Betsson Aktie

Welcome to Betsson's Q2 Report 2026. [Operator Instructions] Now I will hand the conference over to CEO, Pontus Lindwall; and CFO, Martin Ohman. Please go ahead.

Hi, everyone, and welcome to Betsson's presentation of the second quarter 2026. I'm Pontus Lindwall, the President and CEO of Betsson. Presenting with me today is also our CFO, Martin Ohman. The second quarter featured high customer activity, boosted by the FIFA World Cup that kicked off on the 11th of June. Active customers in B2C were up 32% year-over-year at a new all-time high level. Group revenue amounted to EUR 310 million, which was also a new record. Customer deposits, including both B2C and B2B on a gross basis were down 7% year-over-year. As in previous quarters, the strongest growth came from Latin America, which grew by 32% to new record levels and is now our largest region. The increase was broad-based and boosted by the FIFA World Cup, which contributed to high activity among both new and existing customers.

Peru and Argentina were the region's strongest performers, thanks to continuous product investments, strong brands and well-targeted marketing activities linked to the World Cup. Revenue for the B2C operations increased by 14% year-on-year and also reached a new record level. B2B revenue, on the other hand, remained at a lower level than in the corresponding quarter last year. The trend has stabilized, but at a lower level than during the comparative period. Our strategy is based on a balanced mix of B2C and B2B initiatives, and we are working hard to return to growth in B2B with both existing and new customers. EBIT was EUR 42 million in the quarter, down versus last year, but significantly up from the previous quarter. The EBIT margin was 13.6%, lower than in Q2 last year, but up from the previous quarter. Casino revenue increased by 2%, while sportsbook revenue was up 1% year-over-year. The sportsbook margin was 10.5%, up from 9.5% in Q2 last year.

Our balance sheet remains strong. We ended the quarter with a net cash position of EUR 128 million. Our main marketing activities in the quarter were focused on the FIFA World Cup that kicked off in June. This is the largest event in football worldwide. Ahead of the event, we launched a new global ad campaign called the Betsson Football Festival, which is a concept built around the passion and energy of football fans worldwide. The campaign consists of a global TV commercial with a newly created Anthem specifically for Betsson, a song that is now available on Spotify. We also launched Pride of the Nation, which is an in-depth football talk show, featuring players from 4 of Betsson's sponsored top clubs Inter, Club Brugge, Atl tico Nacional and Racing Club. In addition, we launched a World Cup podcast for the Latin American region with experts, hosts and guests.

Betsson's engagement in Padel continued in the second quarter with 2 main sponsorships. We were the official sponsor of the Buenos Aires Premier Padel P1 in Argentina as well as an official partner of the BNL Italy Major Premier Padel in Rome. In the second quarter, we continued to advance our positions in Italy, gaining market shares in both casino and sports betting, supported by our sponsorship with Inter. Inter had an amazing season and won the Italian double, which means winning both the league and the cup in Italy.

Betsson's gaming sites are largely operated on a proprietary platform. The platform manages payments, customer information, account management as well as the games. Within Betsson, artificial intelligence, AI has been an important factor supporting, for example, customer services and various predictive tools. Lately, AI is being used to drive efficiency across all operations in the group, including marketing and product and technology development. Development work during the quarter was focused on preparations ahead of the FIFA World Cup.

For example, capacity within the platform and the sportsbook was expanded and stress-tested in various ways to be able to handle up to 5x more traffic than usual. For the sportsbook, several improvements to the customer experience were introduced, such as new multiplayer features based on the number of goals scored, Goal Rush as well as the option to let the player coming in from the bench take over a bet placed on the player who was substituted, thereby keeping the bet alive even after the substitution, Super Sub. 376 new casino games were launched during the quarter, of which 32 were exclusive to Betsson. Further, several new payment solutions were integrated across some of the group's most important markets.

And now I'll hand over to Martin for a closer look at the financials.

Thanks, Pontus, and hello, everyone. As we heard Pontus mentioning, the second quarter was a solid quarter with all-time high revenue and increased operating income compared to the previous quarter. Many KPIs are trending in the right way with a lot of all-time highs following increased activity related to the first part of the FIFA World Cup. And with that said, let's kick off this section by starting with some KPIs before we go into the details of the financial numbers.

Customer deposits in all gaming solutions, including both B2B and B2C, are down 7% compared to the same period last year, but number of active customers is the highest number ever and sums up to more than 1.8 million customers in the quarter, an increase of 32% compared to last year. The gross turnover in sportsbook across all Betsson's gaming solutions was down 12% compared to the same period last year, and amounts to approximately EUR 1.3 billion, and this number also includes both B2B and B2C.

Sportsbook margin was 10.5%, which is higher than the 9.5% margin in the second quarter last year and higher than the 2-year rolling average margin of 8.9%. Sportsbook revenue slightly increased by 1% compared to last year and amounted to EUR 91 million, which, together with the revenue in Q4 2024 is the highest sportsbook revenue ever for a single quarter. The casino turnover is down 9% year-on-year, but casino revenue increased by 2.5%. Casino revenue represented 70% of the group's total revenue in the quarter and sportsbook represented 29%. Reported revenue for the quarter amounted to EUR 310 million, an increase of 2% and the highest revenue ever for a single quarter. Organic growth year-on-year was 6%.

Revenue from B2C business has grown by 14% or EUR 33 million year-on-year, whilst the B2B business shows declining revenue year-on-year by 35% or by EUR 27 million, explained by decreased revenue from one of the group's B2B customers. Revenue from the B2B business corresponds to 16% of total revenue and B2C revenue to 84%. Revenue from locally regulated markets increased by 17% compared to last year and now constitutes 76% of total revenue compared to 66% last year.

Splitting revenue by region, we see growth compared to previous year in Western Europe and Latin America, whilst the Nordics and the Central and Eastern Europe and Central Asia region, the CEECA region, both are down compared to last year. In the Nordic region, revenue decreased both compared to the corresponding period last year and the previous quarter. The decline is primarily driven by reduced activity in the casino product. Both Denmark and Sweden reported lower revenue during the quarter, which is the outcome of an active decision to focus marketing activities where we see the best return on investments. The Nordic region represented 9% of the group's total revenue in the second quarter. Revenue from Western Europe increased by 8% year-on-year or by EUR 5 million and reported the highest revenue ever for the region in a single quarter.

The Italian market reported all-time high revenue in the second quarter and also reaching new record levels in both deposits and turnover. The growth compared to corresponding period last year is mainly driven by the casino product. The sportsbook product continued to show strong growth with increased revenue, both year-on-year and compared to the previous quarter, but the sportsbook revenue is still relatively smaller than the casino revenue in Italy. France reported increased revenue, both compared to corresponding period last year and compared to previous quarter. Revenue from Belgium decreased compared to the corresponding period last year, but slightly increased compared to the previous quarter. The decrease is mainly due to lower activity.

