Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2019 Earnings Presentation
13 slides from Betsson Ab Class B's earnings presentation, 2019
Slide 1: Q1 2019
Q1 2019 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q1
HIGHLIGHTS Q1 — Revenue growth of 10 percent — SEK 1,331 million — Growth across all regions — EBIT growth of 21 percent — SEK 255 million — Efficiencies continue to show effect — Opex decreased organically by 5% — EBIT margin 19.2% — First quarter with new regulation in Sweden — Revenue share from
Slide 3: Financial Summary Q1
FINANCIAL SUMMARY Q1 — Total revenue growth of 10% SEK m Q1 2019 Q1 2018 Change — Casino revenue growth of 10% Revenue 1,331 1,210 10% — Sportsbook revenue growth of 13% Gross profit 899 864 4% — Q1 Sportsbook margin at 6.3% Gross margin 67.6% 71.4% — Sportsbook margin 8 quarters average 7.0% EBITDA
Slide 4: IFRS 16 Impact
IFRS 16 IMPACT — IFRS 16 Leases, is a new standard from 1 January, 2019 and replaces IAS 17 Income Statement effects Q1-2019 (SEK m) — Depreciation and interest are recognised Other external expenses +13.4 instead of rent costs EBITDA +13.4 — Minimal EBIT impact Amortisation and depreciation -12.8 E
Slide 5: Solid quarter and increasing customer activity
Solid quarter and increasing customer activity — EBIT margin at 19.2% despite challenging — Number of active customers during the first first quarter from Swedish re-regulation quarter was 686 635 — EBIT increased by 21% — An increase by 13% — Betting duties increased by 49% — Opex decreased organic
Slide 6: Product & Technology
PRODUCT & TECHNOLOGY — Major improvements in product offering such as — Site speed improvements — Daily jackpot widget — OBG Live Stream Calendar — Match Result in Bet History — Live Score in Open Bets — Betsson branded card by MasterCard launched with exclusitivity for Swedish customers — Swish lau
Slide 7: First Quarter - Growth in All Regions
FIRST QUARTER - GROWTH IN ALL REGIONS +10% Revenue, Q1 2019 5% 35 34 41 33 12 19% SEK m 44% 1331 1210 Nordics Revenue Q1 '18 Nordics Revenue Q1 '19 Western Europe RoW CEECA Western Europe 32% CEECA RoW 2% 10% 15% 95% 7
Slide 8: Casino Development
CASINO DEVELOPMENT — Betsson offer 2,700 casino games of which 2,000 on mobile 1 200 — Casino growth 10% 1 000 — Organic growth 7% 800 — Casino 76% of total revenue — Growth in Western Europe, CEECA and ROW 600 SEK m — Negative impact from Swedish regulation 400 — Mobile casino revenue increased 25%
Slide 9: Sportsbook Development
SPORTSBOOK DEVELOPMENT — Betsson runs its own Sportsbook solution 7 000 6 000 9% 8% — 230+ pre-match markets 5 000 7% 6% 4 000 — 100+ live markets 5% SEK m 3 000 4% — 46,614 live betting events in Q1 2019 2 000 3% 2% 1 000 1% — SB turnover grew 10%, with 18% organic growth 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Sweden Regulated Market
SWEDEN REGULATED MARKET —Regulated since January 1, 2019 — 18 percent betting duties — 5 year licenses for four brands —Impact from re-regulation — Betting duties — Welcome bonus — Self-exclusion by 30,000 at spelpaus.se — Ongoing discussions on marketing —Betsson sees Sweden as a long-term importan
Slide 11: Regulatory Update
REGULATORY UPDATE — Licences in 12 jurisdictions — Betting duties increase in Italy from 1 January, 2019 and in UK from 1 April, 2019 — New gambling law adopted in the Netherlands — Estimated to come into force Q3 2020, market expected to open Q1 2021 — Betsson made adjustments in product offering,
Slide 12: Summary
SUMMARY —Revenue growth and solid profitability —Impact from Swedish regulation and upcoming Dutch legislation — Continued improvements of products and technology to offer our customers fun and secure entertainment — Efficiencies to absorb betting duties — Geographical spread —Our long experience an
Slide 13: Betsson AB
betsson ab