Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2012 Earnings Presentation
36 slides from Betsson Ab Class B's earnings presentation, 2012
Slide 1: Betsson AB Presentation Q2 2012
Betsson AB Presentation Q2 2012 Q2 2012 Revenues increased by 44 percent CEO Magnus Silverberg
Slide 2: Presentation Outline
Betsson AB Presentation Q2 2012 Presentation Outline Introduction B2C – Business to Consumers B2B – Business to Business Regulated Markets Q2 Highlights Legal Update Events after Q2 Q&A
Slide 3: Introduction
Betsson AB Presentation Q2 2012 Introduction
Slide 4: Betsson – 49 years in gaming
Betsson AB Presentation Q2 2012 Betsson – 49 years in gaming 610 employees + 232 full time consultants (the acquisition of NGG has contributed with 128) Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 980 000 000 Betsson competes with national monopolies but also with peers
Slide 5: Multi Supplier and Multi Brand Strategy
Betsson AB Presentation Q2 2012 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C) Proprietary Gaming Platform Business to Business (B2B)
Slide 6: Mobile Growth
Betsson AB Presentation Q2 2012 Mobile Growth Inhouse developed sportsbook Betsson has 21 different mobile solutions The average quarterly growth exceeds 100 percent Management estimate that mobile revenues will grow strongly over the coming 12 months
Slide 7: B2C - Business to Consumers
Betsson AB Presentation Q2 2012 B2C - Business to Consumers
Slide 8: Betsson AB Presentation Q2 2012
Betsson AB Presentation Q2 2012
Slide 9: B2B - Business to Business
Betsson AB Presentation Q2 2012 B2B - Business to Business
Slide 10: Betsson AB Presentation Q2 2012
Betsson AB Presentation Q2 2012
Slide 11: Regulated Markets
Betsson AB Presentation Q2 2012 Regulated Markets
Slide 12: Italy and Denmark
Betsson AB Presentation Q2 2012 Italy and Denmark The first gaming solution under own license on the Italian market was launched Betsson has launched a number of gaming solutions on the newly regulated Danish market – These developed strongly in the second quarter and showed an increase in deposits
Slide 13: Q2 Highlights
Betsson AB Presentation Q2 2012 Q2 Highlights
Slide 14: Euro 2012 gave ATH in SB Turnover
Betsson AB Presentation Q2 2012 Euro 2012 gave ATH in SB Turnover M SEK Sportsbook Turnover Development 3000 2500 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012
Slide 15: But Q2 had ATL in SB Margins
Betsson AB Presentation Q2 2012 But Q2 had ATL in SB Margins 2012 – Q2 2011 – Q2 2012 – Q2 2011 –Q2 3rd PARTY 3rd PARTY SEK million SB SB SB SB Gross Turnover SB 731.1 2,013.7 242.0 1,563.1 Gross Margin SB 4.0% 2.0% 4.1% 2.0% Gross Profit 29.4 39.5 10.0 31.5
Slide 16: Extra Strong Seasonal Pattern in Q2
Betsson AB Presentation Q2 2012 Extra Strong Seasonal Pattern in Q2 Margin Sportsbook Margins Development 14% 13% 12% 11% 10% 9% AVG. Q1, Q3, Q4 8% 7% 6% AVG. Q2 5% 4% 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012
Slide 17: Shift in SB Mix also Impact Margins
Betsson AB Presentation Q2 2012 Shift in SB Mix also Impact Margins Q2 2009 Q2 2012 Pre-match 35% 31% betting Live betting 65% 69% SEK 2,745m 1 905 SEK 645m 228 840 417
Slide 18: Q2 Highlights
Betsson AB Presentation Q2 2012 Q2 Highlights Revenues amounted to SEK 486.2 (338.2) million, equivalent to an increase of 44 percent Operating income amounted to SEK 109.5 (102.7) million, equivalent to an increase of 7 percent Operating margin amounted to 22.5 percent (30.4 percent) Numbers in gra
Slide 19: Q2 Highlights
Betsson AB Presentation Q2 2012 Q2 Highlights Earnings per Share SEK 2.54 (2.47) Deposits in all of Betsson’s gaming solutions amounted to SEK 1,505.1 (1,148.2) million, which represents an All Time High (ATH) and an increase of 31 percent Cash by end of period SEK 342.3 million (195.6) Numbers in g
Slide 20: Q2 Highlights
Betsson AB Presentation Q2 2012 Q2 Highlights Income has been negatively impacted by non- recurring costs amounting to SEK 10.0 million, which refers to acquisitions and distribution of shares Due to the acquisition, by the end of the quarter Betsson had an external credit amounting to SEK 431.8 mil
Slide 21: Revenues
Betsson AB Presentation Q2 2012 Revenues M SEK 600 486.2 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 2009 2010 2011 2012
Slide 22: Product and Geographical Split
Betsson AB Presentation Q2 2012 Product and Geographical Split
Slide 23: Gross Profit per Segment
Betsson AB Presentation Q2 2012 Gross Profit per Segment 28% B2B, Business to business B2C, Business to 72% consumers
Slide 24: Gross Profit per Product
Betsson AB Presentation Q2 2012 M SEK Gross Profit per Product 500 450 400 9.8 25.4 350 68.9 300 Other 250 Poker 200 Sportsbook 150 Casino 100 303.1 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2011 2012
Slide 25: Gross Profit per Product
Betsson AB Presentation Q2 2012 Gross Profit per Product 6% 2% Casino 17% Sportsbook Poker Other 75%
Slide 26: Gross Profit per Geographical Area (B2C)
Betsson AB Presentation Q2 2012 Gross Profit per Geographical Area (B2C) 1% 17% 0,5% Nordic Countries Other Europe EU, outside Nordic region Rest of the world 82%
Slide 27: Key Performance Indicators
Betsson AB Presentation Q2 2012 Key Performance Indicators
Slide 28: Active Customers
Betsson AB Presentation Q2 2012 Active Customers Thousand 600 508 700 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012
Slide 29: Registered Customers
Betsson AB Presentation Q2 2012 Registered Customers Thousand 6 000 5 418 000 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 Q1 Q2 2007 2008 2009 2010 2011 2012
Slide 30: Growth Indicators
Betsson AB Presentation Q2 2012 Growth Indicators Y/Y Q/Q Active Customers 51% 26% Registered Customers 68% 39% Revenue 44% -9% Customer Deposits* 31% 2% Gross Turnover SB* 52% 4% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 31: Legal Update
Betsson AB Presentation Q2 2012 Legal Update
Slide 32: Betsson AB Presentation Q2 2012
Betsson AB Presentation Q2 2012 Schleswig-Holstein is moving ahead with their separate gaming regulation and not waiting for the other 15 Bundesländer to join. The effect of the Schleswig-Holstein licenses in the rest of Germany is still unclear. The new federal law proposed by the other 15 Bundeslä
Slide 33: Betsson AB Presentation Q2 2012
Betsson AB Presentation Q2 2012 The Dutch government plans to grant local licences for internet gaming and Betsson has held discussion with them. It is still early in the process but it seems the Dutch government is looking at Denmark as a model for a future Dutch regulation Online gambling continue
Slide 34: Events after Q2
Betsson AB Presentation Q2 2012 Events after Q2
Slide 35: Events after Q2
Betsson AB Presentation Q2 2012 July is traditionally the weakest month of the year, with few sporting events and a relatively low level of activity. Comparable revenue in July this far is in line with second quarter’s average level of revenue The former subsidiary Angler Gaming plc. was successfull
Slide 36: Q&A
Betsson AB Presentation Q2 2012 Q&A