Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — FY2009 Earnings Presentation
39 slides from Betsson Ab Class B's earnings presentation, Feb 11, 2010
Slide 1: Presentation FY 2009
2010-02-11 Presentation FY 2009 Pontus Lindwall CEO and President
Slide 2: Betsson
Betsson • Introduction • Full Year Presentation • Product and Geographical split • Key Performance Indicators - Sportsbook margin - Customer deposits • Legal • Events after Q4 • Q&A
Slide 3: Introduction
2010-02-11 Betsson Introduction
Slide 4: Betsson
Betsson • 45 years of accumulated competence • 258 employees • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of € 500 000 000 • National monopolies make up primary competitors, secondary competitors include Unibet, Ladbrokes, Expekt, Bwin and similar
Slide 5: Login
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Slide 6: CasinoEuro.com
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Slide 7: Sverigeautomaten
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Slide 8: Sahkoposti
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Slide 9: Cherry Casino
Cherry Casino Promote our brands!
Slide 10: High Growth and Profitability
High Growth and Profitability Revenue Growth EBIT-margin 2007 121% 29.3% 2008 60% 26.7% 2009 25% 24.4% • Outperforming both market growth and competitors • Manage to ”invest during operation”, constantly investing in IT-infrastructure and partnerships while managing operations
Slide 11: Shareholder value
Shareholder value • According to dividend policy, 75 percent of profits shall be distributed to shareholders • Automatic redemption process (more favourable than dividends) • The strong performance has given the best shareholder increase since beginning of 2006 in comparison to competitors
Slide 12: Financial Presentation Q4 2009
2010-02-11 Betsson Financial Presentation Q4 2009
Slide 13: Q4 Highlights
Q4 Highlights • Revenues increased 19 % to SEK 382.9 M (321.1) • Operating income increased 2 % to SEK 93.5 M (91.9) • Earnings per Share SEK 2.29 (2.37) Numbers in gray = Q4 2008
Slide 14: Q4 Highlights
Q4 Highlights • Operating margin 24.4% (28.6) • Active customers increased 72% to 288 700 (167 400) • Cash by end of period SEK 529.1 million (373.2) Numbers in gray = Q4 2008
Slide 15: Q4 Highlights
Q4 Highlights • Increased transfer to shareholders of SEK 9.00 (5.10), where 5.75 (5.10) is ordinary transfer and 3.25 (0.00) is extra transfer. • Despite increase of transfer to shareholders; in June, cash and cash equivalents is assumed to exceed SEK 300 M • Betsson awarded most socially responsib
Slide 16: Quarter on Quarter
Quarter on Quarter • Revenues increased 21% to SEK 382.9 M (316.7) • Operating income increased 18% to SEK 93.5 M (79.4) • Active customers increased 31% to 288 700 (220 900) Numbers in gray = Q3 2009
Slide 17: Full Year 2009
Full Year 2009 • Revenues increased 25% to SEK 1 299.7 M (1037.8) • Operating income increased 15% to SEK 316.9 M (276.6) • Income for the year increased 13% to SEK 303.3 M (267.3), corresponding to SEK 7.73 (6.81) per share Numbers in gray = Full Year 2008
Slide 18: Revenues
M SEK Revenues 450 382.9 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009
Slide 19: Resilience against the economic downturn
Resilience against the economic downturn M SEK 450 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 Overall economic situation
Slide 20: Product and geographical split
2010-02-11 Betsson Product and geographical split
Slide 21: Gross Profit per Product
M SEK Gross Profit per Product 350 300 Growth (%) 250 Other + 28 (Y) + 8 (Q) 200 Poker - 24 (Y) + 15 (Q) 150 Sportsbook + 33 (Y) 100 + 98 (Q) Casino + 28 (Y) 50 + 8 (Q) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009
Slide 22: Gross Profit per Product
Gross Profit per Product 4% 10% Casino 26% Sportsbook 60% Poker Other Q4 2009
Slide 23: Gross Profit per Geographical Area
Gross Profit per Geographical Area SEK 350 300 Growth (%) 250 Rest of World + 0 (Y) - 53 (Q) 200 EU, outside Nordic + 29 (Y) + 20 (Q) 150 153.2 Other Europe + 14 (Y) + 59 (Q) 100 Nordic Countries + 24 (Y) 50 + 10 (Q) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009
Slide 24: Gross Profit per Geographical Area
Gross Profit per Geographical Area 0,3% 13% Nordic Countries 13% Other Europe 33% 54% 61 % 33% 54% EU, outside Nordic region Rest of the world Q4 2009
Slide 25: Key Performance Indicators
2010-02-11 Key Performance Indicators SB Margins Deposits
Slide 26: Growth indicators
Growth indicators Growth Q4 2009 Y/Y Q/Q Active Customers 72% 31% Registred Customers 41% 10% Revenues 19% 21% Customer Deposits 30% 11% Gross Turnover SB 45% 19% • Increase in active customers due to higher activity and different market activities. The measure active customers shall be seen in a lo
Slide 27: Active customers
Active customers 350 288 700 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 • + 72% compared to Q4 2008 • + 31% compared to Q3 2009
Slide 28: Registered customers
Registered customers 2500 2 117 800 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 • + 41% compared to Q4 2008 • + 10% compared to Q3 2009 •28
Slide 29: Sportsbook margins
Sportsbook margins 2009 2008 2009 2009 2008 Q4 Q4 Q3 FY FY Gross Turnover SB 755.3 520.9 634.9 2571.5 1567.1 Gross Margin SB¹ 10.9% 11.8% 6.5% 8.0% 10.1% Gross Profit 82.0 61.7 41.4 206.6 159.0 1) Margin after direct and allocated costs
Slide 30: Live betting increases
Live betting increases Q4 2009 Q4 2008 13% 61 % 31% 33% 54% 24% Pre-match betting 69% 76% Live betting Share of Gross Turnover in Sportsbook
Slide 31: Legal
2010-02-11 Betsson Legal "4 betsson gx
Slide 32: Legal
Legal Regulation proposed to be implemented in April 2010 Time plan delayed, as expected, and still uncertainties about the final terms and conditions. Government informed the parliament recently that no changes to existing gaming legislation will be conducted before the election in september 2010.
Slide 33: Legal
Legal Continued discussions about legalising internet gaming both on federal and state level. California discusses legalization of Poker. Similar discussions in New Jersey and Florida. Belgium plans a new legislation where exisiting land based casinos and other gaming establishments may get licensed
Slide 34: Events after Q4
2010-02-11 Betsson Events after Q4
Slide 35: Events after the fourth quarter
Events after the fourth quarter • Revenues in January in line with average monthly revenue in fourth quarter • Betsson Shop in Stockholm reopened in January • Betsson Business entity launched to focus on co-operations with partners, visit betssonbusiness.com • New version of CherryCasino.com launche
Slide 36: Betsson Business Solutions
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Slide 37: New version of CherryCasino.com launched!
New version of CherryCasino.com launched!
Slide 38: High level outlook
High level outlook • Internet penetration still on very strong growth • Penetration 52% in Europe and 25% of world population • European broadband penetration around 30% • B2B-sector looks promising • Markets outside of Europe – great potential • All in all – plenty of opportunities!
Slide 39: Q&A
Q&A What's your thrill? - betsson 9x