The Western Europe region represented 21% of the total revenue in the quarter. Revenue from the CEECA region decreased by 15% or by EUR 18 million. Revenue was negatively impacted in the second quarter by lower license revenue for system deliveries to B2B customers in the region, explained by lower activity in both the sportsbook and the Casino products. However, the B2C segment in the region continued to perform well, where Croatia, Greece, Georgia, Poland, Lithuania and Estonia all reported increased revenue compared with the corresponding period last year. The growth in Croatia and Greece was driven by the casino product, whilst the growth in Poland, Lithuania and Georgia was driven by the sportsbook product. The CEECA region represented 32% of the group's total revenue.

Revenue in the Latin America region increased by EUR 27 million or by 32% compared to the same period last year and was the highest revenue ever for the region, driven by strong underlying activity in both the sportsbook and the Casino with new record levels across sportsbook revenue, casino revenue, deposits and turnover. Argentina, Peru and Colombia also reported all-time high revenue in the second quarter, driven by solid performance across both the casino product and the sportsbook product. The Latin America region represented 36% of the group's total revenue and is now the largest region within the group.

Explaining the development in operating income, this picture breaks down the different components in the profit and loss statement to display the impact of the different line items. Revenue is up year-on-year, but not as much as cost of sales, which has increased by EUR 23 million compared to last year. The increase is, to a large extent, explained by the change in revenue mix between B2B and B2C in the quarter, where we in this quarter see yet a step down in the B2B revenue as a percentage of total revenue and increased revenue from locally regulated markets. And following that increased gaming taxes by some EUR 15 million. The increase in cost of services provided is, apart from gaming taxes, also impacted by higher payment provider fees following increased B2C revenue.

Year-on-year, gross profit decreased by EUR 16 million and amounted to EUR 178 million, which corresponds to a gross profit margin of 57% compared to 64% last year. Marketing spend increased by EUR 4 million compared to last year and corresponds to 16% of total B2C revenue and to some 21% when including affiliate marketing costs as well. Personnel expenses increased by some EUR 3 million compared to last year, explained by increased number of employees, yearly salary revisions and continued investments in product and technology development. Depreciation and amortization costs increased by EUR 1 million year-on-year as a result of increased capitalized development costs. Other items are slightly up year-on-year, where decreased other operating expenses and increased capitalized development costs are counteracting increased other external expenses.

Operating income amounts to EUR 42 million, a decrease of 39% compared to last year, but an increase of 24% compared to previous quarter. The EBIT margin was 13.6% compared to 22.7% last year. Operating cash flow amounts to EUR 60 million compared to EUR 41 million in the same period last year. The deviation year-on-year is mainly explained by changes in working capital, where we this quarter have a positive impact of EUR 21 million, mainly explained by increased short-term liabilities and increased account payables. Cash flow from investing activities sums up to EUR 14 million and relates to investments in own product and technology development.

Cash flow from financing activities impacted the cash flow by EUR 78 million, explained by share buybacks, dividend to shareholders of Betsson AB, dividend paid to noncontrolling interest, lease payments and external loans. Betsson, has as end of June, a net cash position of EUR 128 million and an equity ratio of 61%. And last but not least, Betsson has, in July, signed a long-term multi-currency revolving credit facility of EUR 75 million. The credit facility has a term of 2 years with an option to extend for an additional year. And the purpose of the RCF is to finance working capital requirements and general corporate purposes, including acquisitions.

Pontus, back to you to take us through the trading update.

Thank you very much, Martin. Now let's look at how the third quarter has started. The average daily revenue for the third quarter so far, including the 13th of July, has been 13.7% higher than the average daily revenue of the whole third quarter last year. During the start of Q3 in July, customer activity has been boosted by the FIFA World Cup.

And now a quick summary of the second quarter. In Q2, we saw record levels in group revenue, sportsbook revenue and active customers. We reported continued good growth in Latin America and Western Europe, but CEECA and Nordics declined year-over-year. B2C continued to be the growth engine, but again, there was a decline in B2B compared to last year. The share of revenue from locally regulated markets was at the highest level ever at 76%, driving higher gaming taxes compared to last year. The lower B2B revenue and the higher gaming taxes had a negative impact on profitability in the quarter compared to last year. EBIT and the EBIT margin declined year-over-year, but both increased compared to the previous quarter. We have seen a solid start to the third quarter with average daily revenue up 14% versus the full third quarter last year, boosted by the World Cup.

Thanks, everyone, for listening to the presentation. Let's move on to Q&A. We welcome your questions.

[Operator Instructions] The next question comes from Martin Arnell from DNB Carnegie.

I have a question on -- I remember when you reported Q1 numbers, you mentioned that you've seen a stabilization since December in the B2B license revenue. Would you say that, that is still the case where we are today?

Yes, that would be the same answer. We see stabilization there.

Okay. Can you give any color on the recent development in B2B license revenue and how it's done in June, for example, with the World Cup?

Not really, but we can only say that it has stabilized through the quarter compared to the last quarter. And yes.

Okay. And any color on the strong numbers in LatAm? How much of it is a World Cup boost? And how much is sort of your underlying progress there, would you say?

Of course, it's impacted by the FIFA World Cup. But then again, World Cup is only around 20 days of the quarter. So it has an impact, but it's also the underlying growth that we have in the region from the efforts that we made and from the product development that we do. And as we usually say, these big tournaments, they have a bigger impact on customer intake than on the revenues as such.

And on the World Cup, I know it's a hypothetical question, but do you think you would have been up in your trading if it weren't for the World Cup in the period?

That's a tricky one. I don't know if I can answer it.

No. Fair enough. I just wanted to try. But okay. And my final question is on -- when we look at your revenue, if we look at it -- if we try to look at this year-on-year, and I mean, it's obvious that the B2B license decline is impacting your profitability. It's a similar drop of your revenue in B2B license system as it is in your EBIT year-on-year. Have you discussed sort of taking any cost actions or putting a little bit more pressure on sort of cost reductions given where you are today compared to a year ago?

I would say that we are always very cautious about costs, and we have made cost reductions on the first half of this year, but more as a housekeeping thing that we always do. We have -- if you look at the big cost items that we could really impact, there's mainly marketing and staff costs. And we are in a good position. We spend the marketing money in markets where we see good traction. And we have a lot of good product development going on, which supports B2C, but also existing and new coming B2B. So it wouldn't be wise to cut those costs at the time being. And as I said in previous quarter, I'm still very optimistic for our future outlooks, and we need to march on and look forward.

