Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2018 Earnings Presentation
13 slides from Betsson Ab Class B's earnings presentation, 2018
Slide 1: Q1 2018
Q1 2018 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q1
HIGHLIGHTS Q1 — Continued Casino growth in Western Europe — Continued positive development in Sportsbook — 22% growth in the Nordics — Organisational restructure to increase efficiency implemented Sponsorship Betsson of Conor app built McGregor on OBG drove growth in active players. framework 2
Slide 3: Financial Summary Q1
FINANCIAL SUMMARY Q1 — Revenue increased by 10% SEK m Q1 2018 Q1 2017 Change FY 2017 — 4% organic growth Revenue 1,210 1,102 10% 4,717 Gross profit 864 806 7% 3,419 — Gross profit impacted by increased betting duties and licence fees to game providers Gross margin 71.4% 73.2% 72% — 25.6% of revenue
Slide 4: Organic Development
ORGANIC DEVELOPMENT Impact from Q1 2018 acquisitions the Q1 2018 SEK million Organic Currency effects last 12 months1) Reported Revenue 1,149 +7.4 +53.5 1,210 Revenue growth 4% 10% Operating income (EBIT) 242 -15.3 -15.2 211 EBIT growth 0% -12% Operating margin 21.1% 17.5% 1) Acquired entities inclu
Slide 5: Revenue by Region
REVENUE BY REGION Revenue, Q1 2018 +10% 3% 108 38 18% (37) (1) 47% SEK m 1,210 1,102 RoW Nordics Revenue Q1 '17 Revenue Q1 '18 CEECA Western Europe 32% Nordic Western Europe CEECA RoW +7% +39% -15% -3% 5
Slide 6: Sportsbook Development
SPORTSBOOK DEVELOPMENT — Sportsbook revenue +5% Y/Y 8 000 Sportsbook, turnover & margin 10% — Sportsbook gross turnover SEK 5.8 bn (6.0) 6 000 8% 6% SEK m — Sportsbook margin at 6.6% (6.1) 4 000 4% 2 000 2% 0 0% — Increased number of games traded and Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q
Slide 7: Casino Development
CASINO DEVELOPMENT — Casino growth 12% Casino, revenue — Organic growth 5% 1 000 900 800 — Casino growth hampered by slow development in the Nordics 700 600 SEK m 500 — Roll-out of OBG front-end framework on desktop and apps during 2018 400 300 200 100 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 20
Slide 8: Product Update
PRODUCT UPDATE — Betsson’s Casino now offers 2,700 different games, of which >2,000 on mobile — Betsson added markets in football and other major sports — Increased live offering in e-sports — Ensuring compliance with GDPR Proprietary Betsson game 8
Slide 9: Personnel Development
PERSONNEL DEVELOPMENT — Restructuring reduced headcount by 160 Number of employees at end of period — Outsourcing in Georgia reduced headcount 2000 1821 1873 by 84 1800 1639 1600 1567 — Personnel cost going forward expected to 1400 be below SEK 200 m per quarter in 2018 1200 1000 857 870 800 600 400
Slide 10: Regulatory Update
REGULATORY UPDATE — Re-regulation of the Swedish gambling market — Re-regulation of gambling market in the Netherlands still on hold — Betsson has received an infringement report from the Dutch regulator alleging Betsson’s infringement of the 1964 Dutch Betting and Gaming Act — Government’s ambition
Slide 11: Swedish Re-regulation
SWEDISH RE-REGULATION — Licences available for online casino, sportsbook and bingo — Tax rate 18% on GGR — Match fixing criminalised — Duty of care (omsorgsplikt) introduced — Government aims to achieve >90% channelization June 2018 1 January 2019 Vote in parliament Re-regulation come into effect 1
Slide 12: Focus Going Forward
FOCUS GOING FORWARD — Continued product improvements — Preparing for FIFA World Cup — Gearing up for re-regulation in Sweden — Strengthening operational team — Continued focus on efficiencies Betsson Group won the EGR Nordics Award for Best Customer Service Operator 2018 Exclusive game provided by N
Slide 13: betsson ab
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