Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2021 Earnings Presentation
24 slides from Betsson Ab Class B's earnings presentation, Oct 26, 2021
Slide 1: Q3 2021
Q3 2021 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Strategic investments ▪ Financials ▪ Trading update ▪ Regulatory update Pontus Lindwall Martin Öhman CEO, Betsson AB CFO, Betsson AB ▪ Summary ▪ Q&A 2
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS ATH REVENUE EBIT SPORTSBOOK MARGIN REVENUE SEK 1.7b 19% +24% +3% YoY YoY GROWTH GROWTH EBIT SPORTSBOOK TURNOVER SEK 324m +7% ACTIVE -2% YoY CUSTOMERS GROWTH CASINO YoY GROWTH REVENUE 986 429 -2% +7% YoY GROWTH YoY GROWTH 3
Slide 4: Recent developments of the Dutch market
RECENT DEVELOPMENTS OF THE DUTCH MARKET — Dutch customers temporary suspended from playing on Betsson sites since September 30 — Decision taken with the objective to operate under the new Dutch licensing regime — Financial impact: EBIT is estimated to approximately SEK -25 million/month 01 02 03 04
Slide 5: The Betsson strategy supports growth
THE BETSSON STRATEGY SUPPORTS GROWTH VISION Deliver the best customer experience in the gaming industry MISSION AMBITION Be a long-term, leading Be a customer-centric gaming company online gaming company that sustainably outgrows the market EXISTING MARKETS NEW MARKETS B2B M&A TALENTED PEOPLE QUALIT
Slide 6: New markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A • Betsson launched its operations in Croatia in Q3 2020 • Croatia had a very strong growth in Q3: +25% QoQ • Mega Jackpot will be added to an already competitive offering • Sports launched in Greece on June 10 and Casino on July 29 • Very positive sta
Slide 7: LatAm continues to show strong development
LATAM CONTINUES TO SHOW STRONG DEVELOPMENT EXISTING NEW MARKETS B2B M&A MARKETS Turnover SEKm LatAm region growing at a continued strong pace reaching ATH in Q3 2021 4 936 4 389 3 297 3 261 3 257 Strong underlying turnover driving 1 981 1 166 1 304 1 493 1 429 452 735 955 920 922 growth, also reachi
Slide 8: Strategic investments
STRATEGIC INVESTMENTS EXISTING MARKETS NEW MARKETS B2B M&A — Inkabet's B2C online gambling business was acquired at 3.8 times EBIT — Inkabet is one of the leading B2C brands targeting the western region of South America — Revenue over the last 12 months was USD 25.2 million and EBIT USD 8.8 million
Slide 9: Betsson US timeline
BETSSON US TIMELINE EXISTING MARKETS NEW MARKETS B2B M&A Contacts with potential prospects 2019 Continuous research Early B2B US Announcement compliance & requirements, Start of US specific research of Colorado product readiness sportsbook development 2020 May 2020 June 2020 July – October 2020 Nove
Slide 10: Innovation supporting growth
INNOVATION SUPPORTING GROWTH Strengthened user experience on 94 casino games were released, games lobbies including improved 14 of which came with a Period views allowing for faster game of Exclusivity for our brands selection BetBuilder was upgraded to Colbet Colombia migrated provide a wider sport
Slide 11: Sustainability framework
SUSTAINABILITY FRAMEWORK Governance model 11
Slide 12: Responsible gaming – customer interactions
RESPONSIBLE GAMING – CUSTOMER INTERACTIONS Betsson proactively increased vigilance in recognition of its customers’ temporarily 100000 changed circumstances during the pandemic 90000 to ensure their safety is maintained 80000 70000 Responsible Gaming Responsible Gaming Tools Tools 60000 deposit limi
Slide 13: A climate roadmap to reach set goals
A CLIMATE ROADMAP TO REACH SET GOALS CLIMATE IMPACT Climate targets are set for 2030 to reduce Outcome 2020: greenhouse gases by: • At least 55% for Scope 1 and 2 • 53% reduced emissions related to Scope 1 and 2 • At least 15% for Scope 3 • 3% increase in emissions related to Scope 3 Work on a clima
Slide 14: Recent awards
RECENT AWARDS International Gaming Awards 2021 Women in Gaming, Diversity Awards 2021 Safer Gambling Operator of the Year Diversity & Inclusion Award Mobile Operator of the Year 14
Slide 15: Financials
FINANCIALS betsson ab
Slide 16: Development and KPIs
DEVELOPMENT AND KPIs Active customers increased Deposits increased by 7% to 986,429 by 2% to MSEK 7,720.3 Casino revenue Sportsbook turnover increased decreased by 7% YoY with a margin of by 2% YoY 7.9% Mobile revenue 82% Sportsbook revenue up 24% YoY of total casino revenue Mobile revenue: 81% of t
Slide 17: Revenue development by region
REVENUE DEVELOPMENT BY REGION +3.4% 14 108 134 96 MSEK 1677 1733 Revenue Q3'20 Nordics Western Europe CEECA RoW Revenue Q3'21 17
Slide 18: EBIT development YoY
EBIT DEVELOPMENT YOY Organic -2% EBIT EBIT Margin EBIT Margin 21.6% Margin 19.6% 57 22 2 8 18.7% 51 34 MSEK 375 329 324 Q3 20 EBIT Revenues Cost of Marketing Personnel Other Costs Q3 21 EBIT FX and M&A Q3 21 organic Services Sold Expenses Expenses effects EBIT 18
Slide 19: Cash flow & financial position
CASH FLOW & FINANCIAL POSITION — Operating cash flow SEK m Q3 2021 Q3 2020 — Positive effect on working capital mainly driven by declined balances on payment providers Operating cash flow 423.5 494.6 — Investments — Driven by investments in Betsson’s proprietary Cash flow from investing -154.3 -107.
Slide 20: Q4 2021 trading update
Q4 2021 TRADING UPDATE* Average daily revenue until 17 October was 17.6% lower than the average daily revenue of the full Q4 2020 Adjusted for negative currency effects average daily revenue was 12.9% lower than the average daily Q4 revenue of the full Q4 2020 Sportsbook margin was 4.2% - extra ordi
Slide 21: Regulatory update
REGULATORY UPDATE betsson ab
Slide 22: Regulatory update
REGULATORY UPDATE NORWAY GERMANY BRAZIL ITALY CANADA The Norwegian A Germany-wide In Brazil the taxation A proposal will be In June, Canada’s government has online casino of gaming has been submitted for parliament passed a announced a proposal regulation was shifted to a GGR reorganising the law al
Slide 23: Summary Q3
SUMMARY Q3 ▪ Solid revenue growth on the back of a strong Q3 in 2020 driven by high sportsbook activity and increased traction in new markets ▪ Dutch operations ceased following a recent new regulatory policy – with the aim to obtain a Dutch license by the end of next summer ▪ The acquisitions of In
Slide 24: Thank you
betsson ab THANK YOU TIME FOR Q&A