Okay. And I just have one minor question on your sportsbook. Are you happy with the competitive edge of your sportsbook right now? And also, have you considered entering into prediction markets product, which there are signs of a traditional sportsbook like yourself is sort of monitoring and going into that area as well?

Yes. The first part, we're very satisfied with our -- with the performance of the sportsbook and also with the -- from a technical angle, what we can offer and the market depth and the special betting options that we have developed that we raised in this presentation. And also now we only have a few games left in the World Championship and the sportsbook has technically worked very, very well under very high pressure. So that is something that we can really be proud of and that we are happy about on the technical side. We also made a lot of, let's say, UX enhancements before the World Cup with a special World Cup lobby and things like that, made it easy for customers to find things to bet on. And I have received personal feedback from many people saying that this is a very good experience in the sportsbook that we have now. So we're happy about that.

Regarding prediction markets, something that we look into and follow with great interest. However, in most of the markets where we are strong, the prediction market model doesn't really fit in the same fashion as it does in the U.S., where they kind of follow a different gaming -- a different regulation than the gaming regulation. So in our markets, it would -- if it was to be allowed, it would fall under the gaming regulations. And then again, it's not much of the difference from normal sports betting. But it's something that we follow very closely and monitor some part of the user experience that we see there is definitely interesting to look at and monitor.

There are no more phone questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Yes, there is a question from the credit analyst, Jonathan Anderson from Arctic Securities.

Pontus and Martin, congratulations on the report and the strong sequential growth. A few questions from my side. Could you provide some color on what the external loan payment in the quarter related -- is related to? First question.

Second question, could you also provide some color on the intended use of the RCF sign after the quarter end?

And third question, do you have any update on the expected timing for the Rhino acquisition?

Okay. Thank you for the questions. The first question regarding the external loan repayment, it's actually not the repayment. It's actually a granted loan to our B2B customers.

Secondly, the RCF, firstly, it is a complement to our existing bond financing. And the purpose of this is for working capital financing and general corporate purposes, including M&A.

Thirdly, expected timing of the Rhino acquisition. That is still the same as we said when we communicated -- when we signed the agreement. The intention is to close -- we said -- I think we said the intention is to close it end Q2 or beginning of Q3. And since we are now in the beginning of Q3, we are close to sign that. So most likely in the coming weeks or so.

I think that was the last question, Roland, no more questions?

No, no more questions.

Okay. Thank you very much for listening in, and see you next time. Bye-bye.

Welcome to Betsson Q1 Report 2026. [Operator Instructions] Now I will hand the conference over to CEO, Pontus Lindwall; and CFO, Martin Ohman. Please go ahead.

Thank you very much. Hello, everyone, and welcome to Betsson's presentation of the Q1 report for 2026. I'm Pontus Lindwall, President and CEO of Betsson. With me today is also our CFO, Martin Arman.

Hi, everyone.

In Q1, we saw continued good customer activity in our B2C business with active customers up 11% year-over-year at all new time -- all-time high levels. Group revenue amounted to EUR 285 million, and EBIT was EUR 34 million in the quarter. The EBIT margin was 11.9% for the period. Revenue for the B2C operations was increased by 15% year-on-year and reached a new record level. Growth was particularly strong in Latin America, primarily driven by positive performance in Peru. Western Europe also delivered double-digit growth with Italy as the main driver, where we continue to gain market share in both sports betting and casino. Overall, our B2C business continues to grow and contributes significantly to the group's earnings. In parallel, we keep on investing in several B2C markets, where we have not yet reached profitability, which reduces operating income by approximately EUR 10 million to EUR 15 million per quarter. We continue to believe that these markets have the potential to become profitable, while we closely monitor and evaluate their development and future prospects.

Revenue in the B2B operations decreased to EUR 51 million, driven by lower revenue from one customer. However, activity for these customers has stabilized since early December. Over the medium term, we are confident that we can increase our B2B revenue with both existing and new partners. Casino revenue declined by 4%, while Sportsbook revenue was up 1% year-over-year. The Sportsbook margin was 8.4%, slightly higher than in the first quarter last year. Our balance sheet is as strong as ever. We ended the quarter with a net cash position of EUR 165 million. In March, we entered into an agreement to acquire Rhino Entertainment Group's B2C business, including a license in Canada as well as some technology assets for our B2B business. The transaction is in line with our strategy to create long-term value through investments in both existing and new B2C markets and through further developing our B2B offering.

The acquisition is expected to deliver economies of scale, improved profitability and enhanced growth opportunities in both business areas. The total purchase price amounts to EUR 64.5 million and will be financed with existing cash. In 2025, the acquired assets, both B2C and B2B, generated an estimated EUR 13.7 million of EBITDA on a proforma basis. Completion of the deal is expected in Q2 or Q3 this year, subject to regulatory approvals. Betsson's engagement in sports continued in the first quarter. We entered into a multiyear sponsorship with Davis Cup, the classical annual international team competition in tennis. This partnership further strengthens Betsson's extensive global sponsorship portfolio across elite sports. Betsson is currently the main sponsor of football clubs Inter Milan, Club Brugge and Boca Juniors.

Now we look forward to following the National Davis Cup teams closely across our different regions. In Italy, a new campaign for Betsson Sport was unveiled in the quarter. The 2026 campaign introduces a new TV commercial and sees Roberto Baggio and Fabio Cannavaro join Francesco Totti as ambassadors for the brand.

Francesco Totti is the former captain of Roma and 2006 World Cup winner with Italy, and he's being joined by Roberto Baggio, winner of Ballon d'Or and one of Italy's most recognized footballers, and Fabio Cannavaro, the former Italy captain and 2006 World Cup winner. Betsson has also announced as the title sponsor of Betsson Summer Pro Padel 2026, one of the major sporting events of the summer in Argentina. Betsson's tech platform is a player account management system that makes up the core of the customer offering and user experience. The platform manages customer payments, customer data as well as the games offered to players. During the quarter, the implementation of the new proprietary front-end framework continued, which has been built for increased flexibility and performance and which strengthens the user experience by enabling faster and more efficient rollout of new features and updates going forward.

Betsson also runs a proprietary sportsbook. And during the quarter, several enhancements to the customer experience were introduced such as expanded bet builder functionality, AI-powered match previews and enriched live stats. These enhancements position our Sportsbook strongly ahead of peak events such as the upcoming FIFA World Cup.

