Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q4 2013 Earnings Presentation
33 slides from Betsson Ab Class B's earnings presentation, 2014
Slide 1: Q4 2013 - Strategic acquisition in the Netherlands
PRESENTATION Q4 2013 Q4 2013 Strategic acquisition in the Netherlands
Slide 2: Presentation Outline
PRESENTATION Q4 2013 Presentation Outline Acquisition - Oranje and Kroon Business development update Q4 Highlights Events after Q4 Q&A
Slide 3: Acquisition - Oranje and Kroon
PRESENTATION Q4 2013 ACQUISITION - Oranje and Kroon
Slide 4: Oranje and Kroon - The Company
PRESENTATION Q4 2013 Oranje and Kroon - The Company The Company Class One Holding Ltd - founded 2000 by three entrepreneurs Two Casino sites - Oranje and Kroon Casino sites targeting customers in the Netherlands and Belgium Strong brands – considered to be top 3 in the Netherlands
Slide 5: Oranje and Kroon - The Company
PRESENTATION Q4 2013 Oranje and Kroon - The Company Standalone figures for Oranje and Kroon The Company P&L 2013 Exclusive and proprietary developed games A powerful affiliate business and +300 domains, Revenues EUR 32.5 million example casino.nl, onlinecasino.nl, Revenue growth 5% idealcasino.nl EB
Slide 6: Oranje and Kroon - The Deal
PRESENTATION Q4 2013 Oranje and Kroon – The Deal Price: 100-145 million euros Maximum EBIT multiple 100 MEUR upfront- 40MEUR in cash and 60MEUR in shares purchase price (based on FY (MEUR) 2013) Additional purchase price in the range of 0-45MEUR 100 4,5 Financing 130* 5,9 Share issue – 60MEUR Bank l
Slide 7: Oranje and Kroon - Reasons for the deal
PRESENTATION Q4 2013 Oranje and Kroon – Reasons for the deal Strategic move - good position in a soon locally regulated market Over 25% of Betssons profit is expected to come from locally regulated markets Very strong brands in the Netherlands Oranje and Kroon adds valuable know-how of the markets i
Slide 8: Oranje and Kroon - Legal
PRESENTATION Q4 2013 Oranje and Kroon – Legal Environment in the Netherlands today Gaming companies operates on international licenses, for example Maltese licenses Oranje and Kroon leads the lobbying work After the regulation 20% tax + 2% levies on GGR No restrictions regarding what type of games t
Slide 9: Oranje and Kroon - Going forward
PRESENTATION Q4 2013 Oranje and Kroon – Going forward Oranje and Kroon within Betsson Lean and efficient organisation – straightforward integration Key employees stays within Betsson The main owners will work as advisors Betsson will continue the important lobbying work that the founders of Oranje a
Slide 10: Q4 Betsson
PRESENTATION Q4 2013 Q4 BETSSON
Slide 11: Business Development Update
PRESENTATION Q4 2013 BUSINESS DEVELOPMENT UPDATE
Slide 12: Mobile first
PRESENTATION Q4 2013 Mobile first Betsson.com mobile – YoY growth of 733%, QoQ growth of 38% Mobile revenues of 80.9 million SEK in total – QoQ growth of 16% Betsafe Native app launched in App Store Betsson Native app launched for Android iPadify all the mobile webs
Slide 13: Development Q4 - Betsson.com
PRESENTATION Q4 2013 Development Q4 Betsson.com Betsson Classics launched - exclusive slots for betsson.com Continued SEO - more than doubled the new customer intake from SEO on betsson.com (in H2) SEO improvement in numbers: SEO NDC +118% YoY, Affiliate NDC -12% YoY
Slide 14: Development Q4 - Other Brands
PRESENTATION Q4 2013 Development Q4 Other Brands New campaign engine enabling faster and more accurate communication NGG migrated to PAAS payment system Launched Automaten brands in the affiliate channel New ATH in Starcasino Malta New office – Betsson Experience Center
Slide 15: Q4 Highlights
PRESENTATION Q4 2013 Q4 HIGHLIGHTS
Slide 16: Q4 Financial highlights
