Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q4 2020 Earnings Presentation
30 slides from Betsson Ab Class B's earnings presentation, 2021
Slide 1: Q4 2020
Q4 2020 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Strategic drivers & Achievements ▪ Sustainable operations ▪ Financial overview Pontus Lindwall ▪ Product & Technology update CEO, Betsson AB ▪ Regulation ▪ Summary Martin Öhman ▪ Q&A CFO, Betsson AB 2
Slide 3: Highlights
HIGHLIGHTS betsson ab
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS ATH ATH REVENUES EBIT SPORTSBOOK REVENUE SEK 1.8b SEK 318m +47% +37% YoY ORGANIC +59% YoY CASINO YoY GROWTH GROWTH REVENUE GROWTH REVENUE +36% +33% EBIT YoY GROWTH MARGIN YoY GROWTH 18% 4
Slide 5: Strategic Drivers & Achievements
STRATEGIC DRIVERS& ACHIEVEMENTS
Slide 6: The Betsson Strategy Supports Growth
THE BETSSON STRATEGY SUPPORTS GROWTH VISION Deliver the best customer experience in the gaming industry MISSION AMBITION Be a long-term, leading Be a customer-centric gaming company online gaming company that sustainably outgrows the market 1 EXISTING MARKETS NEW MARKETS B2B 2 M&A STRATEGIC 3 GROWTH
Slide 7: Existing Markets - Address Attractive Opportunities
EXISTING MARKETS - ADDRESS ATTRACTIVE OPPORTUNITIES EXISTING MARKETS NEW MARKETS B2B M&A Bingo.IT launched 27% growth YoY Continouos product Consolidation in the UK in Italy in the Nordics development to offer to focus on one brand the best customer for growth experience 7
Slide 8: Expand Into New Markets With High Growth Potential
EXPAND INTO NEW MARKETS WITH HIGH GROWTH POTENTIAL EXISTING MARKETS NEW MARKETS B2B M&A Licence obtained in Growth in CEECA and ROW The Betsafe brand launched Argentina, as one of seven supports strategy in Kenya operators 8
Slide 9: B2B Opportunities
B2B OPPORTUNITIES EXISTING MARKETS NEW MARKETS B2B M&A — B2B organisation is being built up — B2B client ibet is up and running since December 2020 — Long-time B2B client Realm opened up a new platform with Betsson’s Sportsbook - JetBahis Market interest for Betsson’s Sportsbook 9
Slide 10: The US Market
THE US MARKET — 10 year agreement with Dostal Alley Casino to enter the Colorado online sports betting market — Betsson obtained a sports betting license in Colorado on 17th December 2020 — Ongoing work include platform development, market adaptations, regulatory requirements — Betsson has chosen TG
Slide 11: Five Operating Principles Will Drive Value Creation
FIVE OPERATING PRINCIPLES WILL DRIVE VALUE CREATION Live the Betsson Responsible business culture and values: putting the player first One Betsson, Passion, Global scope with and Fair Play local focus Operational excellence driving Preferred employer efficiency and and business partner effectiveness
Slide 12: Sustainable Operations
SUSTAINABLE OPERATIONS betsson ab
Slide 13: Digital Transition Accelerating During the Pandemic
DIGITAL TRANSITION ACCELERATING DURING THE PANDEMIC Total global gambling market 2010 - 2019 and 2020 – 2025E CAGR 10-19 CAGR 21-25 2020 figures highly uncertain due to Covid-19 +9% +3% Offline Online 447 460 416 430 386 392 376 368 319 332 343 350 345 355 74 80 87 94 11% 9% 300 43 48 54 298 66 25 2
Slide 14: Revenue Growth with High Customer Protection and Social Responsibility
REVENUE GROWTH WITH HIGH CUSTOMER PROTECTION AND SOCIAL RESPONSIBILITY Manual & automatic interactions Betsson proactively increased vigilance in recognition of its customers’ temporarily Q1: 26,300 | Q2: 55,300 | Q3: 91,800 changed circumstances during the pandemic Q4: 94,052 to ensure their safety
Slide 15: Financial Overview
FINANCIAL OVERVIEW betsson ab
Slide 16: 5Y Revenue Development
5Y REVENUE DEVELOPMENT 1 800 1 620 1 440 1 260 SEKm 1 080 900 720 540 360 180 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Revenues 16
