Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2015 Earnings Presentation
32 slides from Betsson Ab Class B's earnings presentation, 2015
Slide 1: Presentation Q3 2015
PRESENTATION Q3 2015 Q3 2015 THIRD QUARTER REVENUES GREW 24%
Slide 2: Q3 2015 Highlights
Q3 2015 HIGHLIGHTS Revenues of SEK 972.9 million (+24%) Organic growth +15% Operating income of SEK 260.2 million (+26%) Gross turnover, Sportsbook +36% Deposits +18%
Slide 3: Business Update
PRESENTATION Q3 2015 BUSINESS UPDATE
Slide 4: Multi Brand and One Platform
MULTI BRAND AND ONE PLATFORM Products Platform Brands Business to Consumers (B2C) Techsson Business to Business (B2B)
Slide 5: Mr Smith Casino to Techsson
MR SMITH CASINO TO TECHSSON “Technical” migration o First brand launched on new front- end framework (New API) Faster site Speeds up front-end development Live casino on mobile Campaign & Communication management tools
Slide 6: Mobile
MOBILE 34 percent of total revenues in Q3 - Growth of 85 percent Release of iOS App for Mr Smith Casino
Slide 7: Mobile Development
MOBILE DEVELOPMENT SEK m +85% 350 35% 300 30% 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 Mobile reveune % of total revenue
Slide 8: Mobile Sportsbook Turnover
MOBILE SPORTSBOOK TURNOVER 60% 55% 56% 50% 48% 43% 40% 40% 30% 30% 20% 10% 0% Q2 Q3 Q4 Q1 Q2 Q3 2014 2015
Slide 9: Q3 Europe-Bet
Q3 EUROPE-BET Acquired by Betsson 29 June (100% of the shares) Betsson gained a strategic stronghold in the region Competitive product offers, possibilities for future sustainable growth Current local license in Georgia is solid, and is expected to remain unchanged
Slide 10: Q3 Europe-Bet
Q3 EUROPE-BET Contributed with SEK 75.2 million in revenues Growth of 13%* (local currency) Operating income of SEK 23.0 million *Includes entire Q3 period. Adjusted for the contribution from the FIFA World Cup last year, growth was 16%
Slide 11: Financial Highlights
PRESENTATION Q3 2015 FINANCIAL HIGHLIGHTS
Slide 12: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Revenues of SEK 972.9 (782.1) million Total growth of 24 percent Organic growth amounted to 15 percent FX of SEK -17.7 million (excluding Europe- Bet) Figures in brackets refer to the same period last year
Slide 13: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS EBIT of SEK 260.2 (207.2) million, a growth of 26 percent FX of total SEK -24.2 million (excluding Europe-Bet) Europe-Bet had FX of SEK -6.2 million* EBIT margin of 26.8 percent (26.5) *If the relationship between GEL (the local currency in Georgia) and SEK had been t
Slide 14: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Cash by end of period SEK 516.2 million (493.6) Earnings per Share SEK 1.78 (1.40), a growth of 27 percent
Slide 15: Revenues, 24% Growth
REVENUES, 24% GROWTH SEK m 1200 972.9 1000 800 600 400 200 0 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 16: Marketing of Total Revenue (%)
MARKETING OF TOTAL REVENUE (%) 25% 21% 19% 20% 19% 20% 18% 17% 15% 10% 5% 0% Q2 Q3 Q4 Q1 Q2 Q3 2014 2015
Slide 17: Product and Geographical Split
PRESENTATION Q3 2015 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 18: Revenue per Segment (%)
REVENUE PER SEGMENT (%) 19.2% (22.2%) B2B, Business to business B2C, Business 80.8% to consumers (77.6%) Figures in brackets refer to the same period last year
Slide 19: Revenue per Segment
REVENUE PER SEGMENT Actual (SEK m) Total Growth (%) B2C 786.1 29% B2B 186.7 7%
Slide 20: Revenue per Product
REVENUE PER PRODUCT 1.1% (1.3%) Casino Poker 28.4% (28.4%) Sportsbook 67.5% 3.1% (67.0%) (3.3%) Other Figures in brackets refer to the same period last year
Slide 21: Revenue per Geography (B2C)
REVENUE PER GEOGRAPHY (B2C) 11.5% (0.8%) Nordic Region 57.4% Other Europe 30.8% (73.0%) (25.7%) EU, outside Nordic region Rest of the world 0.4% (0.4%) Figures in brackets refer to the same period last year
Slide 22: Key Performance Indicators
PRESENTATION Q3 2015 KEY PERFORMANCE INDICATORS
Slide 23: Sportsbook
SPORTSBOOK SEK m 6 000 +36% 9% 8% 5 000 7% 4 000 6% 5% 3 000 4% 2 000 3% 2% 1 000 1% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 Gross turnover Margin after free bets (%)
Slide 24: Deposits – 18% Growth
DEPOSITS – 18% GROWTH SEK m 3 500 3 238 3 000 2 500 2 000 1 500 1 000 500 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015
Slide 25: Active Customers – 35% Growth
ACTIVE CUSTOMERS – 35% GROWTH Thousand 600 492 500 400 300 200 100 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015
Slide 26: Registered Customers
REGISTERED CUSTOMERS Thousand 10 000 8 805 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015
Slide 27: Legal Update
PRESENTATION Q3 2015 LEGAL UPDATE
Slide 28: Legal Update
LEGAL UPDATE The Netherlands The proposed new Dutch legislation is still in the second chamber in the parliament waiting to be processed The political development has been delayed and progress is not expected until late Q1 2016 Implementation is expected towards Q1/Q2 2017 Portugal – Timetable
Slide 29: Legal Update
LEGAL UPDATE Sweden – Timetable for new regulation Legislative process has been initiated. Chairperson is not appointed yet Law proposal planned for Dec 2017 Start of new legislation planned for 1 July 2018
Slide 30: Events After Q3
PRESENTATION Q3 2015 EVENTS AFTER Q3
Slide 31: Events After End of the Period
EVENTS AFTER END OF THE PERIOD Due to lower Sportsbook margins, the fourth quarter of 2015 started with revenue just under the daily average for the third quarter of 2015. The underlying activity follows seasonal patterns Hessen court case
Slide 32: Q&A
PRESENTATION Q3 2015 Q&A