparisons between the two periods but without World Cup activity the increase in turnover would be about 80%. This is higher than Betting Promotion’s forecast and shows that strong growth is continuing.

Gross margin during the quarter has been lower than expected. The nature of Betting Promotion’s activities means that gross margins will vary between quarters. Over time, margins will be more consistent. The gross margin is in line with expectations for the half year. Internal monitoring systems indicate that the profit margin is healthy.

During Q2 live betting represented 20 % of the total turnover from football matches. The comparable figure from Q1 was 18% indicating strong growth.

Betting Promotion’s management is satisfied with performance during the first half year. The strong increase in turnover arises from the growing interest in betting exchanges from the betting public. The Company has an important role to play in this development by guaranteeing liquidity for the sector.

The development of GameVillage is continuing as planned. During the quarter the live site www.gamevillage.com was launched. A further SEK 3.7 million has been invested during Q2 taking the total investment in GameVillage to SEK 13.2 million.

(for complete report, see attached file)
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