Amsterdam - Fortuna Entertainment Group N.V. announces its preliminary unaudited consolidated financial results for the fiscal year to 31 December 2013. The preliminary unaudited results of Fortuna Entertainment Group for the full year 2013 confirm a growth in the main markets where the Company is operating.

·         Total Amounts Staked in 2013 increased by 21.2 % to EUR 567.2 million

·         On-line Sports Betting Gross Win in 2013 increased by 35.3% to EUR 51.1 million

·         Total EBITDA in 2013 grew by 20.8% to EUR 26.7 million

·         Group´s 2013 Net Profit up 26.4% to EUR 15.6 million

Fortuna, the leading Central European fixed-odds betting operator present in the markets of Poland, the Czech Republic and Slovakia, recorded in 2013 a total Amounts Staked figure of EUR 567.2 million, 21.2% more than in 2012, according to the preliminary unaudited financial results. The Amount Staked from sports betting reached EUR 551.2 million, 22.9 % more than in 2012. The Amounts Staked performance was positively driven by on-line segment growth in all markets where Fortuna operates. Amounts Staked from lottery bets in 2013 totalled to EUR 16.1 million. The Company greatly exceeded its initial guidance from March 2013 when estimated full year Amounts Staked of EUR 510 million plus.

In 2013, total Gross Win reached EUR 116.5 million, an increase of 5.1% compared with 2012. Gross Win from sports betting equalled EUR 108.8 million, a 7.9% increase yoy. Of which, Gross Win from on-line betting in 2013 increased to EUR 51.1 million, a substantial gain of 35.3% over 2012. On-line betting expansion was supported by a further development of “live betting” and live streaming, which are becoming increasingly popular amongst Fortuna clients.

Gross Win from retail betting in 2013 amounted to EUR 57.8 million, Gross Win from lottery was EUR 7.6 million.

„ I am very pleased with Fortuna´s sales performance driven by a strong growth in on-line sports betting in all markets. Fortuna delivered top line turnover of over EUR 567 million, which is 21.2% ahead of the last year and EBITDA of EUR 26.7 million, 20.8% more than in 2012. Our key strategy to focus on internet and mobile betting and offer broad LIVE content to our clients has paid off. We hope that we will be able to take advantage of this year´s major sporting events such as the Winter Olympics and World Cup in Brazil in order to retain a strong momentum also in 2014,” said Radim Haluza, CEO of Fortuna Entertainment Group.

"In addition we confirm our dividend policy to pay-out 70-100% of the consolidated net profit and the dividend proposal will be announced in the upcoming weeks.” added R. Haluza.

Selected financial indicators – FEG total

Revenues, EBITDA

In 2013 the Company recorded total revenues in the amount of EUR 97.1 million, 0.8 % more than in the previous year. Of which, revenue from sports betting were EUR 89.4 million and went up 3.7% yoy. Revenues from lottery amounted to EUR 7.7 million in 2013.

Total consolidated EBITDA recorded in 2013 was EUR 26.7 million, up 20.8% yoy, which is better than Company´s initial guidance of EUR 23.1 million. EBITDA from sports betting reached EUR 27.3 million, 5.6% more than previous year. EBITDA from lottery was EUR 0.6 million loss and improved 83.1% to last year result.

Tax and Net Profit

Income tax equalled EUR 5.4 million in 2013, 41.7% more than in 2012, due to higher operating profits and a change of corporate income tax in Slovakia from 19% to 23%.

In 2013 the Company recorded Net Profit of EUR 15.6 million, 26.4% more than in the previous year, driven by better operating performance.

Sport Betting Channels and Distribution Network

Fortuna´s on-line business continues to grow rapidly, hand in hand with the increase in broadband penetration affording access to Fortuna´s website. Over the last two years, Fortuna has undergone a transformation from a retail betting operator to a multi-regional on-line business. During 2013, it has started and completed several investments and innovations of its trading platforms, mobile applications and CRM system. As a result of that, Fortuna managed to increase the number of registered players by 26% over the last year and number of clients betting LIVE increased by 57%. The fastest growing channel in 2013 was mobile. Total number of customers preferring this channel has increased by more than 300%.

On the product side Fortuna has expanded its LIVE offer by signing a deal with bwin.party. Bwin Feed provides live sports betting data including odds, fixtures, results, scoreboards and events calendars in multiple languages to online and land-based B2B clients. The feed can be integrated into the clients betting point of sales via a state-of-the-art interface, enabling Fortuna to offer its customers an extensive sportsbook and supporting content. The deal allowed Fortuna to increase the range of LIVE sports events offered to customers by 60%.

Lottery in the Czech Republic

Fortuna has initiated negotiations with Intralot concerning a potential acquisition of Intralot Czech s.r.o., a supplier of lottery technology. After the transaction Fortuna could take over the hardware components (terminals) for the sale of lottery products. Intralot will continue to support the Fortuna with software under much lower provisions. Closing of the transaction is scheduled for the second quarter of 2014. The transaction will be settled in cash and Fortuna is currently in negotiation with its financing bank to fund the deal via bank debt

In May 2013, Fortuna acquired a small scratch cards business from a Czech company GAMESTAR a.s with an aim to get an access to their distribution network (Czech Rail). In autumn 2013 Fortuna and Tipsport agreed to develop a joint venture in the area of instant games – scratch cards. The agreement is subject to an approval of the Czech antimonopoly office.

2014 Outlook and Guidance

In 2014, Fortuna as a multi-channel regulated modern sports betting company shall continue to provide its customers extensive range of products and first class service however and whenever they want to have a bet. The Company´s mission is to constantly innovate and recruit more customers and support its current growth strategy. In 2013, Fortuna spent a significant amount on technology investments to become a leading on-line company in the region and we should leverage those investments during this year sports events such as the winter Olympics or the FIFA World Cup in Brazil.

The regulatory environment in our markets needs to be review, particularly in Poland. In 2014, we will spend a considerable effort to unlock the regulatory situation to allow the regulated market grow at the expense of off-shore market which brings no benefits to the national budgets.