Slide 1: Q4 2012: Revenues increased by 27 percent
PRESENTATION Q4 2012 Q4 2012 Revenues increased by 27 percent
Slide 2: Presentation Outline
PRESENTATION Q4 2012 Presentation Outline Introduction B2C – Business to Consumers B2B – Business to Business Q4 Progress Q4 Financials & KPI:s Legal Update Events after Q4 Q&A
Slide 3: Introduction
PRESENTATION Q4 2012 INTRODUCTION
Slide 4: Betsson – anniversary, employees and listing
PRESENTATION Q4 2012 Betsson – 50 years anniversary 748 (412) employees + 184 (169) full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 1 000 000 000 Licensed in Malta, Italy, Denmark and Estonia
Slide 5: Multi Supplier and Multi Brand Strategy
PRESENTATION Q4 2012 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 6: B2C – Business to Consumers
PRESENTATION Q4 2012 B2C – BUSINESS TO CONSUMERS
Slide 7: PRESENTATION Q4 2012
PRESENTATION Q4 2012
Slide 8: B2B – Business to Business
PRESENTATION Q4 2012 B2B – BUSINESS TO BUSINESS
Slide 9: PRESENTATION Q4 2012
PRESENTATION Q4 2012
Slide 10: Q4 Progress
PRESENTATION Q4 2012 Q4 PROGRESS
Slide 11: Mobile Growth
PRESENTATION Q4 2012 Mobile Growth Strong development throughout 2012, expected to continue in 2013 revenues will grow Mobile revenues 7% ofstrongly over in total revenues the Q4, coming 12 months corresponding to +100% quarterly growth Sportsbook turnover 8% of total in Q4
Slide 12: Betsafe Situation
PRESENTATION Q4 2012 Betsafe Situation Initial issues after migration of Betsafe to the common platform Implemented actions have given result Back on track that
Slide 13: Casino operator of the year
PRESENTATION Q4 2012 Casino operator of the year Betsson was awarded the prestigous award “Casino operator of the year”, at the EGR award ceremony in London in Q4.
Slide 14: Regulated markets
PRESENTATION Q4 2012 Regulated markets On December 3, online slots became allowed in Italy. Betsson has invested in a major launch campaign for Starcasino. It is still to early to evaluate the effect. Danish sites are developing strong and gave a positive net contribution in Q4. Betsson is continuin
Slide 15: Investing in growth
PRESENTATION Q4 2012 Investing in growth Business optimization projects: • Business Intelligence • Platform migrations • SEO • Payment optimization • Mobile product development Financed from synergies and operational leverage Specific growth projects: • Regulated markets • China Will have negati
Slide 16: Q4 Financials
PRESENTATION Q4 2012 Q4 FINANCIALS
Slide 17: Q4 Financials
PRESENTATION Q4 2012 Q4 Financials Revenues amounted to SEK 651.9 (515.2) million, equivalent to an increase of 27 percent Operating income amounted to SEK 173.4 (172.3) million Operating margin (percent of Revenues) amounted to 26.6 percent (33.4 percent) Earnings per Share SEK 3.95 (4.01)
Slide 18: Q4 Financials
PRESENTATION Q4 2012 Q4 Financials Income statement is charged with a cost of SEK 39.2 (9.2) million in connection with investments in newly regulated markets and software development in China. Income statement is also charged with restructuring costs amounting to SEK 5.8 (-) million. Deposits in al
Slide 19: Proposed distribution
PRESENTATION Q4 2012 Proposed distribution Betsson’s Board of Directors proposes a transfer to the shareholders, amounting to SEK 410.9 million. Assuming that the number of shares outstanding does not change the proposal involves the transfer of SEK 9.7 per share.
