Slide 1: Revenues increased by 14 percent
Revenues increased by 14 percent
Slide 2: Introduction
Introduction B2C – Business to Consumers B2B – Business to Business Regulated Markets Q3 Highlights Legal Update Events after Q3 Q&A
Slide 3: Introduction
Betsson AB Presentation Q3 20]2 betsson ob Introduction
Slide 4: Listed on Nasdaq OMX Nordic, Mid Cap (BETS)
723 employees + 160 full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 800 000 000 Licensed in Malta, Italy, Denmark and Estonia
Slide 5: Proprietary Gaming Platform
Proprietary Gaming Platform
Slide 6: Inhouse developed sportsbook
Inhouse developed sportsbook Betsson has 21 different mobile solutions Mobile livestreaming launched in Q3 Sportsbook turnover 7% of total in Q3 Management estimate that mobile revenues will grow strongly over the coming 12 months
Slide 7: B2C - Business to Consumers
Betsson AB Presentation Q3 20]2 betsson ob B2C - Business to Consumers
Slide 8: Mega Fortune jackpot
Betsson AB Presentation Q3 2012 betsson ob betsson q. eswu= EULE ODDS CASINO 109 miljoner pa Mega Fortune! Varldens stérsta jackpott delades nyligen ut pa Betsson!
Slide 9: Issues after migration of Betsafe to common platform
• Initial issues after migration of Betsafe to the common platform • Technical and process related • Impact in Q3 and starting from a lower level in Q4 • Implemented actions are showing result
Slide 10: B2B - Business to Business
Betsson AB Presentation Q3 20]2 betsson ob B?B - Business to Business
Slide 11: 13 partner white labels – 5 franchisees – 1 Joint Venture
13 partner white labels – 5 franchisees – 1 Joint Venture
Slide 12: Regulated Markets
Betsson AB Presentation Q3 2012 betsson cl Regulated Markets
Slide 13: Italy online slots launch, Denmark, Chinese JV
On December 3, online slots will be allowed in Italy. Betsson will invest in a major launch campaign for Starcasino Danish sites are developing according to plan with higher activity and deposits Chinese JV launched an updated beta-version of its site 13
Slide 14: Q3 Highlights
Betsson AB Presentation Q3 2012 Q3 Highlights
Slide 15: Revenues amounted to SEK 529.5 million, up 14 percent
Revenues amounted to SEK 529.5 (465.7) million, equivalent to an increase of 14 percent Operating income amounted to SEK 120.0 (152.8) million, equivalent to a decrease of 21 percent Operating margin amounted to 22.7 percent (32.8 percent) Numbers in gray = Q3 2011
Slide 16: Earnings per share, deposits and cash
Earnings per Share SEK 2.68 (3.40) Deposits in all of Betsson’s gaming solutions amounted to SEK 1,756.0 (1,483.6) million, which represents an All Time High (ATH) and an increase of 18 percent Cash by end of period SEK 250.1 million (490.3) Numbers in gray = Q3 2011
Slide 17: External credit after NGG acquisition
From to the acquisition of NGG had Betsson at the end of the quarter an external credit amounting to SEK 396.4 million, a decrease with 35 million since last quarter end.
Slide 18: Quarterly revenue development
M SEK 600 529,5 500 400 300 200 100 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 Q3 2005 2006 2007 2008 2009 2010 2011 2012
Slide 19: Product and Geographical Split
Betsson AB Presentation Q3 20]2 betsson ob Product and Geographical Split
Slide 20: B2B vs B2C split
27.5% B2B, Business to business B2C, Business to 72.5% consumers
Slide 21: Revenue by product by quarter
M SEK 500 450 15 400 32 350 90 300 Other 250 Poker 200 Sportsbook 150 Casino 100 302 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012
Slide 22: Revenue split by product
3% 7% Casino Sportsbook 21% Poker Other 69%
Slide 23: Revenue split by geography
1% 18% Nordic Countries 0,8% Other Europe EU, outside Nordic region Rest of the world 80%
Slide 24: Key Performance Indicators
Betsson AB Presentation Q3 20]2 betsson ob Key Pertormance Indicators
Slide 25: Quarterly KPI chart
M SEK 3500 2 921m 3000 2500 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012
Slide 26: Gross turnover, margin and profit in sportsbook
2012 – Q3 2011 – Q3 2012 – Q3 2011 –Q3 3rd PARTY 3rd PARTY SEK million SB SB SB SB Gross Turnover SB 1,087.8 1,833.6 527.7 1,288.9 Gross Margin SB 4.2% 2.4% 4.6% 4.6% Gross Profit 45.5 44.3 24.5 59.6 * Margins after allocated costs
Slide 27: Sportsbook margin
Margin 14% 13% 12% 11% 10% 9% 8% AVG. Q3 7% 6% 5% 4% 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 * Margins after free bets (but before allocated costs)
Slide 28: Sportsbook, total stakes development
Sportsbook, total stakes development 600% 500% 400% Total 4 peer average, index 300% Betsson Total stake index, excl acquisitions 200% Betsson Total stake index 100% 0% * Peers include Bwin.party, PaddyPower, WilliamHill and Unibet
Slide 29: Customer KPI by quarter
Thousand 600 463 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 2012
Slide 30: Customer KPI by quarter
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 Q3 2007 2008 2009 2010 2011 2012
Slide 31: Deposits in all gaming solutions
M SEK 2 000 1 756 m 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 * Deposits in all gaming solutions
Slide 32: Active Customers in a longer perspective
Y/Y Q/Q Active Customers 21% -9% Registered Customers 65% 4% Revenue 14% 9% Customer Deposits* 18% 16% Gross Turnover SB* 61% 6% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 33: Legal Update
Betsson AB Presentation Q3 2012 betsson cl Legal Update
Slide 34: EU communication on online gambling
EU issued a communication “Towards a comprehensive European framework for online gambling”. The communication states among other thing that: • Infringement cases will be accelerated • Member state cooperation will be facilitated • EU will issue recommendation on common player protection measures and
Slide 35: Swedish online gambling licenses timing
When will online gambling licenses for privately owned companies be implemented in Sweden? • Before elections 2014: 12.00 • Between elections 2014 and Dec 31 2015: 1.70 • 2016 or later: 2.35
Slide 36: Events after Q3
Betsson AB Presentation Q3 2012 betsson ob Fvents after Q3
Slide 37: Fourth quarter has started stable
Fourth quarter has started stable with average daily revenues 21 percent above the average in previous quarter Deposits and Gross Turnover in Sportsbook are on ATH levels Sportsbook margin after free bets in October is above 8 percent. During October a great Jackpot in the game Hall of Gods on Betss
Slide 38: Q&A
Betsson AB Presentation Q3 2012 betsson ab Q&A