Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2020 Earnings Presentation
26 slides from Betsson Ab Class B's earnings presentation, 2020
Slide 1: Q2 2020
Q2 2020 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE ▪ Overview ▪ Online entertainment resilient to crisis ▪ Financial overview ▪ Q3 Trading update Pontus Lindwall ▪ Product & Technology update CEO, Betsson AB ▪ Regulation & Sustainability ▪ Growth drivers and summary Martin Öhman ▪ Q&A CFO, Betsson AB 2
Slide 3: Overview
OVERVIEW betsson ab
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS ATH SPORTSBOOK EBIT REVENUES REVENUE SEK 1.5bn SEK 218m -34% ORGANIC +11% YoY CASINO +20% YoY YoY DECLINE REVENUE INCREASE REVENUE INCREASE +12% +40% EBIT YoY GROWTH MARGIN YoY GROWTH 14.2% 4
Slide 5: Acquisitions & New Market Entries
ACQUISITIONS & NEW MARKET ENTRIES Completion of the Milestone US market entry with GiG B2C acquisition sports betting B2C in Colorado New colleagues fully Ongoing A foundation for our integrated at Betsson B2B ambitions organic & Market expansion in Africa with acquisitive Acquisition of 70% of the
Slide 6: Online Entertainment Resilient to Crisis
ONLINE ENTERTAINMENT RESILIENT TO CRISIS
Slide 7: The Gambling Market is Resilient to Crisis
THE GAMBLING MARKET IS RESILIENT TO CRISIS 7 90 Global Online Gambling Market Gross Win 20% EUR Billions 80 COVID-19 18% 16% 70 14% +12% 60 12% 50 10% 40 FINANCIAL MERS 8% 30 CRISIS 6% SARS 20 4% 10 2% - 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e 20
Slide 8: Diversification Creates Resilience
DIVERSIFICATION CREATES RESILIENCE Diversified product and brand portfolio, geographical spread plus strong finances balance market fluctuations Remote working continued with all colleagues delivering a stand-out performance Uplift in casino and an accelerated transition from retail to online gambli
Slide 9: Financial Overview
FINANCIAL OVERVIEW betsson ab
Slide 10: 5Y Revenue Development
5Y REVENUE DEVELOPMENT 1600 1400 1200 1000 800 SEKm 600 400 200 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Revenues 10
Slide 11: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +20% 52 79 34 158 1533 MSEK 1278 Revenue Q2'19 Nordics Western Europe CEECA RoW Revenue Q2'20 Regions 11
Slide 12: Casino Development
CASINO DEVELOPMENT Casino revenue Casino revenue up by 40% 1400 (29% organic) YoY, 84% (72%) 1200 of total revenues 1000 800 Mobile gambling 72% (69%) of total casino revenues 600 400 200 Casino showed growth in all regions 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020
Slide 13: Sportsbook Development
SPORTSBOOK DEVELOPMENT 8000 9,00% 7000 8,00% 7,00% Sportsbook revenue declined by 34% 6000 6,00% 5000 YoY, representing 15% of total revenue 5,00% SEKm 4000 4,00% 3000 3,00% 2000 2,00% Mobile represented 77% of total 1000 1,00% 0 0,00% sportsbook revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018
Slide 14: EBIT Development YoY
EBIT DEVELOPMENT YOY 155 255 EBIT EBIT 25 Margin Margin 22 14.2% 32 MSEK 15.4% 197 218 Q2 19 EBIT Revenues Cost of Services Sold Marketing Expenses Personnel Expenses Other Costs Q2 20 EBIT 14
Slide 15: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION SEK m Q2 2020 Q2 2019 6M 2020 — Operating cash flow SEK 344 million — Mainly driven by operating income Operating cash flow 344 391 666 — Investments — Driven by acquisition of GiG’s B2C operation Cash flow from -388 -58 -476 investing activities & investments in Betss
Slide 16: Q3 2020 Trading Update
Q3 2020 TRADING UPDATE betsson ab
Slide 17: Q3 2020 Trading Update
Q3 2020 TRADING UPDATE* Average daily revenue until 16 July was 35% (23% organic) higher than the average daily revenue of the full third quarter 2019 - All major business activities remain as normal - Near-term trading hard to predict due to: - uncertainty on major sporting events’ timetable - dura
Slide 18: Product & Technology Update
PRODUCT & TECHNOLOGY UPDATE betsson ab
Slide 19: Product Development and Launches in Q2
PPRODUCT DEVELOPMENT AND LAUNCHES IN Q2O Increased number of markets, events and games in both sports and casino to improve UX Added features such as 2 goals ‘Early Payout’ in football Addition of scoreboards for both eSports and table tennis plus ‘Point Markets’ in tennis Significantly increased pr
Slide 20: Regulation & Sustainability
REGULATION & SUSTAINABILITY
Slide 21: Regulatory Update
REGULATORY UPDATE THE NETHERLANDS SWEDEN LATVIA Market opening postponed to The Swedish government Emergency measures for covid-19, July 2021, the 24 months’ implemented temporary suspension of all gambling cooling-off period extended by restrictions on online casino licences including online six mo
Slide 22: Heightened Responsible Gambling Vigilance During COVID-19
HEIGHTENED RESPONSIBLE GAMBLING VIGILANCE DURING COVID-19 Betsson proactively increased vigilance in Manual & Push real- recognition of its customers’ temporarily automatic time RG changed circumstances during the pandemic interactions notifications to ensure their safety is maintained Q1: 26,300 Q2
Slide 23: Growth Drivers & Summary
GROWTH DRIVERS & SUMMARY betsson ab
Slide 24: Key Enablers for Growth
KEY ENABLERS FOR GROWTH Proprietary Operational technology excellence, and scale passionate and secure the talented future Transition people from land- Strong based to financials to online gaming deliver growth Diversified drives industry business growth through multi- brand portfolio and geographic
Slide 25: Summary
SUMMARY ▪ All-time high revenues and a strong start to Q3 ▪ Market entries into the US in Colorado, Kenya and Colombia ▪ Resilient and primed for both organic and acquisitive growth 25
Slide 26: Betsson AB
betsson ab