Fable Media

CEO Letter

Growth in a Challenging Quarter
Net sales for the third quarter increased by 21% year on year to SEK 18.7 million, and the number of referred First Time Depositors rose by 27% to 13,233. The growth is largely the result of increased marketing efforts, where we have chosen to invest more in markets and partnerships with good long-term potential.

Net sales were, however, below the level of a strong second quarter. The quarter started well in July, followed by a significantly weaker August, driven by lower margins across the industry. EBITDA remained stable at SEK 10.6 million, while the investments in marketing affected margins in the short term.

Regulatory Change in Brazil
The regulatory developments in Brazil during the quarter clearly illustrate the importance of diversification. Following the nationwide ban on sports betting and casino activities at the end of September, our activities in Brazil have effectively come to a halt for the time being. While this will have a negative impact on the Group's revenue contribution, it further reinforces the importance of continuing to diversify our market presence and reduce our reliance on individual markets. Maintaining the flexibility to adapt to changing regulatory conditions is an important part of building a sustainable business over the long-term.

Updated Full-Year Outlook
Following the end of the quarter, weaker-than-expected margins in October, combined with the regulatory developments in Brazil, led us to revise our full-year guidance. As communicated on 3 November, we now expect net sales of SEK 69–74 million and Adjusted EBITDA of SEK 40–45 million for 2026. 

At the same time, we see clear signs of underlying strength. Over the past year, commission from our high-value markets significantly increased. This is an important driver of our year-on-year growth in net sales and shows that we are building a stronger revenue base. While near-term conditions remain challenging, as reflected in our updated guidance, this gives us a solid foundation to build on going forward. 

A Solid Foundation
Fable Media Group continues to have a solid foundation for future development. Our asset-light business model, established partner relationships and experience across multiple markets provide us with a strong platform for further growth. We believe there is still considerable potential to develop our existing business, strengthen our market position and pursue new opportunities.

Reflecting this, the Board of Directors proposes a further dividend of SEK 0.15 per share, to be resolved at an Extraordinary General Meeting in December. This underlines our continued ambition to balance investments in the business with returning capital to our shareholders.

Focus on Sustainable Growth 
Looking ahead, our focus remains on strengthening the Group's market diversification, developing our existing partnerships and adapting to the changing conditions in our industry. While market conditions remain challenging, we see opportunities to further develop our business and strengthen our position across multiple markets. We will continue to take a disciplined approach, with a long-term focus on building a sustainable and profitable business.