Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2009 Earnings Presentation
35 slides from Betsson Ab Class B's earnings presentation, Nov 4, 2009
Slide 1: Presentation Q3 2009
2009-11-04 Presentation Q3 2009 Pontus Lindwall CEO and President
Slide 2: Agenda
Agenda • Introduction • Q3 financial presentation • Product and geographical split • Key Performance Indicators - Sportsbook margin - Customer deposits • Legal • Events after Q3 • Q&A 2
Slide 3: Introduction
2009-11-04 Betsson Introduction
Slide 4: Betsson is one of the leading European online gaming companies
Betsson is one of the leading European online gaming companies Betsson offers Sportsbook, Casino, Poker and other games on internet 4
Slide 5: Betsson
Betsson • 45 years of accumulated competence • 250 employees • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of € 400 000 000 • National monopolies make up primary competitors, secondary competitors include Unibet, Ladbrokes, Expekt, Bwin and similar •5
Slide 6: Login
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Slide 7: Forgot password
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Slide 8: SverigeAutomaten.com
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Slide 9: Promote our brands!
Promote our brands! Rapid growth and reliability g and realtime tracking
Slide 10: High Growth and Profitability
High Growth and Profitability Revenue Growth EBIT-margin 2007 121 % 29.3 % 2008 60 % 26.7 % 2009 28 % 24.4 % (Q1-Q3) • Outperforming both market growth and competitors •10
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 11
Slide 12: Shareholder value increase
100,0 120,0 20,0 40,0 60,0 80,0 0,0 jan-06 feb-06 mar-06 apr-06 maj-06 jun-06 jul-06 bwin aug-06 sep-06 Betsson okt-06 nov-06 dec-06 jan-07 feb-07 888 mar-07 apr-07 maj-07 Source: Factset, SEB Enskilda William Hill jun-07 jul-07 aug-07 sep-07 okt-07 nov-07 dec-07 Ladbrokes Sportingbet jan-08 feb-08
Slide 13: Financial Presentation Q3 2009
2009-11-04 Betsson Financial Presentation Q3 2009
Slide 14: Q3 Highlights
Q3 Highlights • Revenues increased 26% to SEK 316.7 million (252.0 ) • Operating income increased 17% to SEK 79.4 million (67.8) • EPS SEK 1.93 (1.62) Numbers in gray = Q3 2008 14
Slide 15: Q3 Highlights
Q3 Highlights • Operating margin 25.1% (26.9) • Active customers increased 74% to 220 900 (127 300) • Cash by end of period SEK 396.0 million (213.5) • Betsson has launched streaming and mobile betting – two important innovations for our Sportsbook Numbers in gray = Q3 2008 15
Slide 16: Revenues
Revenues Higher volatility as Sportsbook increases High SB-margin Low SB-margin 16
Slide 17: Quarter on quarter
Quarter on quarter • Revenues increased 11% to SEK 316.7 million (284.6) • Operating income increased 29% to SEK 79.4 million (61.6) • Active customers increased 19% to 220 900 (185 300) Numbers in gray = Q2 2009 17
Slide 18: Product and geographical split
2009-11-04 Betsson Product and geographical split
Slide 19: Gross profit per product segment
Gross profit per product segment Growth (%) Other + 36 (Y) + 36 (Q) Sportsb. + 27 (Y) + 60 (Q) Poker - 25 (Y) - 14 (Q) Casino + 36 (Y) + 9 (Q) 19
Slide 20: Gross profit per product Q3
Gross profit per product Q3 Other products 4% Sportsbook 16% Poker Casino 11% 69% 20
Slide 21: Gross profit per geographical area
Gross profit per geographical area Growth (%) RoW + 171 (Y) + 138 (Q) EU + 54 (Y) non Nordic - 1 (Q) Non EU + 17 (Y) and Turkey + 30 (Q) Nordic + 21 (Y) + 9 (Q) 21
Slide 22: Gross profit per geographical area Q3
Gross profit per geographical area Q3 Non Nordic EU countries 13% Nordic Rest of Europe 26% 61 % countries non EU members and Turkey Rest of the world 0,8 % 22
Slide 23: Key Performance Indicators
2009-11-04 Key Performance Indicators SB Margins Deposits
Slide 24: Growth indicators
Growth indicators Growth Q3 2009 Y/Y Q/Q Active Customers 74 % 19 % Registred Customers 42 % 8% Revenues 26 % 11 % Customer Deposits 41 % 5% Gross Turnover SB 78 % - 2% • Increase in active customers due to higher activity and different market activities. The measure active customers shall be seen i
Slide 25: Active Customers
Active Customers 220.9 • + 74% compared to Q3 2008 • + 19% compared to Q2 2009 25
Slide 26: Registered Customers
Registered Customers 1 916.7 • + 42% compared to Q3 2008 • + 8% compared to Q2 2009 26
Slide 27: Sportsbook margins
Sportsbook margins 2009 2008 2009 2009 2008 Q3 Q3 Q2 Q1–Q3 Q1–Q3 Gross Turnover SB 634.9 356.0 644.8 1816.2 1046.2 Gross Margin SB¹ 6.5 % 9.1 % 4.0 % 6.9 % 9.3 % Gross Profit 41.4 32.5 25.8 124.6 97.3 1) Margin after direct and allocated costs 27
Slide 28: Legal
2009-11-04 Betsson Legal "4 betsson gx
Slide 29: Legal
Legal The French National Assembly voted in October in favour of adopting a bill to regulate the online gaming market. Limited impact on Betsson’s revenues regardless of the outcome. Nothing expected to happen before the Swedish election in September 2010. No news during the quarter in Turkey. No ne
Slide 30: Legal
Legal The US consider opening the market for internet gaming. Potuguese monopoly Santa Casa won a court case in Europen Court against bwin in September. Not clear in what extent this verdict is relevant on an European level.
Slide 31: Events after Q3
2009-11-04 Betsson Events after Q3
Slide 32: Events after the third quarter
Events after the third quarter October was a strong month, generating a new all time high game win. During October Betsson has entered a partner deal with the company 9Live, which is a subsidiary to one of the biggest media houses in Germany, Prosieben Sat1. Betsson offers gaming solution on www.bet
Slide 33: Betsson TV – Die Show
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Slide 34: Betsson TV – Die Show
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Slide 35: Q&A What's your thrill?
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