Slide 1: Presentation Q4 2015
PRESENTATION Q4 2015 Q4 2015 FOURTH QUARTER REVENUES GREW 28%
Slide 2: Q4 2015 Highlights
Q4 2015 HIGHLIGHTS Revenues of SEK 1,041.1 million (+28%) Organic growth (constant currency) +18% Gross turnover, Sportsbook +27% Mobile revenue +100% Deposits +17%
Slide 3: Betsson pays tax to German authorities
BETSSON PAYS TAX TO GERMAN AUTHORITIES Betsson believes in the German market and intends to apply for a gaming license when possible The sports betting tax is 5% (based on turnover) Betsson Malta is submitting returns for historic tax on sports betting of total ~SEK 113 million (1 July 2012- 3
Slide 4: German tax – what this looks like
GERMAN TAX – WHAT THIS LOOKS LIKE BETSLIP (BETSAFE) BET CONFIRMATION 1 2 Bet confirmation 5 cent of the actual shows the same tax stake (1 EUR) is allocated information as the to tax betslip did so the customer remains aware of the tax
Slide 5: Re-classifications: German tax effects on P&L
RE-CLASSIFICATIONS GERMAN TAX EFFECTS ON P&L Including German tax Excluding German tax Income Statement, SEK million Q4 2015 Q4 2015 SEK m SEK m Revenue 1041.1 1041.1 Cost of services provided -257.1 -257.1 Non-recurring items (1 July 2012-31 Sept 2015) -103.8 0 Accrued item (1 October 2015-31 Decem
Slide 6: Business Update
PRESENTATION Q4 2015 BUSINESS UPDATE
Slide 7: Multi brand and one platform
MULTI BRAND AND ONE PLATFORM Products Platform Brands Business to Consumers (B2C) Techsson Business to Business (B2B)
Slide 8: Oranje Casino to Techsson
ORANJE CASINO TO TECHSSON Another successful migration o New improved registration page o New mobile website o Extra deposit & withdrawal methods o Tools to trace valuable transaction information o New game providers o Improved UX across the site
Slide 9: A complete new sportsbook on Betsson.com
A COMPLETE NEW SPORTSBOOK ON BETSSON.COM Front-end improvements Improved navigation and quick links Updated Lobby & Homepage Experience Back-end improvements Enables features and functionality for all Betsson Group Brands Increase SEO value The new sportsbook on Betsson.com – An experience t
Slide 10: A complete new sportsbook on Betsson.com
A COMPLETE NEW SPORTSBOOK ON BETSSON.COM A 82.7% 90 B Acceptable 80 C 70 Industry average 65% D Marginal 60 50 Customer Centric Approach to Design F 40 30 Betsson received a System Usability Scale Score Unacceptable (satisfaction metric) of 82.7%, which is substantially 20 higher than the industry a
Slide 11: Mobile Update
MOBILE UPDATE Revenue amounted to SEK 373.3 million 36 percent of total revenues in Q4 - Growth of 100 percent Release of iOS App NordicBet.dk
Slide 12: Mobile Development
MOBILE DEVELOPMENT SEK m +100% 400 40% 350 35% 300 30% 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Mobile reveune % of total revenue
Slide 13: Mobile Sportsbook Turnover
MOBILE SPORTSBOOK TURNOVER 60% 55% 56% 55% 50% 48% 43% 40% 40% 30% 20% 10% 0% Q3 Q4 Q1 Q2 Q3 Q4 2014 2015
Slide 14: Q4 Europe-Bet
Q4 EUROPE-BET Contributed with SEK 96.1 million in revenues Growth of 27 percent (local currency) Operating income of SEK 21.8 million *Europe-Bet grew by 21 percent in SEK
Slide 15: Financial Highlights
PRESENTATION Q4 2015 FINANCIAL HIGHLIGHTS
Slide 16: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS Revenues of SEK 1041.1 (814.7) million Total growth of 28 percent Organic growth amounted to 18 percent (constant currency) Figures in brackets refer to the same period last year
Slide 17: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS EBIT of SEK 174.4 (252.5) million EBIT of SEK 286.9 million, if excluding German tax effect Figures in brackets refer to the same period last year