PRESENTATION Q4 2013 Q4 Financial highlights Revenues amounted to SEK 655.5 (651.9) million, equivalent to an increase of 1% and 12% for the full year Casino growth of 8% Negative FX effects of 26.3 million in the quarter Organic growth, adjusted for FX, amounted to 5% SB margin 6,2% in Q4 - last ye
Slide 17: Q4 Financials
PRESENTATION Q4 2013 Q4 Financials Operating income of SEK 150.0 (173.4) million equal to a margin of 22.9 percent (26.6 percent) Cash by end of period SEK 562.5 million (467.2) Earnings per Share SEK 3.24 (3.95) Betsson’s Board of Directors proposes a distribution to the shareholders amounting to S
Slide 18: Revenues
PRESENTATION Q4 2013 Revenues M SEK 700 655.5 600 500 400 300 200 100 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 Q4 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 19: Product and Geographical Split
PRESENTATION Q4 2013 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 20: Gross Profit per Segment
PRESENTATION Q4 2013 Gross Profit per Segment 24.1% (26.9%) B2B, Business to business B2C, Business to 75.9% consumers (73.1%) Figures in brackets refer to the same period last year
Slide 21: Gross profit growth per segment
PRESENTATION Q4 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 36.7 million to B2C in Q4 B2C adj for B2B adj for B2C/B2C B2C B2B Automaten Automaten G
Slide 22: Gross Profit per Product
PRESENTATION Q4 2013 Gross Profit per Product 4.6% 2.3% (5.8%) (2.9%) Casino 26.7% Sportsbook (30.2%) 66.4% Poker (61.2%) Other Figures in brackets refer to the same period last year
Slide 23: Gross Profit growth per Product
PRESENTATION Q4 2013 Gross Profit growth per Product M SEK 400 +8% 350 300 250 200 -12% 150 100 50 -19% -20% 0 Q4 2012 Q4 2013 Other Poker Sportsbook Casino
Slide 24: Gross Profit per Geographical Area (B2C)
PRESENTATION Q4 2013 Gross Profit per Geographical Area (B2C) 0.5% (0.4%) 0.6% 14% (0.3%) (17%) Nordic Countries Other Europe 84.9% EU, outside Nordic region (82.3%) Rest of the world Figures in brackets refer to the same period last year
Slide 25: Key Performance Indicators
PRESENTATION Q4 2013 KEY PERFORMANCE INDICATORS
Slide 26: Q4 Sportsbook
PRESENTATION Q4 2013 Q4 Sportsbook SEK million 2013 – Q4 Growth 2012 – Q4 2013 – Q4 Growth 2012 –Q4 3rd PARTY 3rd PARTY 3rd PARTY SB Q4 SB SB SB SB SB Gross Turnover SB 1,428.6 12,4% 2,666.0 6% 1271.1 2,511.7 Gross Margin SB* 5.5% 2.5% 7.5% 2.8% Gross Profit 79.1 -16,7% 67.2 -4,7% 95.0 70.5 Total ma
Slide 27: Active Customers - Long term trend
PRESENTATION Q4 2013 Active Customers – Long term trend Thousand 600 500 401.4 400 300 200 100 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 2007 2008 2009 2010 2011 2012 2013 * In Q2 2012 UEFA European Football Championship took place.
Slide 28: Active Customers - focus on customers with potential
PRESENTATION Q4 2013 Active Customers - focus on customers with potential -5% +7% Q3 Q4 2013 Active customers (No deposit requirement) Active customers (Deposit requirement)
Slide 29: Registered Customers, 16.5% growth
PRESENTATION Q4 2013 Registered Customers, 16.5% growth Thousand 8 000 6732.7 7 000 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 Q4 2007 2008 2009 2010 2011 2012 2013
Slide 30: Deposits, 5% growth
PRESENTATION Q4 2013 Deposits, 5% growth M SEK 2 500 2 262.3 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 Q4 2009 2010 2011 2012 2013
Slide 31: Events after Q4
PRESENTATION Q4 2013 EVENTS AFTER Q4
Slide 32: Events after Q4
PRESENTATION Q4 2013 The first quarter started with revenue in line with the average level in the previous quarter. This is despite continued negative currency movements Betsson acquired Class One Holding Ltd, which operates the brands, Oranje and Kroon Casino
Slide 33: Q&A
PRESENTATION Q4 2013 Q&A Don’t miss our CMD in Stockholm the 7th of March! Sign up at betssonab.com