Mobile adoption has remained a key focus, supported by a new app for Inkabet in Peru as well as expanded native app capabilities in other markets, designed to drive customer acquisition and retention. A number of new suppliers of slots, casino games were launched in various markets during the quarter. During the first quarter, Betsson participated in the sustainable gaming zone at ICE Gaming Trade Fair in Barcelona. Betsson sponsored the event for the fourth consecutive year, where all proceeds go to organizations working for safer gaming, and Betsson also participated in several panels to discuss responsible gaming and sustainability. More details about Betsson's sustainability framework and reporting can be found in the new sustainability report, which was recently published as part of the annual report for 2025.

This is the first sustainability report according to the EU directive on sustainability reporting called CSRD. At Club Brugge Champions League match in Madrid, Betsson choose to highlight the club's long-standing social message, No Heart No Glory. This initiative aimed to encourage blood and plasma donations in Flanders in Belgium.

And now I'll hand over to Martin for a closer look at the financials.

Thanks, Pontus. The first quarter was a quarter with more or less maintained revenue level, but decreased operating income year-on-year. In today's presentation, we will give you more details of the numbers released earlier in April. But before we go into the details of the financial numbers, we start with a few KPIs. Customer deposits in all gaming solutions are down by 40% compared to the same period last year, but number of active customers increased by 6%.

The gross turnover in Sportsbook across all bets in gaming solutions was down 21% compared to the same period last year and amounts to approximately EUR 1.5 billion. Sportsbook margin was 8.4%, which is higher than the 8.0% margin in the first quarter last year, but below the 2-year rolling average margin of 8.7%. Sportsbook revenue slightly increased by 1% compared to last year and amounted to EUR 80 million. The casino turnover is down 17% year-on-year and casino revenue decreased by 4%.

Casino revenue represented 72% of the group's total revenue in the quarter, and Sportsbooks up 27%. Reported revenue for the quarter amounted to EUR 285 million, a decrease of 3% year-on-year, but 4% organic growth. Revenue from locally regulated markets increased by 20% compared to last year and now constitutes 73% of total revenue compared to 59% last year. Revenue from the B2C business has grown by 15% or EUR 31 million year-on-year, whilst the B2B business shows declining revenue year-on-year by 43% or by EUR 39 million, explained by decreased revenue from one of the group's B2B customers. Revenue from the B2B business corresponds to 18% of total revenue and B2C revenue to 82%.

Splitting revenue by region, we see growth compared to previous year in all regions, except for the Nordics and the Central and Eastern Europe and Central Asia region, the CEECA region, which both are down compared to last year. In the Nordic region, revenue decreased both compared to the corresponding period last year and to the previous quarter. The decline is primarily driven by reduced activity in the casino products. Both Denmark and Sweden reported lower revenue during the quarter, which is the outcome of an active decision to focus marketing activities, where we see the best return on investments. The Nordic region represented 11% of the group's total revenue in the first quarter. Revenue from Western Europe increased by 10% year-on-year or by EUR 6 million and reported the highest revenue ever for the region in a single quarter.

As Pontus said, the Italian market reported all-time high revenue in the first quarter, reaching new record levels in both deposits and turnover. The growth compared to the corresponding period last year is mainly driven by the casino product. The Sportsbook product continued to show strong growth with increased revenue both year-on-year and compared to the previous quarter, but the Sportsbook revenue is still relatively smaller than the casino revenue in Italy.

France reported increased revenue, both compared to the corresponding period last year and compared to the previous quarter. Revenue from Belgium decreased compared to the corresponding period last year and previous quarter, explained by decreased Sportsbook revenue. The Western Europe region represented 21% of total revenue in the quarter. Revenue from the CEECA region decreased by 22% or by EUR 27 million. Revenue was negatively impacted in the first quarter by lower license revenue for system deliveries in the region with a decline primarily driven by the Casino products.

The B2C segment in the region continued to perform well. Croatia, Greece, Georgia, Poland, Lithuania and Latvia, all reported increased revenue compared with the corresponding period last year. The growth in Croatia and Greece was driven by the Casino product, whilst the growth in Poland and Georgia was driven by the Sportsbook products. The CEECA region represented 34% of the group's total revenue. Revenue in the Latin America region increased by EUR 19 million or by 21% compared to the same period last year and also increased compared to the previous quarter. Peru and Colombia reported increased revenue in the quarter, and the growth was driven by solid performance across both the Casino product and the Sportsbook product with underlying growth in both play deposits and turnover in both markets. Argentina reported in line with the corresponding period last year and the previous quarter. The reported revenue was significantly impacted by negative currency effects in the quarter. In local currency, Argentina continue to report strong growth across both Casino and Sportsbook. The Latin America region represented 33% of the group's total revenue in the first quarter.

Explaining the development in operating income, this picture breaks down the different components in the profit and loss statement to display the impact of the different line items. Revenue is slightly down year-on-year, impacting gross profits. However, revenue from locally regulated markets has increased and following that increased gaming taxes by some EUR 8 million. Increase of cost of services provided is apart from gaming taxes, also explained by higher payment provider fees, following increased B2C revenue and higher costs related to regulatory licenses. Gross profit is also impacted by the change in revenue mix between B2C and B2B in the quarter, where we, in this quarter, see a step down in the B2B revenue as percentage of total revenue.

Year-on-year, gross profit decreased by EUR 24 million compared to the same period last year and amounted to EUR 164 million, which corresponds to a gross profit margin of 58% compared to 64% last year. Marketing spend increased by EUR 1 million compared to last year and corresponds to 16% of total B2C revenue and to some 21% when including affiliate marketing cost as well. Personnel expenses increased by some EUR 3 million compared to last year, explained by increased number of employees following geographical expansion, increased investments in product and technology development.

Depreciation and amortization costs increased by EUR 2 million year-on-year as a result of increased capitalized development costs. Other items are flat year-on-year, where increased capitalized development costs are contracting increased other external expenses. Operating income amounts to EUR 34 million, a decrease of 47% compared to last year. The EBIT margin was 11.9% compared to 21.9% last year. Operating cash flow amounts to EUR 58 million compared to EUR 86 million in the same period last year.

The deviation year-on-year is mainly explained by lower operating income and increased taxes paid. Operating cash flow is also impacted by changes in working capital of EUR 17 million, mainly explained by decreased accounts receivable and lower payment provider balances. Cash flow from investing activities sums up to EUR 15 million and relates to investments in own product and technology development. Cash flow from financing activities impacted the cash flow by EUR 25 million, mainly driven by share buybacks of EUR 20 million, but also impacted by dividend paid to noncontrolling interest of EUR 2 million, loan to associated companies of EUR 1 million and lease payments of EUR 2 million. Betsson has, as end of March, a net cash position of EUR 165 million and an equity ratio of 66%.

Pontus, back to you to take us through the trading updates.

