Slide 1: Presentation Q1 2011
Presentation Q1 2011 Pontus Lindwall CEO
Slide 2: Betsson agenda
Betsson • Introduction • Financial Presentation • Product and Geographical Split • Key Performance Indicators - Sportsbook margin - Customer deposits • Legal • B2B • Events after Q1 • Q&A
Slide 3: Introduction
Betsson Introduction t "4 betsson gx
Slide 4: Betsson
Betsson • 48 years of accumulated competence • 278 employees • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of approximately € 500 000 000 • Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Expekt, Bwin and similar
Slide 5: Betsson website screenshot
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Slide 6: BALANCE (kr) TOTAL BET
L: = ~~ 2 BALANCE (kr) TOTAL BET rn nm
Slide 7: CasinoEuro
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Slide 8: SverigeAutomaten.com
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Slide 9: Sahkoposti
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Slide 10: Cherry Casino
if @® Cherry Casino Promote our brands!
Slide 11: High Growth and Profitability
High Growth and Profitability Revenue Growth EBIT-margin 2007 121% 29.3% 2008 60% 26.7% 2009 25% 24.4% 2010 23% 23.7% 2011 (Q1) 14% 31.6% • High growth in combination with strong margins • Manage to ”invest during operation”, constantly investing in IT-infrastructure and partnerships while managing
Slide 12: Financial Presentation Q1 2011
Betsson Financial Presentation Q1 2011
Slide 13: Q1 Highlights
Q1 Highlights • Revenues increased by 14% to SEK 417.4 M (367.7) • Growth in game win in all of Betsson´s gaming solutions amounted to 25% • Operating income increased by 57% to SEK 131.8 M (84.2) • Operating margin was 31.6% (22.9) Numbers in gray = Q1 2010
Slide 14: Q1 Highlights
Q1 Highlights • Gross turnover in Live betting in Sportsbook, in all of Betsson´s gaming solutions, amounted to SEK 1,119.4 (385.2) million, equivalent to an increase of 191% • The divestment of the Turkish client base was completed during the quarter according to plan, which positively impacted the
Slide 15: Q1 Highlights
Q1 Highlights • Customer deposits increased by 16% • Earnings per Share SEK 3.19 (2.04) • Cash by end of period SEK 535.8 M (520.4) Numbers in gray = Q1 2010
Slide 16: Revenues
M SEK Revenues 600 500 417.4 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 2011
Slide 17: Product and geographical split
Betsson Product and geographical split
Slide 18: Gross Profit per Product
Gross Profit per Product M SEK 450 400 350 Other 300 250 Platform 200 Poker 150 Sportsbook 100 Casino 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011
Slide 19: Gross Profit per Product
Gross Profit per Product Casino Sportsbook Poker Other Platform Q1 2011
Slide 20: Gross Profit per Geographical Area
Gross Profit per Geographical Area M SEK 450 400 350 Growth (%) 300 Rest of World +16 (Y) +22 (Q) 250 Platform -4 (Y) 200 EU, outside Nordic -6 (Q) 150 +2 (Y) Other Europe -46 (Q) 100 Nordic Countries -4 (Y) -5 (Q) 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011
Slide 21: Gross Profit per Geographical Area
Gross Profit per Geographical Area Nordic Countries Other Europe EU, outside Nordic region Rest of the world Platform Q1 2011
Slide 22: Key Performance Indicators
Key Performance Indicators SB Margins Deposits
Slide 23: Growth Indicators
Growth Indicators Growth Q1 2011 Y/Y Q/Q Active Customers 5% 12% Registered Customers 15% -12% Revenues 14% -14% Customer Deposits 16% 2% Gross Turnover SB 76% -6% • The measure “Active Customers” shall be seen in a longer perspective
Slide 24: Active Customers
Active Customers 400 335 500 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 • +5% compared to Q1 2010 • +12% compared to Q4 2010
Slide 25: Registered customers
Registered customers 3 500 2 786 800 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 • +15% compared to Q1 2010 • -12% compared to Q4 2010
Slide 26: Sportsbook Margins (Betsson.com)
Sportsbook Margins (Betsson.com) 2011 2010 2010 2010 2009 Q1 Q1 Q4 FY FY Gross Turnover SB 1210.1 1012.8 1894.1 5355.7 2571.5 Gross Margin SB¹ 6.8% 7.1% 6.8% 6.9% 8.0% Gross Profit 82.7 72.0 128.2 367.7 206.6 1) Margin after direct and allocated costs
Slide 27: Live Betting Increases – Fueling Betting Turnover
Live Betting Increases – Fueling Betting Turnover Q1 2011 Q1 2010 Pre-match betting Live betting Share of Gross Turnover in Sportsbook
Slide 28: Legal
Betsson Legal t "4 betsson gx
Slide 29: Legal
Legal NAFTA Open minded Protectionistic (Time) Neglect Forbid Regulate Harmonize Not sustainable • Regulate more games More sustainable • Less protectionistic/global understanding • Sustainable tax levels • ECJ vs monopolistic arguments
Slide 30: Legal
= il Legal The US Department of Justice indicted eleven representatives from PokerStars, Full Tilt Poker and Absolute Poker for illegal gambling, money laundering and bank fraud. The DOJ also froze 75 bank accounts connected to the business of these networks. The networks have since then shut down t
Slide 31: Legal
Legal Finland’s gambling reforms came into effect on October 1 2010. At the moment, no further actions is known Payment ban was implemented June 1, 2010. At the moment, no further actions to be undertaken. The Norwegian gaming monopoly has been granted permission by the government to expand its onli
Slide 32: B2B
Betsson B2B betsson BUSINESS SOLUTIONS @ t "4 betsson x WHAT'S YOUR THRILL?
Slide 33: Betsson's B2B-Strategy – For Distant Markets
Betsson's B2B-Strategy – For Distant Markets
Slide 34: B2B developments in accordance to plan
B2B developments in accordance to plan
Slide 35: Events after Q1
Betsson Events after Q1 t "4 betsson gx
Slide 36: Events after the first quarter
Events after the firth quarter
Slide 37: What's your thrill?
What's your thrill? - betsson' 9x