Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2017 Earnings Presentation
19 slides from Betsson Ab Class B's earnings presentation, 2017
Slide 1: Q2 2017
Q2 2017 Ulrik Bengtsson President and CEO
Slide 2: Highlights Q2
HIGHLIGHTS Q2 — Strong growth. Total revenue +26%, of which 15% organic — Casino growth of 28%, 3rd consecutive quarter with >20% Casino growth — 15% Sportsbook growth — 48% Sportsbook growth in the Nordics — Driven by product development — Gaining market share in all Nordic countries and region Wes
Slide 3: Quarterly Development
QUARTERLY DEVELOPMENT Revenue Earnings per share (EPS) 4 500 7.00 4 000 6.00 3 500 5.00 3 000 2 500 4.00 SEK m SEK 2 000 3.00 1 500 2.00 1 000 1.00 500 - - 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 3
Slide 4: Financial Snapshot
FINANCIAL SNAPSHOT — Revenue grew by 26% SEK m Q2 2017 Q2 2016 Change FY 2016 — EBIT grew by 31% to SEK 206.9 m Revenue 1,177 935 26% 4,117 — Betting duties grew by 71% to SEK 53.5 m Gross profit 851.1 694.6 23% 3,078 — Licence fee from Realm declined by 16% Gross margin 72.2% 74.3% - 74.8% — Negati
Slide 5: Adjusted Income Statement
ADJUSTED INCOME STATEMENT 2017 Q2 Acquired entities1) SEK million Betsson adjusted Currency effect (past 12 mts) Betsson reported Reported Q2 2016 Revenue 1,065.6 +8.3 +103.6 1,177.5 935.4 Operating expenses 563.8 +18.4 +62.1 644.2 536.3 Operating income 217.8 -17.8 +6.8 206.9 158.3 (EBIT) Operating
Slide 6: Revenue Conversion Continues
REVENUE CONVERSION CONTINUES Q2 2015 Q2 2016 Q2 2017 7% 17% 24% 19% 14% 10% 66% 69% 74% Locally licensed Realm Other Locally licensed Realm Other Locally licensed Realm Other — Licences in 5 markets — Licences in 8 markets — Licences in 11 markets — Betting duties amounted to SEK 15.2 m — Betting du
Slide 7: Revenue and EBIT Long Term Trends
REVENUE AND EBIT LONG TERM TRENDS 1,400 Revenue 300 Operating Income (EBIT) 1,200 250 1,000 200 800 SEK m SEK m 150 600 100 400 200 50 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 2017 2012
Slide 8: Revenue Development per Region, Q2
REVENUE DEVELOPMENT PER REGION, Q2 1,200 ( 41) 16 1,100 143 1,000 124 900 800 700 600 1 178 Revenue SEKm 500 935 400 Revenue growth: 26% 300 200 100 0 Nordics Revenue Q2 '16 Revenue Q2 '17 CEECA Other Western Europe Growth 28% Growth 69% Growth -15% Growth 64% 8
Slide 9: Western Europe Now 30% of the Business
WESTERN EUROPE NOW 30% OF THE BUSINESS Revenue distribution, Geography Revenue distribution, Product 3% 4% 19% 22% 47% Nordic (+28%) Western Europe (+69%) Casino (+28) CEECA (-15%) Sportsbook (+15%) RoW (+64%) Other games (+55%) 30% 74% 9
Slide 10: Continued Strong Growth in Casino
CONTINUED STRONG GROWTH IN CASINO 1,000 — Third consecutive quarter of +20% casino 900 growth 800 — Casino +28% Y/Y, organic +20% 700 — Mobile casino growth +76% Y/Y 600 SEK m 500 — Sportsbook +15% Y/Y 400 — Driven by product development and 48% SB 300 growth in the Nordics 200 — Expect Sportsbook t
Slide 11: Turnover Excluding Realm Is Growing
TURNOVER EXCLUDING REALM IS GROWING — Sportsbook turnover SEK 5,775 m (6,009) Sportsbook turnover — Decline in TYR had SEK 392 m negative 8,000 7,000 impact on turnover 6,000 5,000 SEK m — Turnover excl. Realm is approx. +25% Y/Y 4,000 3,000 — Sportsbook margin at 6.4% (5.7) 2,000 1,000 0 — 8-quarte
Slide 12: Continued Strong Underlying Activity
CONTINUED STRONG UNDERLYING ACTIVITY 700 Active players 4,500 Deposits 4,000 600 3,500 500 3,000 400 2,500 SEK m 000's 300 2,000 1,500 200 1,000 100 500 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 20
Slide 13: Business Update
Q2 2017 Presentation BUSINESS UPDATE
Slide 14: Impact of NetPlay TV and Premier Casino Acquisitions
IMPACT OF NETPLAY TV AND PREMIER CASINO ACQUISITIONS NetPlay TV Accounting implications, Q2 2017 SEK m — Delisting and downsizing of Board and Revenue 70.4 management Operating income 0.7 — Payment operations, CRM and customer service merged with Betsson Malta — Profitability in NetPlay brands and —
Slide 15: Sportsbook - Horse Racing Launched and Roll-out of New Mobile Sportsbook
SPORTSBOOK - HORSE RACING LAUNCHED AND ROLL-OUT OF NEW MOBILE SPORTSBOOK — Racing launched on Betsafe in time for Ascot — Improved retention of sportsbook customers — Roll-out on rest of brands in Q3/Q4 — Started roll-out of new mobile sportsbook built on OBG framework — Improved speed — Better user
Slide 16: World's Largest Casino Getting Bigger
WORLD’S LARGEST CASINO GETTING BIGGER — New casino providers added — Novomatic/Greentube games live — EGT games live — New providers for Italy — More than 80 games providers — 2,096 games available, of which 1,503 on mobile — More exclusive games launched 16
Slide 17: Regulatory Update
REGULATORY UPDATE — 23.9% (13.3) of revenues locally taxed — SEK 53.5 m (31.3) betting duties paid — Re-regulation of Swedish market — Bill expected March 2018 — New regulation expected H2 2019 — Re-regulation of Netherlands on hold — Likely delayed until after next election 2021 — Current Dutch law
Slide 18: Trading Update
Sarah Sjöström to win 4 gold medals in Budapest @ odds 2.10 on Betsson.com TRADING UPDATE — The daily revenue in the quarter up until 17 July was — higher than the average daily revenue of the full second quarter 2017, and — as expected, much higher than the average daily revenue of the full third q
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