Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2023 Earnings Presentation
15 slides from Betsson Ab Class B's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Presentation of results
Q3 2023 Presentation of results
Slide 2: Outline
OUTLINE Highlights Business update Regulatory update Financials Trading update Pontus Lindwall Martin Öhman President & CEO, CFO, Betsson AB Betsson AB Summary Q&A 2
Slide 3: Q3 2023 Key Figures
Q3 2023 KEY FIGURES REVENUE EBIT EBIT OPERATING CASH CUSTOMER 238 MEUR 56 MEUR MARGIN FLOW DEPOSITS +19% YoY +46% YoY 23.6% 45 MEUR 1,237 +39% organic MEUR +31% YoY SPORTSBOOK SPORTSBOOK CASINO CASINO REVENUE SPORTSBOOK TURNOVER TURNOVER REVENUE MARGIN +24% +2% 8.0% +32% +27% YoY YoY YoY YoY Margin
Slide 4: Our Markets – Some Activities
OUR MARKETS – SOME ACTIVITIES EXISTING MARKETS NEW MARKETS B2B M&A First ever global advertising campaign was launched under Flagship brand Betsson launched the theme “A bet makes the difference” in Denmark Extended partnership with Italian Serie A club A.S. Roma
Slide 5: New Markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Launched online casino in locally regulated market in Serbia Obtained sports betting license for France 5
Slide 6: B2B and M&A
B2B AND M&A EXISTING MARKETS NEW MARKETS B2B M&A Betsson exclusively selected as sole B2B sportsbook provider for Bethard — integrated and officially launched in August Completed acquisition of betFIRST — consolidated as of July 6, 2023 6
Slide 7: Product & Technology Development
PRODUCT & TECHNOLOGY DEVELOPMENT Sportsbook platform of Cloud migration and Kickertech, acquired in native app development 2022, was successfully continued integrated into Betsson’s own platform Added games and features for casino and sportsbook – focus on new types of content for Latin America 7
Slide 8: Regulatory Update
REGULATORY UPDATE PERU BRAZIL SWEDEN CHILE New online gambling Chamber of Deputies Increasing gaming tax Supreme Court regulation published adopted new online from 18% to 22% of decision regarding on October 13, in line gambling legislation, GGR as of 2024 one of the ISPs to with expectations. inclu
Slide 9: Development and KPIs
DEVELOPMENT AND KPIs Revenue (MEUR) Customer deposits (MEUR) 250 +19% ATH revenue of 1 400 +31% 238 MEUR 1 200 200 1 000 150 800 600 100 400 200 50 0 Q2-21Q3-21Q4-21Q1-22Q2-22Q3-22Q4-22Q1-23Q2-23Q3-23 0 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Active customers (000s) 1 600 Casino
Slide 10: Revenue Development by Region YoY
REVENUE DEVELOPMENT BY REGION YOY +19% +39% 41 13 0 RoW 18 2% Nordics 19% 8 14 CEECA 41% Latin America 279 22% MEUR 238 200 Western Europe 16% Q3 22 revenue Nordics Western Europe CEECA LatAm Rest of world Q3 23 reported FX and M&A Q3 23 organic revenue effects revenue 10
Slide 11: EBIT Development YoY
EBIT DEVELOPMENT YOY +46% EBIT EBIT Margin Margin 23.6% MEUR Q3 2023 Q3 2022 19.2% 37 15 Revenue 238 200 7 4 3 Gross profit 157 134 6 Gross 65.9% 66.8% MEUR margin Opex 101 95 56 EBIT 56 38 38 Q3 22 EBIT Revenue Cost of Services Marketing Personnel D&A Other Costs Q3 23 EBIT Sold Expenses Expenses 1
Slide 12: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION — Operating cash flow MEUR Q3 2023 Q3 2022 — Operating cash flow driven by increase in EBIT — Negative impact from working capital due to Operating cash flow 44.9 38.5 increased payment provider balances, increased account receivables and the addition of the of betFIRS
Slide 13: Q4 2023 Trading Update
Q4 2023 TRADING UPDATE* Average daily revenue up to and including 20 October was 12% higher than the average daily revenue of the full quarter in Q4 2022. The average organic daily revenue was 37% higher than the average daily revenue of the full quarter in Q4 2022 Sportsbook margin significantly lo
Slide 14: Summary Q3 2023
SUMMARY Q3 2023 New record revenue and EBIT for the Group Solid increase in deposits and new active customers ATH revenue in casino Broad-based, high growth across CEECA, Latin America and Western Europe Scalable business model drives higher profitability Strong balance sheet and cash fl
Slide 15: Thank You
THANK YOU TIME FOR Q&A