Slide 1: Presentation Q2 2015
PRESENTATION Q2 2015 Q2 2015 SECOND QUARTER REVENUES GREW 14%
Slide 2: Q2 2015 Highlights
Q2 2015 HIGHLIGHTS Revenues of SEK 860.6 million ATH Organic growth +14% Operating income +12% Gross turnover, Sportsbook +30% Deposits +19% Acquisition of Europe-Bet
Slide 3: Acquisition of Europe-Bet
PRESENTATION Q2 2015 Acquisition of Europe-Bet
Slide 4: Acquisition of Europe-Bet - Location
ACQUISITION OF EUROPE-BET - LOCATION Georgia
Slide 5: Facts of Georgia
FACTS OF GEORGIA Overall facts Gambling development (2014) Capital Tbilisi Official language Georgian Total online gambling (USDm) 136 GDP growth rate (CAGR) 12.2%* Average online gambling/adult (USD) 40* Total online gambling as percentage Population 4.6 million 0.8** of GDP (%) Independence from 1
Slide 6: Design of the Licensing System in Georgia
DESIGN OF THE LICENSING SYSTEM IN GEORGIA Georgian tax system on gambling Locally licensed market Corporate Gambling type Taxable base income tax Physical gambling center and a sustainable history are requirements Online Sportsbook 5% Turnover to get online license Online Casino, 15% Gross incom
Slide 7: Acquisition of Europe-Bet
ACQUISITION OF EUROPE-BET Acquired from a group of entrepreneurs Standalone figures for Europe-Bet Operate Europe-bet.com and a number of offline venues P&L 2013 2014 (USD million) Around 150 employees in the online operations, and an offline organisation Accounting revenue 30.5 52.4 EBIT 12.5
Slide 8: Acquisition of Europe-Bet
ACQUISITION OF EUROPE-BET Standalone figures for Europe-Bet P&L Online Offline (USD million, 2014) The online operation is Sportsbook driven Accounting revenue 40.9 11.5 (44% of total revenue in 2014) EBIT 17.9 2.1 EBIT margin 44% 18% Multi-product offering (Casino, Sportsbook, Poker and Other g
Slide 9: Strategic Reasons for the Acquisition
STRATEGIC REASONS FOR THE ACQUISITION Strengthening Betsson’s position in the market Betsson moving towards larger proportion of locally regulated revenues Strong and well established brand in Georgia Fits into Betsson’s multibrand strategy. Revenue upside when migrating to Techsson
Slide 10: Regulated Revenues at Betsson
REGULATED REVENUES AT BETSSON 16%* Revenue from Malta license Revenue from locally 84% regulated markets *Revenue from Betsson and Europe-Bet pro forma Q2
Slide 11: Acquisition of Europe-Bet
ACQUISITION OF EUROPE-BET Price: USD 50-85 million USD 50 million upfront Standalone figures for Europe-Bet Additional purchase price of USD 35 million if regulation is unchanged Purchase price EBIT multiple Acquisition costs of SEK 4.8 million (MUSD) (FY 2014) Financing 50 2.5 Renewal o
Slide 12: Q2 Betsson
PRESENTATION Q2 2015 Q2 BETSSON SECOND QUARTER REVENUES GREW 14%
Slide 13: Financial Highlights
PRESENTATION Q2 2015 FINANCIAL HIGHLIGHTS
Slide 14: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Revenues of SEK 860.6 (752.3) million (ATH) Total growth (organic) of 14 percent Positive FX of SEK 7 million Figures in brackets refer to the same period last year
Slide 15: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS EBIT of SEK 213.8 (190.4) million, a growth of 12 percent Negative FX of SEK 6 million EBIT margin of 24.8 percent (25.3) Cash by end of period SEK 355.7 million (433.2) Earnings per Share SEK 1.46 (1.28) Figures in brackets refer to the same period last year
Slide 16: Revenues, 14% Growth
REVENUES, 14% GROWTH SEK m 1000 860.6 900 800 700 600 500 400 300 200 100 0 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 17: Marketing of Total Revenue (%)
MARKETING OF TOTAL REVENUE (%) 25% 19% 20% 19% 20% 18% 18% 17% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 2014 2015
Slide 18: Product and Geographical Split
PRESENTATION Q2 2015 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 19: Revenue per Segment
REVENUE PER SEGMENT 22.6% (22.1%) B2B, Business to business B2C, Business 77.4% to consumers (77.9%) Figures in brackets refer to the same period last year
Slide 20: Revenue per Segment
REVENUE PER SEGMENT Actual (SEK m) Total Growth (%) B2C 666.0 14% B2B 194.6 17%
Slide 21: Revenue per Product
REVENUE PER PRODUCT 1.4% (1.7%) Casino 24.0% Poker (23.7%) Sportsbook 71.8% 2.9% (71.1%) (3.6%) Other Figures in brackets refer to the same period last year
Slide 22: Revenue per Geography (B2C)
REVENUE PER GEOGRAPHY (B2C) 1.7% (0.5%) Nordic Region 32.1% Other Europe (28.5%) EU, outside Nordic region 65.1% (70.5%) Rest of the world 1.1% (0.5%) Figures in brackets refer to the same period last year
Slide 23: Key Performance Indicators
PRESENTATION Q2 2015 KEY PERFORMANCE INDICATORS
Slide 24: Mobile Development
MOBILE DEVELOPMENT SEK m 33% 350 35% 300 30% 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 Mobile Revenue % Total Revenue
Slide 25: Mobile Sportsbook Turnover
MOBILE SPORTSBOOK TURNOVER 60% 55% 50% 48% 43% 40% 40% 30% 30% 21% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 2014 2015
Slide 26: Sportsbook
SPORTSBOOK SEK m 6 000 +30% 9% 8% 5 000 7% 4 000 6% 5% 3 000 4% 2 000 3% 2% 1 000 1% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 Gross turnover Margin after free bets (%)
Slide 27: Deposits – 19% Growth
DEPOSITS – 19% GROWTH SEK m 3 500 3 116 3 000 2 500 2 000 1 500 1 000 500 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 2015
Slide 28: Active Customers
ACTIVE CUSTOMERS Thousand 600 500 358 400 300 200 100 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 2015
Slide 29: Registered Customers
REGISTERED CUSTOMERS Thousand 9 000 8 097 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2014 2015
Slide 30: Legal Update
PRESENTATION Q2 2015 LEGAL UPDATE
Slide 31: Legal Update
LEGAL UPDATE The Netherlands The proposed new Dutch legislation is still in the second chamber in the parliament waiting to be processed The political development has been halted due to the summer recess and progress not expected until late Q3 2015 Implementation is further delayed, now expect
Slide 32: Legal Update
LEGAL UPDATE Sweden – Timetable for new regulation Instructions to the investigative committee is expected to be submitted during the summer Start of investigation (Autumn 2015) Conclusion from the investigation (Early 2017) Council on Legislation and EU notification (Autumn 2017) Proposit
Slide 33: Events After Q2
PRESENTATION Q2 2015 EVENTS AFTER Q2
Slide 34: Events After the End of the Period
EVENTS AFTER END OF THE PERIOD The third quarter of 2015 has started with revenues somewhat below average level of the previous quarter The acquisition of Europe-Bet will be closed before end of July There have been no other significant events after the end of the period
Slide 35: Q&A
PRESENTATION Q2 2015 Q&A