Slide 17: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +37% 134 141 74 123 1763 MSEK 1289 Revenue Q4'19 Nordics Western Europe CEECA RoW Revenue Q4'20 Regions 17
Slide 18: Casino Development in Q4
CASINO DEVELOPMENT IN Q4 Casino revenue Casino revenue up by 33% (27% organic) YoY, 1400 73% (75%) of total revenues SEKm 1200 1000 Mobile gambling 80% (68%) 800 of total casino revenue 600 400 Growth in all regions 200 provide more even geographical distribution 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2
Slide 19: Sportsbook Development in Q4
SPORTSBOOK DEVELOPMENT IN Q4 10000 9,0% 9000 8,0% Sportsbook turnover up by 23% YoY, 8000 7,0% to all time high SEK 8,934m 7000 6,0% SEKm 6000 5,0% 5000 4,0% 4000 3000 3,0% 2000 2,0% Sportsbook margin at 7.3% (6.8%), 1000 1,0% in line with 8-quarter average 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0,0% 20
Slide 20: EBIT Development YoY
EBIT DEVELOPMENT YOY 199 Adjusted EBIT EBIT EBIT Margin Margin Margin 15.5% 473 18.0% 98 20.6% 26 44 MSEK 33 318 362 200 Q4 19 EBIT Revenues Cost of Services Marketing Personnel Other Costs Q4 20 EBIT One-off provision Q4 20 adjusted Sold Expenses Expenses EBIT 20
Slide 21: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION SEK m Q4 2020 Q4 2019 — Operating cash flow — Mainly driven by operating income and changes in working capital, in the form of decreased Operating cash flow 224 238 player liabilities and increased receivables on payment providers Cash flow from investing -111 -76 acti
Slide 22: Proposal on Dividend After Strong 2020
PROPOSAL ON DIVIDEND AFTER STRONG 2020 The total distributed through an 2020 Revenue automatic redemption process will be of SEK 6.4b SEK 502.9m DVIDIDEND The Board of Directors proposes to the 2020 EBIT 2020 AGM a dividend (per share) of SEK 1,125m SEK 3.68 In line with the dividend policy, the 202
Slide 23: Q1 2021 Trading Update
Q1 2021 TRADING UPDATE* Average daily revenue until 5 February was 11% (14% organic) higher than the average daily revenue of the full Q1 2020 Q1 Adjusted for negative currency effects average daily revenue was 26% higher than the average daily revenue of the full Q1 2020 * This trading update is an
Slide 24: Regulation
REGULATION betsson ab
Slide 25: Regulatory Update
REGULATORY UPDATE GERMANY SWEDEN NETHERLANDS Interim tolerance regime The temporary restrictions on implemented from 15 October 2020 online casino introduced by the Licensing process delayed by one with additional restrictions from Swedish government extended six month brings one month delay in 15 D
Slide 26: Impact from Regulations
IMPACT FROM REGULATIONS - Estimated revenue drop of 70% due to tolerance regime GERMANY - Channelisation will go down due to regulatory framework as players find alternative offers - Licensing process expected to start 1 April 2021, and first licenses expected six months later NETHERLANDS - “Cooling
Slide 27: Product & Technology Update
PRODUCT & TECHNOLOGY UPDATE betsson ab
Slide 28: Q4 Activities in Product Development
Q4 ACTIVITIES IN PRODUCT DEVELOPMENT NEW LAUNCHES CONTINUED ROLL OUT PAYMENTS OF NEW NATIVE APPS Launch of in Kenya in November Faster withdrawals Launch of new brand Next Gen Mobile apps for SGA launched on the Betsson brand: New payments providers offering casino, bingo, Most modern Casino App in
Slide 29: Summary Q4
SUMMARY Q4 ▪ All-time high revenue driven by both casino and sport - Growth in all regions - All-time high revenue in sportsbook ▪ EBIT SEK 318m, 59% growth, EBIT adjusted for one-off provisions amounts to SEK 362m ▪ Up to speed in executing our growth strategy - Expansion on, and evaluation of, exi
Slide 30: betsson ab
betsson ab