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Interim Management Statement of Fortuna Entertainment Group N.V.

(For the period from July 1st, 2010 until November 10th, 2010)

The nine months results of Fortuna Entertainment Group („Fortuna“ or „the Company“) confirm the continuous growth of the Company. Fortuna, which is the leading Central European fixed-odds betting operator present on the markets of Poland, the Czech Republic, Slovakia and Hungary, recorded its total Amounts Staked for the reporting period EUR 276.1 million, which is by 11.7% yoy more, according to preliminary unaudited financial results. In the third quarter 2010, the total amounts staked reached EUR 84.5 million, up by 11.4% compared to the last year.

„Highly positive financial results of Fortuna recorded in the third quarter follow the strong performance of the Company from the first half of this year. Apart from the rapid growth of the on-line betting segment, we have also managed to improve results from the retail betting in all markets which I consider very important. It also confirms that our chosen sales strategy focusing not only on internet betting but also on our advanced retail network is successful,“ said Fortuna Entertainment Group CEO Jiří Bunda. „I am convinced that expansion of our distribution network through partner outlets in cooperation with successful local entities will become the next positive driver for this segment.“ added J. Bunda.

In the first nine months of 2010 Gross Win reached EUR 66.5 million, an increase by 12.4% compared with 2009. In the third quarter of 2010 Gross Win reached EUR 21.1 million, up by 17.6% yoy period.

EBITDA increased in the first nine months of 2010 by 19.0% to EUR 17.2 million. Net profit (from the continued operations) of the Company recorded in the first nine months of 2010 reached EUR 11.9 million,  by 21% more than in the same period last year.

The recorded results were driven in particular by the increasing revenues of the online betting business. Gross Win from on-line betting in the first nine months of 2010 went up to EUR 15.3 million which is by 51% more than in the same period last year. Out of this, Gross Win from on-line betting increased by 53% and by 48% in the Czech Republic and Slovakia respectively.

Gross Win from retail betting in the first nine months of 2010 was EUR 51.2 million, up by 4% yoy. The biggest increase was recorded in Poland where Gross Win from retail betting went up by 18% yoy while in the Czech Republic it went down slightly by 3% yoy. In Slovakia Gross Win grew by 4% yoy in this period.

Since the end of the third quarter, the Company continues to grow dynamically the total bets received (Amounts Staked). In October, we collected historically the biggest monthly volume of bets in the amount of approximately EUR 35 million. In the last quarter our challenge will be to exceed the fourth quarter 2009 results which were , strong thanks to favourable results (from a Company point of view) of the sport games “, added Michal Vepřek, CFO of the Group.

Products and Distribution Nework
The rapid development of internet betting is visible both in the Czech Republic and Slovakia. Through its subsidiary FortunaWin, which is licensed in Malta, in June Fortuna also introduced internet betting in Hungary and in the upcoming months it will also closely follow the development of regulatory framework in Poland, where the future of on-line betting is still being decided. The Gross Win from on-line betting in the current markets grew during the first nine months of 2010 by more than 50% if compared with the same period in 2009.

The positive figures were also achieved through further development of “Live betting” (real-time bets placed during particular games or events), which currently represents more than 15% of the amounts staked through the internet.

Although the internet betting has recorded a double digit growth, the retail outlets network remains the primary distribution channel of Fortuna and contributes to Gross Win of the Company by more than 75%. The retails outlets play an important role also in the on-line betting support when „internet“ clients may use all customer services for free, such as deposits and withdrawals or customer queries solutions.

As a result, the focus on the development and efficiency of the outlet network is an important feature of the Company´s strategy in all three markets. For additional expansion of the retail network the group will use primarily partnership model with successful local businesses, such as sport bars. Fortuna will also continue developing its partnerships with leading sport teams in all the countries in which it operates.

On October 21, 2010 Fortuna successfully completed the Initial Public Offering (IPO) of its shares and set the issue price at EUR 4.3 per share. In the offering a total number of 18.2 million shares were sold, including 2 million of newly issued shares which equals to a total offering volume of EUR 78.26 million. The demand exceeded initial expectations of the Company and of its majority shareholder and the issue price was set just under the upper end of the indicated price range.

There have been no material events, transactions or change in the financial position of the Group other than as outlined in this statement. Further, the Board of Directors is not aware of any material events, transactions or change in the financial position of the Group which have occurred since July 1, 2010 up to and including November 10, 2010 being the date of the publication of this Interim Management Statement.

Amsterdam, November 10, 2010

Appendix- Selected financial figures (consolidated, unaudited)

(mil. EUR) 9M 2009 9M 20092010 Change in %
Amounts Staked 247.2 276.1 11.7 %
Gross Win 59.2 66.5 12.4 %
-      online 10.1 15.3 51 %
-      retail 49.1 51.2 4 %
EBITDA 14.4 17.2 19 %
Net Profit 9.9 11.9 21 %
(mil. EUR) Q3 2009 Q3 2010 Change in %
Amounts Staked 75.8 84.5 11.4 %
Gross Win 18.0 21.1 17.6 %
-      online 3.1 4.8 54 %
-      retail 14.8 16.3 10 %


Petr Šrain

PR manager, Spokesperson
Tel.: +420 267 218 195
Mobil: +420 739 607 527
E-mail: [email protected]

These contacts are primarily for journalists. Therefore, unfortunately, we can not guarantee that we will be able to react to non-media enquiries within the desired deadline. If you are a Fortuna customer, you can also send your question to [email protected] or connect with us some other way. Thank you for your understanding.