Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2013 Earnings Presentation
33 slides from Betsson Ab Class B's earnings presentation, 2013
Slide 1: Q3 2013: Revenues grew 14% organically
PRESENTATION Q3 2013 Q3 2013 Revenues grew 14% organically
Slide 2: Presentation Outline
PRESENTATION Q3 2013 Presentation Outline Business development update Regulated markets Q3 Highlights Legal Update Events after Q3 Q&A
Slide 3: Business Development Update
PRESENTATION Q3 2013 BUSINESS DEVELOPMENT UPDATE
Slide 4: Multi Supplier and Multi Brand Strategy
PRESENTATION Q3 2012 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 5: Business optimisation
PRESENTATION Q3 2013 Business optimisation Betsson AB’s subsidiaries are set to deliver the best customer experience in the industry, through: Individual real time customer communication » higher ARPU, higher conversion Digital marketing » higher conversion, lower CPA Use of Big Data » higher ARPU I
Slide 6: Mobile first
PRESENTATION Q3 2013 Mobile first Development Launched the last 18 months: HTML5 for 21 brands, Native App for Casino.dk and branded live score Apps New games and functionality constantly added Native App launched for Betsson.com on all main markets in October. The other key brands will be launched
Slide 7: Regulated Markets
PRESENTATION Q3 2013 REGULATED MARKETS
Slide 8: Internationally and locally regulated
PRESENTATION Q3 2013 Internationally and locally regulated Betsson’s core markets are internationally regulated (based on our Malta license) We see good opportunities in short and long term on both locally and internationally regulated markets Betsson has 3 licenses on locally regulated markets, Den
Slide 9: Locally regulated markets
PRESENTATION Q3 2013 Locally regulated markets The Italian casino site, Starcasino.it, continue to grow strongly, even if the business still is relatively small. The Danish sites continue to show stable development. The growth is in line with Betssons overall growth. Casinoeuro.dk recently changed i
Slide 10: China
PRESENTATION Q3 2013 China During the third quarter, live tests were done on www.kufa88.com. The tests have been successful. Kufa88 is considered to be one of the most modern lottery/betting site in China. Betsson has a positive outlook on the future possibilities in China.
Slide 11: Q3 Highlights
PRESENTATION Q3 2013 Q3 HIGHLIGHTS
Slide 12: Q3 Financials
PRESENTATION Q3 2013 Q3 Financials Revenues amounted to SEK 603.4 (529.5) million, equivalent to an increase of 14 percent Organic growth, adjusted for FX, amounted to 16%. Operating income amounted to SEK 152.2 (120.0) million equal to a margin of 25.2 percent (22.7 percent) and 27% growth Cash by
Slide 13: Revenues, 14% growth
PRESENTATION Q3 2013 Revenues, 14% growth M SEK 700 603.4 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 14: Product and Geographical Split
PRESENTATION Q3 2013 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 15: Gross Profit per Segment
PRESENTATION Q3 2013 Gross Profit per Segment 21% (27.5%) B2B, Business to business B2C, Business to 79% consumers (72.5%) Figures in brackets refer to the same period last year
Slide 16: Gross profit growth per segment
PRESENTATION Q3 2013 Gross profit growth per segment The Automaten brands have been included in B2C since the first of April 2013 and prior to that included under the B2B The Automaten brands contributed with SEK 35.8 million to B2C in Q3 B2C adj for B2B adj for B2C/B2C B2C B2B Automaten Automaten G
Slide 17: Gross Profit per Product
PRESENTATION Q3 2013 Gross Profit per Product 4% 2% (7%) (3%) Casino 28% Sportsbook (21%) 66% Poker (69%) Other Figures in brackets refer to the same period last year
Slide 18: Gross Profit per Geographical Area (B2C)
PRESENTATION Q3 2013 Gross Profit per Geographical Area (B2C) 0.4% (1.2%) 0.4% 13.9% (0.8%) (18%) Nordic Countries Other Europe 85.4% EU, outside Nordic region (80%) Rest of the world Figures in brackets refer to the same period last year
Slide 19: Key Performance Indicators
PRESENTATION Q3 2013 KEY PERFORMANCE INDICATORS
Slide 20: Q3 Sportsbook
PRESENTATION Q3 2013 Q3 Sportsbook SEK million 2013 – Q3 Growth 2012 – Q3 2013 – Q3 Growth 2012 –Q3 3rd PARTY 3rd PARTY 3rd PARTY SB Q3 SB SB SB SB SB Gross Turnover SB 1,234.1 13,5% 2,164.4 18% 1087.8 1,833.6 Gross Margin SB* 6.6% 2.7% 4.2% 2.4% Gross Profit 81.8 80% 58.9 33% 45.5 44.3 Total margin
Slide 21: Active Customers, focus on profitable segment
PRESENTATION Q3 2013 Active Customers, focus on profitable segment Thousand 600 500 423.6 400 300 200 100 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 2007 2008 2009 2010 2011 2012 2013 * In Q2 2012 UEFA European Football Championship took place.
