Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2019 Earnings Presentation
15 slides from Betsson Ab Class B's earnings presentation, 2019
Slide 1: Q3 2019
Q3 2019 Pontus Lindwall, CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Q3 in brief
Q3 IN BRIEF — Gaming industry undergoing changes — Ongoing consolidation, more to come — Regulated markets under pressure — Strong operating income in challenging quarter — Revenue at SEK 1,275 million — EBIT at SEK 213 million, EBIT margin 16.7% — Short-term downturns mitigated by geographical spre
Slide 3: Recent product & technology initiatives
RECENT PRODUCT & TECHNOLOGY INITIATIVES — Multigame window launched in Casino — Allows customers to enjoy multiple games simultaneously on desktop — Sportsbook enhancements — Competetive edge with widest ice-hockey offering — Developed to be an attractive third-party product — ISO27001 certification
Slide 4: Accredited with ISO 27001
ACCREDITED WITH ISO 27001 - A framework to keep our assets secure. WHAT - Recommended for accreditation. HOW - 116 controls within 14 categories. WHEN - Officially accredited in September, 2019. - We have 12 licenses that use part of ISO 27001 controls. WHY - An InfoSec framework caters for our grow
Slide 5: Proprietary technology
PROPRIETARY TECHNOLOGY Betsson’s Total Offering: — Betsson’s technology is the core of the offering SB data feeds, live and customer experience Google services Casino games 60+ payment streaming etc. 130+ suppliers providers CRM etc. feeds etc. — We control our technology in-house — We can different
Slide 6: Betsson with focus on ESG
BETSSON WITH FOCUS ON ESG Four focus areas Responsible gaming • First full-time employee within responsible gaming (RG) more than 10 years ago • “Duty to care” principle in all operations to ensure customer protection • No betting on under-aged • Categorisation of customers, based on >50 attributes,
Slide 7: Commitment to player protection
COMITTMENT TO PLAYER PROTECTION Selected initiatives — Betsson was the first company to hire a person within Responsible Gaming (RG) more than 10 years ago Budget/deposit limits In Q3 2019, 34% of all new Gaming overview Gives customers a clear picture of — “Duty to care” principle in operations dep
Slide 8: Regulatory update
REGULATORY UPDATE — Sweden — Sweden is an important market long-term, in which Betsson aims to grow sustainably — High channelisation degree needs to be secured for customer protection — Fine regarding Nordicbet appealed — The Netherlands — Market expected to open Q1 2021 — Betsson made adjustments
Slide 9: Financial summary Q3
FINANCIAL SUMMARY Q3 — Total revenue SEK 1,275 million SEK m Q3 2019 Q3 2018 Change YTD 2019 YTD 2018 — Sportsbook Revenue 1,275 1,427 -11% 3,884 3,983 — Sportsbook revenue in line with last year, excluding world cup effect Gross profit 831 1,010 -18% 2,589 2,842 — Gross turnover on par with last ye
Slide 10: Third quarter – by region
THIRD QUARTER – BY REGION — The Nordics under pressure -11% — Weak revenue trend due to regulatory challenges 191 — Betsson’s payment platform solution provide future flexibility 78 11 49 — Western Europe on par with Q2 — Initial revenue decline in direct connection SEK m with actions taken in the N
Slide 11: Sportsbook development
SPORTSBOOK DEVELOPMENT 7 000 10% 6 000 — Sportsbook gross turnover in line with last year 5 000 8% 6% — 44,053 live betting events in Q3 2019 reflecting SEK m 4 000 a competitive offering 3 000 4% 2 000 2% — SB revenue decline of 7%, flat excluding 1 000 world cup 2018 effect 0 Q3 2017Q4 2017Q1 2018
Slide 12: Casino development
CASINO DEVELOPMENT — Betsson offer 2,700 casino games of which Casino revenue 2,000 on mobile 1 200 — Casino revenue decreased by 12% 1 000 — Total revenue grew Q/Q driven by all regions except the Nordics 800 SEK m — Casino 74% of total revenue 600 400 200 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Slide 13: Cash flow
CASH FLOW — Operating cash flow SEK 307 million — Mainly driven by operating income and positive impact from changes in working capital SEK m Q3 2019 Q3 2018 YTD 2019 YTD 2018 — Investments Operating cash flow 307 401 913 984 — Driven by investments in Betsson’s proprietary Cash flow from -82 -59 -2
Slide 14: Summary
SUMMARY — Third quarter revenue impacted by regulatory challenges Proprietary technology secures — Betsson confident about the long-term opportunities the future — Sportsbook enhancements provide both performance and commercial opportunities Long gaming Strong financials to execute strategy — Increa
Slide 15: Betsson AB
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