Slide 20: Revenues
PRESENTATION Q4 2012 Revenues M SEK 700 651.9 600 500 400 300 200 100 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 2005 2006 2007 2008 2009 2010 2011 2012
Slide 21: Product and Geographical Split
PRESENTATION Q4 2012 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 22: Gross Profit per Segment
PRESENTATION Q4 2012 Gross Profit per Segment B2B, Business to 26.9% business B2C, Business to 73.1% consumers
Slide 23: Gross Profit per Product
PRESENTATION Q4 2012 Gross Profit per Product M SEK 600 16 Other 32 500 Poker Sportsbook Casino 166 400 300 200 336 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012
Slide 24: Gross Profit per Product
PRESENTATION Q4 2012 Gross Profit per Product 6% 3% Casino Sportsbook 30% Poker 61% Other
Slide 25: Gross Profit per Geographical Area (B2C)
PRESENTATION Q4 2012 Gross Profit per Geographical Area (B2C) 0,4% 17% Nordic Countries 0,3% Other Europe 82% EU, outside Nordic region Rest of the world
Slide 26: Key Performance Indicators
PRESENTATION Q4 2012 KEY PERFORMANCE INDICATORS
Slide 27: ATH in SB Turnover
PRESENTATION Q4 2012 ATH in SB Turnover M SEK Sportsbook Turnover Development 4000 3782.8 3500 3000 2500 2 921m 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012
Slide 28: Q4 SB Margins
PRESENTATION Q4 2012 Q4 SB Margins SEK million 2012 – Q4 2011 – Q4 2012 – Q4 2011 –Q4 3rd PARTY 3rd PARTY SB SB SB SB Gross Turnover SB 1,271.1 2,511.7 590.1 1,581.2 Gross Margin SB* 7.5% 2.8% 6.4% 3.8% Gross Profit Gross Profit 95.0 70.5 37.6 59.6 * Margins after allocated costs
Slide 29: Active Customers
PRESENTATION Q4 2012 Active Customers Thousand 600 520.4 500 400 300 200 100 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 2007 2008 2009 2010 2011 2012
Slide 30: Registered Customers
PRESENTATION Q4 2012 Registered Customers Thousand 7 000 5 777.9 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 2007 2008 2009 2010 2011 2012
Slide 31: Deposits
PRESENTATION Q4 2012 Deposits M SEK 2 500 2 154.8 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012
Slide 32: Growth Indicators Summary
PRESENTATION Q4 2012 Growth Indicators Summary Y/Y Q/Q Active Customers 29% 12% Registered Customers 58% 3% Revenue 27% 23% Customer Deposits* 23% 45% Gross Turnover SB* 74% 30% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 33: Legal Update
PRESENTATION Q4 2012 LEGAL UPDATE
Slide 34: Germany and Holland
PRESENTATION Q4 2012 Germany It’s now very unlikely that Schleswig-Holstein will implement a separate gaming regulation as the ruling coalition has decided to join the federal state treaty together with the other 15 Bundesländer. Betsson has decided not to complete its application in this round for
Slide 35: Greece and Sweden
PRESENTATION Q4 2012 Greece The gaming law from 2011 has been adjusted and the gaming authority is threatening with a “black list” for non-compliant operators. On January 25th 2013 the ECJ ruled against this new legislation and made it clear it was contrary to EU law principles and needed to be chan
Slide 36: Events after Q4
PRESENTATION Q4 2012 EVENTS AFTER Q4
Slide 37: Events after Q4
PRESENTATION Q4 2012 The initial stages of the first quarter have been stable, with an all time high (ATH) in customer deposits and revenues. This corresponds to levels above the average in previous quarter and is driven by high activity. In the beginning of 2013, Betsson Malta launced its first soc
Slide 38: Live social sports app
PRESENTATION Q4 2012 Live social sports app MyFootball ConnectTM provides an innovative and exciting ’second screen’ social sports experience Played against your friends or random opponents during live football matches Players gain achievements and rewards Fully socially-integrated product Launching
Slide 39: Q&A
PRESENTATION Q4 2012 betsson ab Q&A