Thank you, Martin, for reading out all those figures. So let's look at how the second quarter has started. The average daily revenue for the second quarter to date up to and including 21st of April has been 3.7% higher than the average daily revenue of the full second quarter of 2025. During the period so far in April this year, the Sportsbook margin has been higher than the historical average.

Now a quick summary of the first quarter. We saw continued strong performance in B2C, but the B2B business declined. Regionally, growth was strong in Latin America and Western Europe, while the CEECA region and the Nordics both declined. The share of locally regulated markets was the highest ever at 73% and drove higher gaming taxes. Lower B2B revenue and higher gaming taxes impacted profitability in the quarter. In June, the FIFA World Cup will begin, which we expect to contribute to increased activity and customer intake. Our investments in recent years have strengthened our position and with a competitive offering, the strong brand and a proven strategy, we are well positioned to capitalize on opportunities in the global online gaming market.

Thanks, everyone, for listening to the presentation. And now it's time for Q&A. We welcome your questions.

[Operator Instructions] The next question comes from Georg Attling from Pareto Securities.

I have a couple of questions. So starting with B2B. You say that this customer that you have seen revenue stabilizing since December. Does that mean that we should expect B2B flat sequentially here in Q2?

It's very hard to see how the rest of the quarter is going to develop. But what we have seen so far since December last year, it has stabilized.

Okay. And you're writing the report that B2C contributes significantly to profits. We've seen what's happened to profits, obviously, now that B2B has come down. So just a bit curious how we should read that significant contribution. Is it -- do you say anything more? Is it more than half? A bit more detail there would be -- it would be great.

We're not in the position to give those figures out, but we can just reiterate that we have significant profits also from B2C. And as we mentioned in the report and during the presentation, we continue to invest in several B2C markets as well that looks promising for the future, but which comes with higher cost than revenues for the time being.

Okay. In these growth markets that you currently lose money on the B2C side, have your strategy at all changed in regards to those investments considering how B2B has developed?

No, it has not because we don't believe that the right -- that it's the right thing to try to fix one thing with working on another thing. I mean these are markets that we believe in long term. And all the markets that we have -- where we operate now profitable -- will profit in the B2C, they have taken many, many years to build up. So that's how business is made, and we have to keep investing in the markets that we believe in.

Okay. So is my interpretation correct and then -- that if B2B continues to decline, you're not going to change the strategy to protect the margin in the short term?

I mean this is something that we haven't really discussed because it's not the situation that we are in front of right now. As we say, the B2B has stabilized, and we are looking towards getting also new clients on to the B2B side. So we are more preparing for that kind of scenario going forward.

That's clear. I just have a final question on Rhino. If you could share some more details here on their turnover. How much is that? How much is B2B versus B2C in that pro forma EBITDA that you provided?

That's -- we haven't published those figures. So that's not something that we can go into.

Okay. But will it be accretive or not to the margin on the group level?

Yes, it will.

[Operator Instructions] There are no more phone questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

So there are no further questions. So thank you, everyone, for listening in, and see you at the next presentation. Bye-bye.

Buh-bye.

Welcome to Betsson Q4 Report 2025. [Operator Instructions]

Now I will hand the conference over to CEO, Pontus Lindwall; and CFO, Martin Ohman. Please go ahead.

Thank you. Good morning, and welcome to Betsson's presentation of the fourth quarter of 2025. I'm Pontus Lindwall, the President and CEO of Betsson. With me and presenting today is also our CFO, Martin Ohman.

In Q4, we saw continued good customer activity with an increased number of active players compared to the same period last year. Revenue amounted to EUR 304 million, and operating income was EUR 53 million in the quarter. The EBIT margin was 17.5% for the period.

Casino revenue was up 3% year-over-year, while Sportsbook revenue was down 9%. The Sportsbook revenue was negatively impacted by a lower Sportsbook margin in the quarter. We ended the year with a strong net cash position of EUR 158 million.

Regionally, Western Europe and Latin America continued to show revenue growth while revenue from Nordic region and CEECA declined. Revenue from our B2C operations continued to increase, thanks to successful product and marketing investments, while revenue from our B2B business was lower than the comparison period last year. The decline in the B2B was mainly due to one-off Betsson's customers having lower activity than in the corresponding period in the previous year.

The share of revenue from locally regulated markets continued to increase and reached an all-time high of 68%, which consequently drove higher gaming taxes. We continue to invest in the product and technology organization to strengthen the customer experience and our long-term competitiveness, which led to higher personnel costs.

Lower B2B revenue, higher gaming taxes and increased personnel costs had a negative impact on profitability and operating income during the quarter. Despite the lower profitability, Betsson stands strong operationally with a competitive product offering, increasing brand awareness and technology at the forefront.

Now let's have a quick look at the figures for the full year 2025. Group revenue was at an all-time high of EUR 1.197 billion, up 8% year-over-year. EBITDA, EBIT, net income and earnings per share were 1% lower year-over-year. The EBIT margin for the year was 21.1%.

Our strong financial position provides us with good conditions to invest in long-term profitable growth and to deliver returns to our shareholders. During the quarter, the Board of Directors initiated a share buyback program corresponding to EUR 40 million and an ordinary dividend of EUR 0.66 per share has been proposed for 2025.

Betsson's engagement in sport continued in the fourth quarter with several new sponsorships, for example, the basketball club Peristeri, the Football Club Iraklis and Volleyball Club Panionios, all in Greece. Also Betsson became the local official sponsor of the Volleyball League in Peru.

Betsson was also quite active with CSR and PR campaigns in Italy and Greece, together with our local partner clubs in those countries, supporting the causes of nonviolence against women and anti-bulling go above and beyond the pure campaign efforts and potential returns. It also feels like the right thing to do.

Betsson's tech platform, the Player Account Management System makes up the core of the customers' offering and user experience. The platform manages customer payments, customer data as well as the games offered to the players.

During the quarter, the introduction of the new front-end framework continued, which has been built for increased flexibility and performance and which strengthens the user experience by enabling faster and more efficient rollout of new features and updates going forward.

Within the Sportsbook, the user interface was further strengthened, while the BetBuilder feature was expanded with more betting opportunities and early win payouts in football continue to be implemented. Further, a number of new suppliers of slots, casino games were launched in various markets during the quarter.

Now I will hand over to Martin for a closer look at the financials in the fourth quarter.

Thanks, Pontus, and hello, everyone. The fourth quarter was a quarter with maintained revenue but decreased EBIT year-on-year. In today's presentation, we will give you more details about the reported numbers. But before we go into the financial numbers, we start by focusing on some KPIs.

Customer deposits in all gaming solutions are down by 6% compared to the same period last year, but at the same time, the number of active customers increased by 5%. The gross turnover in Sportsbook across all bets and gaming solutions was down 14% compared to the same period last year and amounts to approximately EUR 1.5 billion.

