Everysport : Interim Report Q1 2022 (English)

Everysport Group AB (publ) (Every A)

Company. Nr: 556739-8143

4th of May 2023

Interim Report

January - March

2023

This is a translated version of the Swedish original, in case of deviations is the Swedish version considered to be the one to apply. This information is such information that Everysport Group AB (publ.) Is required to publish in accordance with the EU Market Abuse Regulation. The information was provided, through the agency of the above contact person, for publication on the 4th of May 2023.

Interim Report January - March 2023

Everysport Group AB (publ)

From the CEO, Hannes Andersson,

The business area Everysport Media reports a strong beginning of the year with increased net sales, positive EBIT and profit contribution. The strategically important B2C revenues increased by more than 20 percent as a result of once again breaking the record number of monthly subscribers in combination with price adjustments. In Q1, we continued to execute on the strategic review of the padel portfolio and significantly reduced the number of facilities, which enables continued investments in the core business. The Group's results are affected by non-recurring effects totaling SEK 2.3 million attributable to Every Padel.

The Group's development

In the first quarter, the Group's net sales amounted to SEK 43.5 million (50.3), the decrease in sales is mainly explained by a reduced padel portfolio. Adjusted EBITDA amounted to SEK 3.6 million (5.6) and adjusted operating profit after depreciation (EBIT) amounted to SEK -3.9 million (-5.6). Items affecting comparability include disposed rent contracts in connection with the divestment of 80 percent of the shares in the subsidiaries Uppsala Padelcenter AB and Every Padel i Västerås AB. The result in the period is affected by non-recurring effects totaling SEK 2.3 million attributable to Every Padel. Please see note 3 on page 18 for more information about the adjustments and one-off effects.

High growth in subscription revenues B2C

The business area Everysport Media increased net sales by 2.1 percent to SEK 32.6 million, corresponding to 75 percent of the Group's total sales in the quarter. It is noteworthy that the strategically important B2C revenues in media grew by over 20 percent compared to the previous year, attributable to continued growth in the number of subscribers from previous record levels and implemented price increases.

New record number of subscribers

The total number of subscribers on a monthly basis at the end of the quarter amounted to 32,290 (24,687),

corresponding to an increase of 31 percent compared to the same period last year. The fact that we manage to continue to grow the number of subscribers while implementing price adjustments is a good testimony to our offer and business model. That said, we remain humbled by the fact that consumers' disposable income is decreasing due to increased inflation and higher interest rates.

New agreements with Svenska Spel and TT

While the development in padel has not been as desired, Everysport stands stronger than in a long time with a profitable core business in the quarter. During the period, we have signed agreements with both Svenska Spel Sport & Casino and TT Nyhetsbyrån regarding sports content. Both agreements are strategically important and started generating revenue from April 2023. In addition, Inmarschlåten - a documentary series, produced together with Expressen, about three football teams in Allsvenskan and their theme songs premiered during the quarter. Supported by a continued positive development in the number of subscribers and several new exciting projects, we remain optimistic about the development of the media business in both the short and long term.

EP is expected to contribute substantially during 2023

Above all, it is the development of Elite Prospects that remains favorable, with strong growth in the number of subscribers, which at the end of the quarter amounted to 19,822 (13,750) - an increase corresponding to 44 percent. Revenues from the site is expected to amount to almost SEK 40 million in 2023 with a large share of recurring revenue. After recently launching a new editorial offer, the focus in 2023 is to add social components and new data points, thus building an even stronger community.

Interim Report January - March 2023

Everysport Group AB (publ)

Forward looking statement

Going forward, we intend to continue to strengthen our offering in the traditional sports media business as well as develop products and launch new business initiatives linked to the Elite Prospects brand. In the quarter, we executed on the communicated plan regarding Every Padel. At the time of this writing, the portfolio has been reduced from nine to three wholly owned facilities, and we have high hopes of divesting one more in the near future. Overall, our previous assessment of a gradual improvement in earnings in 2023 remains.

Stockholm, May 4, 2023

Hannes Andersson

Group CEO

Interim Report January - March 2023

Everysport Group AB (publ)

Significant events during and after the period end

• On January 9, 2023, Everysport announced the results of a strategic review within Every Padel, which involves streamlining the stock from nine to five facilities. Implemented efforts have produced a positive net effect of a total of approx. SEK 10m during the fourth quarter of 2022 and are estimated to provide a total profit improvement of approx. SEK 13m in 2023 in comparison with the full year of 2022.
• On January 11, 2023, Everysport announced that the hockey site Elite Prospects broke a new traffic record during the JVM in December 2022.
• On January 24, 2023, Everysport announced that the company won Svenska Spel Sport & Casino's procurement of sports news. The agreement has an initial contract period of two years starting on April 1, 2023.

• On March 31, 2023 Everysport entered into an agreement with Grundbulten 1117333 AB under name change to Padel och Träning AB on the divestment of 80 percent of the subsidiaries Uppsala Padelcenter AB and Every Padel i Västerås AB. The agreement also includes an option for the buyer to acquire Everysport's remaining share of 20 percent. The purchase price amounts to a total of SEK 12.5 million, of which SEK 1 million is paid in cash and the remaining SEK 11.5 million through a promissory note that is amortised over a five-year period. The closing date was 1 April 2023.