Future Gaming

CEO Letter

While the first quarter of 2025 delivered solid sales and an EBITDA margin
that remains best-in-class, overall results were somewhat more modest
than what we’ve grown used to in recent quarters. This was due to the new
regulatory measures in Brazil, which we had flagged at the beginning of the
year. Lower sportsbook margins in this market also affected performance.
Encouragingly, strong results across other markets helped offset much of
this impact.

Group net sales in Q1 2025 declined by 22% to SEK
17.1 million. However, excluding Brazil, we recorded
net sales growth of 33%, highlighting a continued very
positive momentum in other markets. Group EBITDA
fell to SEK 10.5 million, though we maintained a comparatively
strong EBITDA margin of 61%, underscoring
our operational efficiency and ability to adapt in a changing
environment.

The group also continued to deliver strong underlying metrics,
with 21,899 referred First Time Depositors (FTDs) in Q1 2025 —
an increase of 41% compared to the same period last year. To
further secure cost-effective FTD referrals to our partners, a few
days ago we announced the acquisition of a portfolio of affiliate
websites focused on the Brazilian market.

Additionally, we observed a significant recovery in Brazil already
during April, with higher sportsbook margins improving our
commissions. More broadly, the second quarter has started on a
stronger footing for the group as a whole.

As our full-year 2025 forecast, issued earlier this year, already accounted
for the impact of the Brazilian regulations, we are maintaining
our guidance of full-year expected revenue between SEK
85 and 95 million and EBITDA between SEK 60 and 70 million.

Finally, I would like to highlight that Fable Media Group recently
completed the last earnout payment related to the acquisition
of our subsidiary, Fable Media ApS. The completion of this
obligation is expected to enhance our cash position and support
our long-term ambition to establish ourselves as a dividend-paying
company.

Alexander Pettersson
CEO, Fable Media Group AB