Slide 18: Revenues, 28% Growth
REVENUES, 28% GROWTH SEK m 1200 1,041.1 1000 800 600 400 200 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 19: Marketing of Total Revenue (%)
MARKETING OF TOTAL REVENUE (%) 25% 21% 21% 20% 19% 20% 18% 17% 15% 10% 5% 0% Q3 Q4 Q1 Q2 Q3 Q4 2014 2015
Slide 20: Product and Geographical Split
PRESENTATION Q4 2015 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 21: Revenue per Segment (%)
REVENUE PER SEGMENT (%) 19.3% (22.8%) B2B, Business to business B2C, Business 80.7% to consumers (77.2%) Figures in brackets refer to the same period last year
Slide 22: Revenue per Segment
REVENUE PER SEGMENT Actual (SEK m) Total Growth (%) B2C 840.6 34% B2B 200.5 8% Total Growth is referring to the same period last year
Slide 23: Revenue per Product
REVENUE PER PRODUCT 1.0% (1.6%) Casino Poker 30.0% (23.6%) 65.7% Sportsbook (71.2%) 3.3% Other (3.6%) Figures in brackets refer to the same period last year
Slide 24: Revenue per Geography (B2C)
REVENUE PER GEOGRAPHY (B2C) 12.9% (1.1%) Nordic Region 56.0% Other Europe (71.0%) 30.6% EU, outside Nordic region (27.6%) Rest of the world 0.5% (0.4%) Figures in brackets refer to the same period last year
Slide 25: Key Performance Indicators
PRESENTATION Q4 2015 KEY PERFORMANCE INDICATORS
Slide 26: Sportsbook Turnover
SPORTSBOOK TURNOVER SEK m +27% 7 000 9% 6 000 8% 7% 5 000 6% 4 000 5% 3 000 4% 3% 2 000 2% 1 000 1% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Gross turnover Margin after free bets (%)
Slide 27: Deposits – 17% Growth
DEPOSITS – 17% GROWTH SEK m 4 000 3,471 3 500 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 Q2 Q3 Q4 2011 2012 2013 2014 2015
Slide 28: Active Customers – 35% Growth
ACTIVE CUSTOMERS – 35% GROWTH Thousand 600 526 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015
Slide 29: Registered Customers
REGISTERED CUSTOMERS Thousand 10 000 9,022 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015
Slide 30: Legal Update
PRESENTATION Q4 2015 LEGAL UPDATE
Slide 31: Legal Update: The Netherlands
LEGAL UPDATE The Netherlands The proposed new Dutch legislation is still in the second chamber in the parliament waiting to be processed A political deal have been made between the ruling coalition partners to set both online and offline net tax of 29% A debate and vote in parliament is expect
Slide 32: Legal Update: Sweden and Portugal
LEGAL UPDATE Sweden – Timetable for new regulation Legislative process has been initiated and chairperson have been appointed Law proposal planned for Dec 2017 Start of new legislation planned for 1 July 2018 Portugal – Timetable for new regulation Betsson is preparing for the upcoming licen
Slide 33: Legal Update: Germany
LEGAL UPDATE Germany Existing legislation is constantly being questioned by the European Commission and by local politicians. A new ECJ judgement from this week (Ince, C 336/14), has confirmed such criticism and firmly ruled that the German sport betting regulation is contrary to EU Law. Polit
Slide 34: Events After Q4
PRESENTATION Q4 2015 EVENTS AFTER Q4
Slide 35: Events after end of the period
EVENTS AFTER END OF THE PERIOD Due to lower Sportsbook margins, the first quarter of 2016 started with revenue under the daily average for the fourth quarter of 2015. The underlying activity follows seasonal patterns In the beginning of 2016 Betsson opened a development center in London There
Slide 36: Save the date: Capital Markets Day 2016
CAPITAL MARKETS DAY 2016 Save the date Betsson’s yearly CMD is planned for 26 May 2016
Slide 37: Q&A
PRESENTATION Q4 2015 Q&A