Sportsbook margin was 8.8%, which is lower than the 9.8% margin in the fourth quarter last year, but above the 2-year rolling average margin of 8.4%. Sportsbook revenue decreased by some 9% compared to last year and amounted to EUR 83 million.

The casino turnover is down 7% year-on-year, but casino revenue increased by 3% and is the second highest reported casino revenue ever. Casino revenue represented 72% of the group's total revenue in the quarter and Sportsbook some 27%.

Reported revenue for the quarter amounted to EUR 304 million, a slight decrease of 1% year-on-year, but 5% organic growth. Revenue from locally regulated markets increased by 13% compared to last year and now constitute 68% of total revenue compared to 60% last year.

Revenue from the B2C business has grown by 4% or EUR 9 million year-on-year, whilst the B2B business shows declining revenue year-on-year by 14% or by EUR 12 million, explained by decreased revenue from one of the group's B2B customers. Revenue from the B2B business corresponds to 23% of total revenue and B2C revenue to 77%.

Splitting revenue by region. We see growth compared to previous year in all regions, except for the Nordics and the Central and Eastern Europe and Central Asia region, the CEECA region, which both are down compared to last year.

In the Nordic region, Denmark reported decreased revenue in the fourth quarter, primarily driven [Audio Gap] increased turnover and growth in revenue in the fourth quarter. The growth is mainly explained by the casino product and somewhat negatively affected by a lower Sportsbook margin in Peru compared to the corresponding period last year. The Latin America region represented 28% of the group's total revenue in the fourth quarter.

Explaining the development in operating income, this picture breaks down the different components in the profit and loss statement to display the impact of the different line items. Revenue is more or less flat year-on-year, but revenue from locally regulated markets has increased and following that increased gaming taxes by some EUR 10 million, which increases cost of services provided.

Apart from increased gaming taxes, cost of services provided, is also impacted by the revenue mix with somewhat higher part coming from casino, which comes with lower contribution margin than Sportsbook revenue since Sportsbook is an in-house product.

We've increased casino revenue, follows then also increased license fees of some EUR 2 million in the quarter. Gross profit is also impacted by the change in revenue mix between B2C and B2B in the quarter where we, in this quarter, see a step down in B2B revenue as a percentage of total revenue. Year-on-year, gross profit decreased by EUR 16 million compared to the same period last year and amounted to EUR 184 million, which corresponds to a gross profit margin of 61% compared to 65% last year.

Marketing spend decreased by EUR 3 million compared to last year and corresponds to 17% of total B2C revenue and to some 22% when including affiliate marketing costs as well. Personnel expenses increased by some EUR 7 million compared to last year, explained by increased number of employees following geographical expansion and acquisitions, increased investments in product and technology development and also impacted by some nonrecurring personnel items of a couple of millions.

Depreciation and amortization costs were flat compared to last year. Other items include capitalized development costs, other external expenses and other operating income and expenses. The latter 2 are flat compared to last year. The movement in other items related to increased capitalized development costs following increased focus on product and tech development and also following the acquisition and sporting solution adding new employees within tech and product development.

Overall, operating expenses have remained constant year-on-year and changes in operating income are solely coming from gross profit impact. Operating income amounts to EUR 53 million, a decrease of 24% compared to last year. The EBIT margin was 17.5% compared to 23% last year.

Operating cash flow amounts to EUR 23 million compared to EUR 85 million in the same period last year. The deviation year-on-year comes from a series of independent events that have impacted the operating cash flow in the quarter. To start with, operating income has decreased, but taxes paid have increased by some EUR 13 million, partly explained by changes in government's tax collecting processes in some of the countries that Betsson operates in.

Operating cash flow is also negatively impacted by changes in working capital by EUR 30 million, mainly explained by a prepaid sponsorship deal due to cost savings, higher payment provider balances due to timing effects on settlements that occurred after the end of the quarter and jackpot win in Croatia are lowering the jackpot reserves.

Cash flow from investing activities sums up to EUR 28 million, where some EUR 14 million relates to investments in own product and technology development, and EUR 14 million comes from investment in new -- 2 new gaming licenses in Italy.

Cash flow from financing activities impacted the cash flow by EUR 61 million, mainly driven by dividend paid to shareholders of EUR 46 million and share buybacks of EUR 13 million, but also impacted by dividend paid to noncontrolling interest, loan to associated companies and lease payments.

In November, senior unsecured bonds were issued at a total amount of EUR 75 million under a framework of up to EUR 250 million. The bonds have a tenor of 4 years and a floating interest rate of Euribor 3 months plus 275 basis points. In connection with the bond issue, early voluntary redemption of the bonds in the 2023-2026 Series was offered. For those who refrain from this, a mandatory redemption was called for and remaining bonds in the 2023-2026 Series, that did not participate in the voluntary early redemption offer were redeemed in December.

The issue of the new bonds and the redemption of the bonds in the 2023-2026 Series means a significant step down in interest from Euribor plus 460 basis points down to Euribor plus 275 basis points, which will lower the group's interest cost going forward. Betsson has, as end of December, a net cash position of EUR 158 million and an equity ratio of 67%.

Now back to you, Pontus, to present the suggested dividend distribution and trading update.

Thank you, Martin. The cash flows of our business and our solid balance sheet allows us to continue paying out attractive dividends to our shareholders and at the same time, invest in future growth. For 2025, the Board has proposed an ordinary dividend of EUR 0.66 per share. The proposed ordinary dividend for 2025 amounts to approximately EUR 90.9 million. The dividend will be paid out in Swedish kroner in 2 parts in June and October.

Now let's look at how the first quarter of 2026 has started. The average daily revenue in the first quarter up to until and including the 3rd of February has been 0.6% higher than the average daily revenue of the entire first quarter of 2025. The organic growth has been 7.7% for the same period.

Thanks, everyone, for listening to the presentation. And now it's time for Q&A. We welcome your questions.

[Operator Instructions]

We have a question from the web audience about regulations. Basically, noting that taxes have increased -- gaming tax have increased and regulations are becoming stricter. How do you see the future for Betsson in a highly regulated market, are there still interesting levers to pull?

Yes, it's not a surprise that the gambling market goes into taxes once they regulate locally. That's part of the deal, and that is something that we have expected all the time. Still, we believe that there's room to run profitable operations as we can see that we do already. So we believe that Betsson has a great fit into this market also in the future.

There was another question from the web audience about consolidation taking place in the gaming sector. How do you look at this? Do you prefer to look at M&A opportunities? Are there still small, medium players to be acquired? Or do you prefer organic investments into product and technology?

