Slide 1: Presentation Q2 2011
Presentation Q2 2011 Magnus Silfverberg CEO
Slide 2: Betsson agenda
Betsson • Introduction • B2C, Business to Consumers • B2B, Business to Business • Financial Presentation – Q2 Highlights – Product and Geographical Split – Key Performance Indicators • Legal • Events after Q2 • Q&A
Slide 3: Introduction
Betsson Introduction t "4 betsson gx
Slide 4: Betsson at a glance
• 48 years of accumulated competence • 385 employees • Two segments; B2B, Business to business and B2C, Business to consumers • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of approximately SEK 6 billion • Betsson competes with national monopolies but also with peers, such as Unibet, Lad
Slide 5: 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 (H1) 3% (25%*) 31.0% • High growth in combination with strong margins • Manage to ”invest during operation”, constantly investing in IT-infrastructure and partnerships while man
Slide 6: B2C, Business to Consumers
aie a Betsson B2C, Business to Consumers t "4 betsson gx WHAT'S YOUR THRILL?
Slide 7: Chase your thrill at Betsson
B2C Chase your theil at Betsson! Sportsbook, Ca
Slide 8: The Betsafe Acquisition
The Betsafe Acquisition betsafeXcom —betsson POKER - BETTING - CASINO WIN ON ALMOST ANYTHING Betsson strengthens its position in the Nordics Betsson strengthens its B2C business Betsson acquires a strong management team and a pool of talent 119% revenue growth 2010/2009 Betsafe has contributed to th
Slide 9: B2B, Business to Business
aie a Betsson B2B, Business to Business t "4 betsson gx WHAT'S YOUR THRILL?
Slide 10: Betsson Business Solutions
betsson: Home Aboutus Partnership Products erations BUSINESS SOLUTIONS fe * — YOUR ONLINE GAMING PARTNER Betsson Business Solutions is a dedicated business area within the Betsson Group, acting as an independent B2B division for all our brands and products. WHO WE ARE HOW WE WORK WHAT WE OFFER
Slide 11: B2B Franchisee betsson.com
B2B NorgesAut@maten.com ey Eu pe bss pe Franchisee betsson.com
Slide 12: B2B developments in accordance to plan
B2B developments in accordance to plan
Slide 13: Financial Presentation Q2 2011
Betsson Financial Presentation Q2 2011
Slide 14: Q2 Highlights
Q2 Highlights • Revenues of SEK 338.2 M (366.1) and the operating margin amounted to 30.4% (24.0) • Growth in Game win in all of Betsson´s gaming solutions (including B2B collaborations) amounted to 24% • Operating income increased by 17% to SEK 102.7 M (88.0) • Income has been negatively impacted b
Slide 15: Q2 Highlights
Q2 Highlights • Gross turnover in Live betting in Sportsbook, in all of Betsson’s gaming solutions, amounted to SEK 1,119.5 (699.7) million, equivalent to an increase of 71% compared with the previous year’s strong second quarter • Customer deposits increased by 26% • Earnings per Share SEK 2.47 (2.
Slide 16: Interim report
Interim report • Revenues increased by 3% to SEK 755.6 M (733.8) • Operating income increased to SEK 234.5 M (172.2), an increase of 36% • Operating margin 31.0% (23.5) • Earnings per Share SEK 5.66 (4.18) Numbers in gray = H1 2010
Slide 17: Revenues
Revenues M SEK 600 500 400 338.2 300 200 100 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 Q2 2005 2006 2007 2008 2009 2010 2011
Slide 18: Product and geographical split
Betsson Product and geographical split
Slide 19: Gross Profit per Segment
Gross Profit per Segment B2B, Business to business B2C, Business to consumers Q2 2011
Slide 20: Gross Profit per Product
Gross Profit per Product M SEK 450 400 350 300 Other 250 Poker 200 150 Sportsbook 100 Casino 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2011
Slide 21: Gross Profit per Product
Gross Profit per Product Casino Sportsbook Poker Other Q2 2011
Slide 22: Gross Profit per Geographical Area (B2C)
Gross Profit per Geographical Area (B2C) Nordic Countries Other Europe EU, outside Nordic region Rest of the world Q2 2011
Slide 23: Key Performance Indicators
Key Performance Indicators t "4 betsson gx
Slide 24: Growth Indicators
Growth Indicators Growth Q2 2011 Y/Y Q/Q Active Customers 16% 0% Registered Customers 19% 25% Growth* 24% - Gross Turnover Sportsbook** 46% 0% Customer Deposits** 26% 2% • The measure “Active Customers” shall be seen in a longer perspective *Growth in Game win in all of Betsson´s gaming solutions **
Slide 25: Active Customers
Active Customers 400 335 900 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 • +16% compared to Q2 2010 • +0% compared to Q1 2011
Slide 26: Registered customers
Registered customers 3 500 3 229 500 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 2007 2008 2009 2010 2011 • +19% compared to Q2 2010 • +25% compared to Q1 2011
Slide 27: Sportsbook Margins
Sportsbook Margins 2011 Q2 2011 2010 2010 Third Party Q2 SB Q2 FY SB Gross Turnover SB 260.9 1544.1 1233.1 5355.7 Gross Margin SB 5.3% n.a. 7.4% 7.8% Gross Profit 6.4 34.9 78.0 367.7
Slide 28: Legal
Betsson Legal t "4 betsson gx
Slide 29: Legal
= i 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 th
Slide 30: Legal
Legal Swedish Court of Appeal (Hovratten) has acquitted two newspaper editors (Otto Sjoberg and Anders Gerdin) of charges that they allowed the unlawful advertising of foreign betting sites. The court concluded that the Lottery Act treats illegal games differently depending on whether they are organ
Slide 31: Legal
Legal In Spain, a bill recently adopted, designed to introduce licenses for online gaming operators. The tax rate is 25% of Net Gaming for casinos and equivalent levels of poker and sports betting. The proposed plan is in November 2011, which is highly uncertain Denmark postpones the start of its li
Slide 32: Events after Q2
Betsson Events after Q2 t "4 betsson gx
Slide 33: Events after the second quarter
Events after the second quarter
Slide 34: What's your thrill?
What's your thrill? - betsson' 9x