Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2022 Earnings Presentation
17 slides from Betsson Ab Class B's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Presentation of results
Q3 2022 Presentation of results
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Business update ▪ Financials ▪ Trading update ▪ Regulatory update Pontus Lindwall Martin Öhman President & CEO, CFO, Betsson AB ▪ Summary Betsson AB ▪ Q&A 2
Slide 3: Q3 2022 Key Figures
Q3 2022 KEY FIGURES REVENUE EBIT CUSTOMER EBIT MEUR 200 MEUR 38 MARGIN NET DEBT DEPOSITS +18% YoY +21% YoY 19.2% MEUR -55 MEUR 943 +35% organic +24% YoY CASINO CASINO SPORTSBOOK SPORTSBOOK TURNOVER REVENUE TURNOVER REVENUE +29% +45% +14% +8% YoY YoY YoY YoY 3 All-Time High
Slide 4: Existing Markets – Some Activities
EXISTING MARKETS – SOME ACTIVITIES EXISTING MARKETS NEW MARKETS B2B M&A ITALY: signed new Launched new sportsbook under sponsorships with local brand StarCasinò Bet Palermo and Salernitana Total of six club sponsorships NORDICS: LITHUANIA: Launched new concept and new Extended Betsafe-LKL brand iden
Slide 5: New Markets – Some Activities
NEW MARKETS – SOME ACTIVITIES EXISTING MARKETS NEW MARKETS B2B M&A GREECE: LATAM: Launch of Betsson Foundation Mexico: Technical go-live in August New sponsorship New Betsson brand with Athletico ambassadors: Zé Sponsoring of Acropolis Rally Paranaense in Roberto and Mario the Brazilian Yepes state
Slide 6: B2B & M&A – Acquisition of B2B Sportsbook
B2B & M&A – ACQUISITION OF B2B SPORTSBOOK EXISTING NEW MARKETS B2B M&A MARKETS —Acquisition of 80% of shares in B2B sportsbook business from TG Holdings Limited named KickerTech —Team of 50 professionals developing advanced odds models, trading technology and sportsbook features. Based in Vilnius, L
Slide 7: Product & Technology Development
PRODUCT & TECHNOLOGY DEVELOPMENT Launched new Strengthened offering Betsson sportsbook app in several key markets Cloud migration and Re-accredited with ISO native app development 27001:2013 certification continued the international standard for implementing an Information Security Management System
Slide 8: Industry Awards in the Third Quarter
INDUSTRY AWARDS IN THE THIRD QUARTER Casino Operator of the Year (gold) Company of the Year Best Affiliate Program (gold) Best Diverse Place to Work Western European Sportsbook of the Year (gold) Innovation in Employee Engagement Best Marketing Campaign (silver) 8
Slide 9: Spreading Awareness
SPREADING AWARENESS RESPONSIBLE GAMING DIVERSITY AND INCLUSION RG campaign in We want to be the pioneers in helping ignite discussion about Greece to diversity and inclusion in the industry and therefore Betsson encourage hosted two more Diversity and Inclusion Conferences – one in Athletes should g
Slide 10: Development and KPIs
DEVELOPMENT AND KPIs Active customers (000s) Revenue (MEUR) 250 1 400 +18% 1 200 +7% 200 ATH revenue of 1 000 150 MEUR 200.3 800 600 +35% organic 100 400 YoY 200 50 0 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 0 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 Other 1% Customer deposits (MEU
Slide 11: Revenue Development by Region YoY
REVENUE DEVELOPMENT BY REGION YOY +18% +35% ROW 1 29 2% 14 0 Nordic 26 11 27% CEECA MEUR 39% 229 200 170 Latin America Western 19% Europe 13% Q3 21 revenue Nordics Western CEECA LatAm Rest of world Q3 22 FX and M&A Q3 22 organic Europe reported effects revenue revenue 11
Slide 12: EBIT Development YoY
EBIT DEVELOPMENT YOY +21% EBIT EBIT Margin Margin 18.7% 19.2% 6 7 MEUR 30 7 1 3 38 32 Q3 21 EBIT Revenue Cost of Services Marketing Personnel D&A Other Costs Q3 22 EBIT Sold Expenses Expenses 12
Slide 13: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION — Operating cash flow MEUR Q3 2022 Q3 2021 — Negative impact from working capital due to increase in payment service providers balances Operating cash flow 38.5 41.4 — Investments — Investments in own development (capitalisation) and Cash flow from investing -9.1 -14.8
Slide 14: Q4 2022 Trading Update
Q4 2022 TRADING UPDATE* Average daily revenue until 24 October was 38% higher than the average daily revenue of the full Q4 2021 Q4 The average organic daily revenue was 44% higher than the average daily revenue of the full Q4 2021 During this period, the sportsbook margin has been somewhat higher t
Slide 15: Regulatory Update
REGULATORY UPDATE NORWAY PERU ARGENTINA NETHERLANDS ONTARIO (CAN) Betsson submitted Regulator (KSA) still October 31, 2022 has Complaint against New gaming law license application in reviewing applications been set as deadline cease-and-desist passed in parliament province of Cordoba from Betsson’s
Slide 16: Summary Q3
SUMMARY Q3 ▪ ATH revenue and EBIT for the Group ▪ 35% organic revenue growth Y/Y ▪ Record turnover and revenue in casino and sportsbook ▪ Latin America and CEECA growth drivers ▪ Good profitability despite no NL revenue ▪ Strong balance sheet and cash flow generation ▪ Acquisition of B2B sportsbook
Slide 17: Thank You
betsson ab THANK YOU TIME FOR Q&A