Slide 22: Registered Customers, 18% growth
PRESENTATION Q3 2013 Registered Customers, 18% growth Thousand 7 000 6623.2 6 000 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 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 2012 2013
Slide 23: Deposits, 15% growth
PRESENTATION Q3 2013 Deposits, 15% growth M SEK 2 500 2 027.1 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013
Slide 24: Legal Update
PRESENTATION Q3 2013 LEGAL UPDATE
Slide 25: Norway and The Netherlands
PRESENTATION Q3 2013 Norway After the election there is now parliamentary support for a re- regulation of the gaming market in Norway A step closer to a new locally regulated market. Betsson supports the development It will probably take until 2016/2017 before a re-regulation can be in place The Net
Slide 26: Sweden and Turkey
PRESENTATION Q3 2013 Sweden The government is continuing to investigate the best way to regulate online gaming. A new proposal will most likely not be put forward until after the election in 2014 The Swedish Gaming board (“LI”) are trying to use administrative fines to address promotion of cross-bor
Slide 27: Events After Q3
PRESENTATION Q3 2013 EVENTS AFTER Q3
Slide 28: Fourth quarter start
PRESENTATION Q3 2013 The fourth quarter started with revenue in line with the average level in the previous quarter Revenues, to date, have been negatively affected by low Sportsbook margins, while at the same time the underlying gaming activity is higher than the average for the previous quarter Th
Slide 29: New Sportsbook product 1X2 launched in Sweden
PRESENTATION Q3 2013 A new Sportbook product called 1X2 (EttKryssTvå) have been launched in Sweden. The product has potential to attract customers who normally plays on the monopoly
Slide 30: Long Term Highlights
PRESENTATION Q3 2013 LONG TERM HIGHLIGHTS
Slide 31: The most strategically effective company in the industry: EBIT margin, dividend yield
PRESENTATION Q3 2013 The most strategically effective company in the industry EBIT margin, Dividend Yield 35% 32% 30% 27% 26% 24% 24% 25% 25% 23% 20% 19% 19% 18% 18% 17% 15% 9% 10% 8% 7% 6% 5% 5%e 5% 0% 2008 2009 2010 2011 2012 YTD 2013/Latest avaliable Industry average* Betsson Betsson dividend *20
Slide 32: The most strategically effective company in the industry: Growth
PRESENTATION Q3 2013 The most strategically effective company in the industry Growth 70% 61% 60% 50% 40% 30% 25% 27% 23% 20% 17% 16% 20% 10% 8% 13% 14% 12% 9% 0% 2008 2009 2010 2011 2012 YTD 2013/Latest avaliable Betsson growth Industry average Growth *2008-2012 consist of Betsson, Unibet, 888 Holdi
Slide 33: Q&A
PRESENTATION Q3 2013 betsson ab Q&A