That's a good question. And as we have already mentioned, we continue to invest in both technology and our organic growth. But we are still looking for M&As. And with the strong balance sheet that we have, we are in a very good position to be able to conduct the M&As. It's not thousands of companies out there that fit our needs, but once we find something that suits us, we are in a very good position to make M&A. So the answer is yes, we continue to look, and I'm sure we're going to conclude M&A.

There have been further questions from the web audience about the margins, looking at both the gross margin and the EBITDA margin in Q4? Are there one-offs? And what can we expect going forward?

I mean, the big impact on EBIT is coming from the gross profit, as we said. And on the OpEx side, we are more or less flat year-on-year. There are a few smaller one-offs in personnel costs. But all in all, OpEx is what we can expect, I believe, and gross profit, it's hard to tell going forward.

There was another question from the web audience about the B2B segment. Do you expect the share of revenue from B2B to be stable or increase or decrease going forward?

It's very hard for us to make predictions and we usually don't predict financial figures. But the only thing we can say is that as a company, we have ambitions to continue to grow our B2B business as well as our B2C business. So that's our ambition going forward.

There was another question from the web audience about prediction markets, what can you comment on that? And do you have any current plan of launching products into prediction markets?

We can say that it's a very interesting market segment that has been created in quite a short time span. We don't see that fit as well in our core markets regulations as it seems to fit in the U.S. as an example. So we have no plans to enter into that business as of now.

Yet another question from the web audience. Do you have any plans of issuing a new share buyback program after the current one is completed?

We're now into this program and we don't have any predictions to do about future share buybacks.

Okay. That was it from the web questions. Let's see if we should give someone on the phone another chance. If not, then we say thank you to all the listeners for listening in to this presentation and see you next time. Bye-bye.

I'm Pontus Lindwall, President and CEO of Betsson. With me today is also our CFO, Martin Ohman. The global online gaming market is driven by the shift from off-line to online gaming, and Betsson is well positioned to capture growth opportunities in this structurally attractive market. In the third quarter of 2025, we continue to create value for our customers, partners and shareholders. Total group revenue increased 6% and operating profit grew by 4% and compared to the corresponding period last year. Earnings per share increased by 10% year-over-year. We have a proven and successful product portfolio consisting of both casino and sports betting, as well as a well-diversified mix of revenues from geographical regions which lowers the risk of periodical and weaker developments in individual products or markets. In the third quarter, casino revenue was a new all-time high up 6% year-over-year, while sportsbook revenue was up 4% year-over-year. Revenue from locally regulated markets increased by 16% and accounted for 64% of total revenue during the quarter.

Geographically, the largest growth contribution during the quarter came from Western Europe, where revenue increased by 27%, mainly driven by continued strong growth in Italy where we continue to gain market share in both casino and sports betting. Latin America also continues to be an important growth region in the quarter, with 10% revenue growth year-over-year, driven by Casino. Our business continues to generate strong cash flows, and our balance sheet is very robust with a record net cash position of EUR 220 million. The Board of Directors has decided to initiate a share buyback program of up to EUR 40 million from today and up until the 30th of April 2026. Our strategic sponsorships form an important part of our marketing strategy and Betsson's commitment to sports in general, continues.

During the quarter, we entered into new sponsorships with the basketball clubs Aris BC and Mykonos BC in Greece. A new sponsorship also began with the Italian football club Bari in Serie B. Following the rebranding from Betsafe to our flagship brand, Betsson, the sponsorships of Žalgiris and the Basketball Association in Lithuania were extended under the Betsson brand. In addition, it was particularly nice to see that Club Brugge managed to qualify for the Champions League in football, which means that 2 clubs in this prestigious tournament will wear Betsson's name on their match jerseys decision. On the product and technology side, we continue to invest to deliver the best customer experience on the market. During the third quarter, the implementation of the new proprietary front-end framework continued. This has been built for increased flexibility and performance and strengthen the user experience by enabling faster and more efficient rollout of new features and updates going forward. The development of native apps continued mainly for the market in Argentina where new app was launched stepwise during the third quarter for the 3 provinces. Within the Sportsbook, the user interfaces were improved and an early payout feature was introduced for football, meaning that players can opt to receive winnings as soon as the team led by 2 goals. And now I will hand over to Martin, who will present our financials in more detail.

Thanks, Pontus, and hello, everyone. As Pontus said, the third quarter was a quarter with revenue and EBIT growth, supported by the highest casino revenue ever for an individual quarter and maintain cost control. The activity was somewhat lower in the third quarter in active customer and customer deposits in all gaming solutions about slightly down compared to the same period last year, with the latter decreased by 2%. The gross turnover in Sportsbook across all bets and Gaming Solutions was down by 19% compared to the same period last year and amounts to approximately EUR 1.3 billion.

Sportsbook margin was 8.8%, which is higher than the 7.4% margin in the third quarter last year and above the 2-year rolling average margin of 8.1%. Sportsbook revenue increased by some 4% compared to last year and amounted to EUR 72 million. The casino turnover is down 6% year-on-year, but casino revenue increased by 6% and is the highest reported casino revenue ever. Casino revenue represented 75% of the group's total revenue in the quarter and sport books 24%. Reported revenue for the third quarter amounted to EUR 296 million, an increase of 6% year-on-year and 11% organic growth. Revenue from locally regulated markets increased by 16% compared to last year and now constitutes 64% of total revenue compared to 58% last year. Revenue growth comes from both the B2C and the B2B business in the quarter, where the B2B business is the main growth driver with 15% year-on-year growth and amounts to EUR 77 million, representing 26% of total revenue.

Splitting revenue by region. We see growth compared to previous year in all regions, except for the Nordics, which is down by 20% compared to last year. All markets in the Nordic region reported decreased revenue in the quarter compared to the corresponding period last year. As a consequence of decreased marketing investments in the region and the decision to close down the B2C business in the Norwegian markets as of December last year. The Nordic region represented 12% of the group's total revenue in the third quarter. Revenue from Western Europe increased by 27% year-on-year or by EUR 12 million, and reported the second highest revenue ever for the region in a single quarter. The Italian market reported all-time high revenue in the third quarter, mainly driven by the casino product. The sportsbook product continued to show strong growth with increased revenue, both year-on-year and compared to the previous quarter but the sportsbook revenue is still relatively smaller than the casino in Italy. Revenue from Belgium decreased compared to the corresponding period last year and the previous quarter.

