Slide 1: Q3 2018
Q3 2018 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q3
HIGHLIGHTS Q3 — All Time High in revenue: SEK 1.427 m — Growth across all regions — Mobile revenue grew 42% — All Time High in EBIT: SEK 340 m — Efficiencies continue showing effect — Application for licences in Sweden submitted 2
Slide 3: Financial Summary Q3
FINANCIAL SUMMARY Q3 — Revenue grew 21% SEK m Q3 2018 Q3 2017 Change FY 2017 — 16% organic growth Revenue 1,427 1,181 21% 4,717 — Casino revenue grew 22% Gross profit 1,010 859 18% 3,419 — Sportsbook revenue grew 23% Gross margin 70.8% 72.8% 72.5% — Sportsbook margin 7.4% EBITDA 424 285 49% 1,150 —
Slide 4: Back on Track plan still on track
BACK ON TRACK PLAN STILL ON TRACK — Back on track plan put in place in Q4 2017 Growth in core — Built around four areas with culture and markets organisation at the core — Pillars of the plan: — Improve products and performance — Turnaround growth trends in core markets — Improve efficiencies Produc
Slide 5: Product & Technology
PRODUCT & TECHNOLOGY — OBG on mobile on all core brands — Roll-out of OBG on desktop will start towards end of year — Top class sports coverage — Larger football offering — 230+ pre-match markets — 100+ live markets — New functionality — Betbuilder, Price boost, Premium visualisation — 2,700 casino
Slide 6: Growth across all regions
GROWTH ACROSS ALL REGIONS +21% Revenue, Q3 2018 32 91 18 5% 106 17% SEK m 1 427 Nordics 47% Western Europe 1 181 CEECA RoW RoW Nordics Revenue Q3 '17 Revenue Q3 '18 CEECA Western Europe 31% +19% +26% +8% +80% 6
Slide 7: Efficiencies improve profitability
EFFICIENCIES IMPROVE PROFITABILITY 1600 30% 1400 25% 1200 20% 1000 SEK m 800 15% 600 10% 400 5% 200 0 0% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Axis Title Revenue EBIT margin 7
Slide 8: Sportsbook development
SPORTSBOOK DEVELOPMENT — Sportsbook revenue grew 23% 7 000 Sportsbook, turnover 9% 8% 6 000 — 1.8% of revenue related to FIFA World Cup 5 000 7% 6% 4 000 SEK m 5% — Sportsbook gross turnover grew 14% 3 000 4% 3% 2 000 — Organic gross turnover growth 26% 1 000 2% 1% 0 0% — Sportsbook margin at 7.4% (
Slide 9: Casino development
CASINO DEVELOPMENT — Casino growth 22% Casino, revenue — Organic growth 16% 1 000 — Improved Live Casino offering with 800 dedicated Nordic tables — Increased revenue from proprietary games 600 SEK m 400 200 0 Q1 2018 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q2 2018 Q3 2018 9
Slide 10: Regulatory update
REGULATORY UPDATE — Licences in 11 jurisdictions — 23% of revenue is locally taxed — Applications for licences in Sweden submitted — Re-regulation of gambling market in the Netherlands possible in 2020 — Corona Ltd. has appealed fines — States in the U.S. opening up for online 2004 2011 2012 2015 20
Slide 11: Summary
SUMMARY — Continued improvements of product and technology — Roll-out of OBG for desktop starts towards end of 2018 — Focus on efficiencies in all areas — Preparing for re-regulation of the Swedish gaming market Betsson submitted Swedish licence applications on 1 August. 11
Slide 12: Betsson AB
betsson abo