Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2009 Earnings Presentation
24 slides from Betsson Ab Class B's earnings presentation, Jul 24, 2009
Slide 1: Presentation Q2 2009
2009-07-24 Presentation Q2 2009 Pontus Lindwall CEO and President
Slide 2: Agenda
Agenda • Financial presentation • Product and geographical split • Introducing - Sportsbook margin - Customer deposits • Legal • Events after Q2 • Q&A 2
Slide 3: Betsson Financial Presentation Q2 2009
2009-07-24 Betsson Financial Presentation Q2 2009
Slide 4: Q2 Highlights
Q2 Highlights • Revenues increased 20 % to SEK 284.6 million (236.9 ) • Operating income increased 2 % to SEK 61.6 million (60.1) • EPS SEK 1.50 (1.46) Numbers in gray = Q2 2008 4
Slide 5: Q2 Highlights
Q2 Highlights • Operating margin 21.6% (25.4) • Active customers increased 33 % to 185 300 (139 000) • Cash by end of period SEK 287.9 million (142.6) • Betsson has signed an agreement for scratch tickets – launch in third quarter Numbers in gray = Q2 2008 5
Slide 6: Revenues Q by Q
Revenues Q by Q M SEK Unusually high SB-margin 350 284.6 300 Unusually low SB margin 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 • + 20 % compared to Q2 2008 (236.9) • - 10% compared to Q1 2009 (315.5) 6
Slide 7: Higher volatility as Sportsbook increases
Higher volatility as Sportsbook increases M SEK High SB-margin 350 Low SB-margin 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2007 2008 2009 7
Slide 8: Quarter on quarter
Quarter on quarter • Revenues decreased 10 % to SEK 284.6 million (315.5) • Operating income decreased 25 % to SEK 61.6 million (82.4) • Active customer increased 6 % to 185 300 (174 600) Numbers in gray = Q1 2009 8
Slide 9: Product and geographical split
2009-07-24 Betsson Product and geographical split
Slide 10: Gross profit per product segment
Gross profit per product segment M SEK 300 Growth (%) 250 8.0 Other + 29 (Y) + 48 (Q) 200 25.8 Sportsb. - 21 (Y) 31.9 - 55 (Q) 150 Poker - 10 (Y) 100 158.4 - 22 (Q) Casino + 42 (Y) 50 + 4 (Q) 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 10
Slide 11: Gross profit per product Q2
Gross profit per product Q2 Other products 4% Sportsbook 12% Poker 14% Casino 70% 11
Slide 12: Gross profit per geographical area
Gross profit per geographical area SEKm 300 Growth (%) 250 0.8 RoW + 100 (Y) + 0 (Q) 200 33.5 EU + 51 (Y) 49,7 non Nordic + 2 (Q) 150 Non EU - 8 (Y) 100 140,1 and Turkey - 37 (Q) Nordic + 29 (Y) 50 - 2 (Q) 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 12
Slide 13: Gross profit per geographical area Q2
Gross profit per geographical area Q2 Non Nordic EU countries 15% Nordic Rest of Europe 22% 63 % countries non EU members and Turkey Rest of the world 0,4 % 13
Slide 14: Introducing SB Margins, Deposits
2009-07-24 Betsson Introducing SB Margins Deposits
Slide 15: Growth indicators
Growth indicators Growth 2Q 2009 Y/Y Q/Q Active Customers 33 % 6% Registred Customers 44 % 9% Revenues 20 % - 10 % Customer Deposits 32 % 8% Gross Turnover SB 73 % 20% • European Football Championship in 2008 • Market is expected to grow some 14 percent 2009 (GBGC) 15
Slide 16: Active Customers
Active Customers thousand 200 185.3 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 • + 33 % compared to Q2 2008 • + 6 % compared to Q1 2009 16
Slide 17: Registered Customers
Registered Customers thousand 2000 1 777.1 1800 1600 1400 1200 1000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 • + 44 % compared to Q2 2008 • + 9 % compared to Q1 2009 17
Slide 18: Sportsbook margin
Sportsbook margin 2009 2008 2009 2009 2008 Q2 Q2 Q1 H1 H1 Gross Turnover SB 644.8 373.2 536.5 1181.3 690.2 Gross Margin SB¹ 4.0 % 8.7 % 10.7 % 7.0 % 9.4 % Gross Profit 25.8 32.5 57.4 83.2 64.8 1) Margin after direct and allocated costs 18
Slide 19: Betsson - What's your thrill?
2009-07-24 Betsson betsson WHAT'S YOUR THRILL?
Slide 20: Legal
Legal • France - Moving on towards licensing • Sweden - Court finds tournament poker game of skill - Government working on a reduced proposal • Turkey - Privatisation of Milli Piyango failed • EU - EU keep on watching its member states - Further jurisdictions consider licensing systems (DK, Belgium
Slide 21: Legal
Legal • Norway - Still discussing payment and domain blocking - August 2009 previously mentioned as possible time of implementation - National elections September 15th - Local payment blocking weak measure • USA - Activity on both state and federal level - Congressman Barney Frank proposes bill - Ha
Slide 22: Events after Q2
2009-07-24 Betsson Events after Q2
Slide 23: Events after second quarter
Events after second quarter • July is normally a weak seasonal month with a limited offering of sport events. However, revenues in the beginning of the third quarter are somewhat higher than the average second quarter revenues. 23
Slide 24: What's your thrill?
What's your thrill? - 24 < betsson gs