Slide 1: Q2 2022 Presentation of results
Q2 2022 Presentation of results
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Progress during the quarter ▪ Financials ▪ Trading update Pontus Lindwall Martin Öhman President & CEO, CFO, Betsson AB ▪ Regulatory update Betsson AB ▪ Summary ▪ Q&A Jesper Svensson CEO, Betsson Operations 2
Slide 3: Q2 2022 Key Figures
Q2 2022 KEY FIGURES REVENUE EBIT ACTIVE EBIT MEUR 186 MEUR 29 MARGIN NET DEBT CUSTOMERS +8% YoY -23% YoY 15.7% MEUR -20 1 246 719 +13% organic +21% organic +21% YoY CASINO CASINO SPORTSBOOK SPORTSBOOK TURNOVER REVENUE TURNOVER REVENUE +20% +22% +11% +1% YoY YoY YoY YoY 3 All-Time High
Slide 4: Existing Markets – Some Activities
EXISTING MARKETS – SOME ACTIVITIES EX ISTING MARKETS NEW MARKETS B2B M&A ITALY: renewed sponsorship with GEORGIA: adapted product and AC Milan commercial strategy due to SWEDEN: new regulations. Solid developed performance in the quarter native mobile app for Jalla Casino Added 3 new Serie A clubs:
Slide 5: New Markets – Some Activities
NEW MARKETS – SOME ACTIVITIES EX ISTING MARKETS NEW MARKETS B2B M&A LATAM: CROATIA: • New TV commercials Official regional sponsor for AC Milan • Rizk is top 3 brand Official sponsor of CONMEBOL GREECE: Copa Femenina 2022 • Super League 2 • World Rally ARGENTINA: Córdoba province tender for online C
Slide 6: US Launch in Colorado
US LAUNCH IN COLORADO EX ISTING MARKETS NEW MARKETS B2B M&A Continued focus on fine-tuning the product post-launch in Colorado Increased ownership in Strive from 35% to 40% (US-specific PAM supporting Betsson’s market entry) Participating in several RFPs and other processes for the B2B offering 6
Slide 7: Product & Technology Development
PRODUCT & TECHNOLOGY DEVELOPMENT —Cloud migration and native app development —Broadened sportsbook offering in motorsports, table tennis and esports —Strengthened live casino offering in Italy —Expanded casino offering in Greece 7
Slide 8: Industry Awards in the Quarter
INDUSTRY AWARDS IN THE QUARTER Baltic and Scandinavian Gaming Awards International Gaming ▪ Best Sports Betting Operator Awards 2022 in the Baltics (Betsafe) ▪ Best Sports Betting Operator ▪ Safer Gambling Operator in the Nordics (Betsson) ▪ Great Place to Work EGR Marketing & Innovation Awards Affp
Slide 9: Responsible Gaming KPIs
RESPONSIBLE GAMING KPIs 1.1% 85,943 of customer interactions with service contacts customers raised red flags 12.9 % 36.7 % of customers use of NDCs set a non-mandatory deposit limit RG tools 9
Slide 10: Development and KPIs
DEVELOPMENT AND KPIs Active customers (000s) Revenue (MEUR) 1 400 +21% 200 +8% 180 1 200 160 ATH revenue of 140 1 000 120 MEUR 186.3 800 600 100 +13% organic 80 400 60 YoY 200 40 20 0 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 0 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 Customer depos
Slide 11: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +8% +13% 10 0 ROW 3 21 12 (2%) 16 Nordic CEECA (27%) (33%) MEUR 186 195 173 Western Latin Europe America (13%) (25%) Q2 21 Nordics Western CEECA LatAm Rest of world Q2 22 FX and M&A Q2 22 organic revenue Europe reported effects revenue revenue 11
Slide 12: EBIT Development YoY
EBIT DEVELOPMENT YOY -23% Organic EBIT EBIT EBIT Margin Margin Margin 21.9% 15.7% 24.5% 10 1 14 5 MEUR 1 6 16 46 38 29 Q2 21 EBIT Revenue Cost of Marketing Personnel D&A Other Costs Q2 22 EBIT FX and M&A Q2 22 organic Services Sold Expenses Expenses effects EBIT 12
Slide 13: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION — Operating cash flow MEUR Q2 2022 Q2 2021 — Low net working capital impact. Last year’s Q2 was boosted by positive NWC change due to collection of Operating cash flow 37.8 56.3 a VAT receivable — Investments Cash flow from investing -14.8 -19.6 — Investments in own de
Slide 14: Q3 2022 Trading Update
Q3 2022 TRADING UPDATE* Average daily revenue until 17 July was 9.4% higher than the average daily revenue of the full Q3 2021 Q3 The average organic daily revenue was 21.0% higher than the average daily revenue of the full Q3 2021 During this period, the sportsbook margin has been somewhat higher t
Slide 15: Regulatory Update
REGULATORY UPDATE NORWAY PERU SWEDEN ARGENTINA GERMANY Government recently Province of Cordoba Updated market The implementation New online gambling proposed measures set to open a national strategy for Betsson. of the C&D order has legislation recently to improve and international Only one operatio
Slide 16: Summary Q2
SUMMARY Q2 ▪ ATH revenue, driven by strong performance across both casino and sportsbook ▪ Double-digit organic revenue growth ▪ Latin America and CEECA key growth drivers ▪ Healthy profitability despite loss of NL ▪ Positive outlook for the rest of 2022 ▪ Satisfactory start of the third quarter ▪ E
Slide 17: Thank You
betsson ab THANK YOU TIME FOR Q&A