Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2018 Earnings Presentation
12 slides from Betsson Ab Class B's earnings presentation, 2018
Slide 1: Q2 2018
Q2 2018 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q2
HIGHLIGHTS Q2 — Solid growth in both Casino and Sportsbook — Casino revenues exceeding SEK 1 bn for the first time — High customer activity due to World Cup — Continue to follow back on track-plan — Improved efficiencies — Improved product offering — EBIT at an all-time high Sponsorship Betsson of C
Slide 3: Financial Summary Q2
FINANCIAL SUMMARY Q2 — Revenue grew 14% SEK m Q2 2018 Q2 2017 Change FY 2017 — 11% organic growth Revenue 1,346 1,177 14% 4,717 — Casino revenue grew 16% Gross profit 968 851 14% 3,419 — Sportsbook revenue grew 17% — Sportsbook margin 6.3% Gross margin 71.9% 72.3% 72.5% — Sportsbook revenue related
Slide 4: Strong growth in underlying activity
STRONG GROWTH IN UNDERLYING ACTIVITY 800 Active customers 5 000 Deposits 4 500 700 4 000 600 3 500 500 3 000 SEK m 000's 400 2 500 2 000 300 1 500 200 1 000 100 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 5: Revenue by region
REVENUE BY REGION +14% Revenue, Q2 2018 26 92 (12) 63 5% 16% SEK m 1 346 Nordics 46% 1 178 Western Europe CEECA RoW RoW Nordics Revenue Q2 '17 Revenue Q2 '18 CEECA Western Europe 33% +11% +26% -5% 65% 5
Slide 6: Sportsbook development
SPORTSBOOK DEVELOPMENT — Sportsbook revenue grew 17% Sportsbook, turnover 8 000 10% — Sportsbook gross turnover grew 8% 6 000 8% SEK m — Organic gross turnover growth 16% 4 000 6% 2 000 — Sportsbook margin at 6.3% (6.4%) 0 4% — Eight quarter rolling average 6.9% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 20
Slide 7: FIFA World Cup 2018
FIFA WORLD CUP 2018 — Sportsbook revenue related to the FIFA World Cup was 3.7% of total revenues in Q2 — Final rounds will be included in Q3 report — High customer intake related to the World Cup Product improvements — Launch of BetBuilder on core brands — 230+ pre-match markets — Improvements in s
Slide 8: Casino development
CASINO DEVELOPMENT — Casino growth 16% Casino, revenue — Organic growth 12% 1 000 — 11% growth in the Nordics 800 — 27% growth in Western Europe 600 SEK m — Improved Live Casino offering with dedicated Scandinavian tables 400 200 0 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2
Slide 9: Regulatory update
REGULATORY UPDATE — Re-regulation of the Swedish gambling market on 1 January 2019 — New Dutch Government taken initiative to revive the process of re-regulating the gambling market — Italian government proposed a ban on gambling advertising 2004 2011 2012 2015 2016 2017 Malta Italy Estonia Great Ir
Slide 10: Back on track plan
BACK ON TRACK PLAN — 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 Product & Culture & E
Slide 11: Summary
SUMMARY — Continued improvements of product and technology — Roll-out of OBG app on core brands continue — Focus on efficiencies in all areas — Preparing for re-regulation of the Swedish gaming market 11
Slide 12: Betsson AB
betsson ab