The decline is driven by lower activity in the Sportsbook product following some technical issues in connection with the migration from a third-party sportsbook provider to the Betsson Sportsbook. The Western Europe region represented 19% of the total revenue in the quarter. Revenue from Central and Eastern Europe and Central Asia region, the Sika region increased by 3%. Croatia and Greece reported all-time high revenue in the third quarter. The growth in Croatia is driven by the casino product, whilst Greece reported growth in both the casino and the sportsbook products. Lithuania and Latvia reported increased revenue compared to the same period last year but decreased revenue compared to the previous quarter. Georgia and Estonia reported decreased revenue, both compared to the same period last year and the previous quarter. The decline is primarily driven by the casino product. The Sika region represented 40% of the group's total revenue. Revenue in the Latin America region increased by 10% compared to the same period last year but decreased compared to previous quarter. The increase compared to last year is driven by the casino product. The decline compared to previous quarter is explained by reduced activity in the sportsbook product, mainly because of seasonal variations and a lower sportsbook margin.

Argentina continued to show strong underlying growth in customer deposits and increased turnover and reported higher revenue compared to the same period last year, although facing FX headwinds. Peru and Colombia reported growth compared to the same period last year but decreased revenue compared to the previous quarter. The growth is primarily driven by the casino product. The Latin America region represented 26% of the group's total revenue in the third quarter. Explaining the development in operating income, this picture breaks down the different components in the profit and loss statement to display the impact from the different line items. Revenue has increased by some EUR 16 million and following that, increased cost of services provided as well. The increase in customer services provided is a part from revenue growth, mainly explained by higher gaming taxes following a 64% share of total revenue coming from locally regulated markets. Gross profit increased by EUR 11 million compared to the same period last year and amounts to EUR 190 million, which corresponds to a gross profit margin of 64% equal to last year.

Marketing spend increased by EUR 2 million compared to last year and corresponds to 16% of total B2C revenue and to some 21% when including affiliate marketing costs as well. Increased marketing spend is primarily explained by enhanced marketing efforts in Western Europe. Personnel expenses increased by some EUR 10 million compared to last year, explained by increased number of employees following geographical expansion and acquisitions. This, in combination with organic focus on product and tech development explains the bulk of the increased number of headcounts in the group. Depreciation and amortization costs were flat compared to last year. Other items include capitalized development costs, other external expenses, and other operating income and expenses. The latter 2 are more or less flat compared to last year. The movement in other items relates to increased capitalized development costs following increased focus on product and tech development and also following the acquisition of Sporting Solutions, adding new employees within tech and product development.

Operating income amounts to EUR 67 million, an increase of 4% compared to last year. And the EBIT margin was 22.6% compared to 23.0% last year. Operating cash flow amounts to EUR 65 million compared to EUR 63 million in the same period last year. Operating cash flow is driven by increased operating income but negatively impacted by changes in working capital by some EUR 16 million, mainly explained by decreased accrued expenses. Cash flow from the investing activities is positive in the quarter. Investments in own product and technology development are maintained, but the total number is impacted by a reversal of the purchase consideration of the discontinued acquisition of Holland Gaming Technology and Holland Power Gaming. Cash flow from financing activities impacted the cash flow by EUR 8 million, mainly driven by dividend paid to shareholders with noncontrolling interest and lease payments. Betsson has, as end of September, a net cash position of EUR 220 million and an equity ratio of 60%.

Operating cash flow is slightly up year-to-date with a strong start in the first quarter in 2025, followed by a somewhat weaker second quarter and now in the third quarter, again, showing year-on-year growth with a total operating cash flow of close to EUR 200 million year-to-date as of end of September. When it comes to earnings per share, we can also conclude an increasing trend over time. And as of end of September, the EPS has increased by 12% compared to the same period last year and now amounts to EUR 1.05 per share compared to EUR 0.94 accumulated as for the same period last year.

And now back to you, Pontus to present a trading update and to give some more details on the share buyback program that was initiated earlier today.

Yes. Thank you, Martin. Now let's have a look at how the fourth quarter has started. The average daily revenue in the fourth quarter of 2025, up until and including the 19th of October was 2.1% higher than the average daily revenue of the full fourth quarter of 2024. And about the share buyback program, the Board of Directors has decided a share buyback program of EUR 40 million of Class B shares in Betsson. The buyback program starts the earliest today on the 24th of October 2025 and continues through 30th of April 2026. The buyback program will be carried out in accordance with the so-called safe harbor regulation.

So now let's quickly sum up the highlights of the third quarter of 2025. We saw continued profitable growth and strengthened market positions in the third quarter. Group revenue was up 6% year-over-year, driven by Western Europe and Latin America and the casino product. Casino revenue was at a new all-time high. EBIT was up 4% year-over-year. The growth figures should be seen against the backdrop of challenging comparative figures for third quarter last year, which included the European football championship and the Copa America. Also, we faced FX headwinds in the past quarter in both our B2C and B2B businesses.

The share of revenue from locally regulated markets was 64%. We have a strong balance sheet with record EUR 220 million in net cash. So now let's move over to Q&A, and we welcome your questions.

[Operator Instructions]

The next question comes from Georg Attling from Pareto Securities.

I have 2 questions, if I may. Just starting with the morning's news on the buybacks. Thanks for that. It's been long awaited. But I'm just wondering what's the reason for you actually pulling the trigger on this right now. Is it just merely a consequence of the net cash ballooning or is it fewer M&A opportunities on the line or the valuation or anything else?

No, this is -- I mean, as Pontus mentioned, we are now in a position where we have the highest net cash ever. And this is a decision taken by the Board. to kind of better reflect a nice and sound capital allocation. But we believe that this is not impacting at all any kind of future M&A agendas or any future organic growth initiatives. So this is just a way to kind of balance and look at the proper capital allocation.

Yes, correct, Martin. And we can add to that, that it's not in any way so that there are less M&A opportunities and that, that should be a reason for the buyback. We have a full box of cash, and we're investigating several opportunities as we speak, as we always do for M&A. So this has nothing to do with the climate for M&A.

That was very clear. My second question is just more high level on the strategy, the partnerships with sports clubs. They're becoming quite many. So it seems like you're shifting quite a bit of marketing maybe from casino to more sports focused marketing. Just wondering if this is what we should expect going forward also and how you balance your investments in sports versus casino?

Yes. I would say that sports is a very good way of marketing the brand. And it goes for both Casino and Sports. And I think the most clear example of that is what we can see now in Italy, where we do a very strong sports and very sports-oriented sponsorship with Inter, but still we see the casino marching on. And this is being able, as we are now to sponsor large clubs that has a global reach. It's a fantastic opportunity for us of building the brand and marketing our brand. And as we all know, there has been some challenges with restrictions in marketing in certain markets and taking that into account the sponsorship is a great way of building a good brand, both for casino and sports globally.

That's very clear. That was my questions.

There are no more phone questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

There are no written questions here. So thank you all for attending the conference. Bye-bye.