Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2017 Earnings Presentation
20 slides from Betsson Ab Class B's earnings presentation, 2017
Slide 1: Q1 2017
Q1 2017 Ulrik Bengtsson, CEO and President
Slide 2: Q1 Solid Quarter
Q1 SOLID QUARTER — Continued strong casino performance — Continued conversion into locally licensed revenue — Continued strong growth in the Nordics — Region Western Europe display growth of 16% and is now larger than region CEECA — Migration of Europe-Bet completed — Acquisition of NetPlay in the U
Slide 3: Financial Snapshot
FINANCIAL SNAPSHOT — Total revenue grew by 10.2% to SEK m Q1 2017 Q1 2016 Change FY 2016 SEK 1,102 m Y/Y Revenue 1,102.0 1,000.1 10.2% 4,117 — Low sportsbook margin — Strong underlying activity EBIT 240.9 250.1 -3.7% 946 — Deposits up 8% EBIT margin 21.9% 25.0% - 23.0% — ATH in active players Net in
Slide 4: 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 4
Slide 5: Revenue Development, Q1
REVENUE DEVELOPMENT, Q1 1 200 1 100 ( 15) 16 38 63 1 000 Revenue SEKm 1 102 Revenue growth: 10.2% 900 1 000 800 Western Europe ROW Revenue Q1 '16 CEECA Revenue Q1 '17 Nordics Growth 13.5% Growth 15.6% Growth -5.7% Growth 75.9% 5
Slide 6: Revenue and EBIT Long Term Trends
REVENUE AND EBIT LONG TERM TRENDS 1200 300 1000 250 800 200 600 150 400 100 200 50 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 — Q4 is normally strongest — EBIT
Slide 7: Conversion of Revenue Base in Line with Strategy
CONVERSION OF REVENUE BASE IN LINE WITH STRATEGY Q1 2015 Q1 2016 Q1 2017 8% 13% 20% 23% 14% 12% 69% 68% 73% Locally licensed Realm Other Locally licensed Realm Other Locally licensed Realm Other — Acquisition of Europe-Bet added — Added new licenses in four jurisdictions — Acquired licensed company
Slide 8: License Revenue, B2B Associate Realm
LICENSE REVENUE, B2B ASSOCIATE REALM 150 — License revenue SEK 128.2 million (139.4) 100 — 16% currency decline Y/Y SEK m — 9% growth in local currency 50 — Realm is 11.6% (13.9) of Group revenue 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 — Stable outlook in local currency Revenue, reported — Continu
Slide 9: Strong Growth in Western Europe and Nordics
STRONG GROWTH IN WESTERN EUROPE AND NORDICS Geography Product 3% 3% 23% 23% Nordic (+14%) Casino (+23) 48% Western Europe (+16%) Sportsbook (-15%) CEECA (-6%) Other games (-25%) RoW (+76%) 75% 26% — Region Western Europe now larger than region CEECA — Casino +23% Y/Y — Sportbook Western Europe back
Slide 10: Turnover Excluding Realm Is Growing
TURNOVER EXCLUDING REALM IS GROWING Sportsbook, turnover and margin — Sportsbook turnover SEK 6,006 million 8 000 9% (6,718) 7 000 8% — SB turnover includes 100% B2B 6 000 7% — Decline mainly due to weak TYR currency 5 000 6% — Turnover excl. Realm is approx. +15% Y/Y 5% — Sportsbook margin at 6.1%
Slide 11: Continued Strong Underlying Activity
CONTINUED STRONG UNDERLYING ACTIVITY Active players Deposits 700 4000 600 3500 3000 500 2500 400 2000 300 1500 200 1000 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 2017 2012 2013 2014 201
Slide 12: Business Update
Q1 2017 Presentation BUSINESS UPDATE
Slide 13: Long-Term View on NetPlay Acquisition
LONG-TERM VIEW ON NETPLAY ACQUISITION — Total consideration GBP 26.4 m — Net of cash: GBP 18.9 m — Acquisition closed 31 March — Expected revenue FY 2017 of around GBP 25 m — Synergies — Consolidation of operations — Delisting of PLC — Migration to Techsson (2019) — Restructuring cost — Long-term vi
Slide 14: Acquisition of Licensed Operator in Spain
ACQUISITION OF LICENSED OPERATOR IN SPAIN — Subscale operator in regulated environment — Acquisition closed 31 March 2017 — Consideration EUR 3 m — Foothold in the Spanish market — All relevant licenses in Spain incl. Sportsbook — 260,000 registered customers — Will be operated under StarCasino.es 1
Slide 15: Product Update
PRODUCT UPDATE Sportsbook Casino Europe-Bet — Added snooker to — 1,902 games, of — Migrated to offer which 1,446 on Techsson — More live markets mobile — Best mobile — Betsafe first operator — New exclusive casino in region to pay out on Chelsea as PL winners games launched 15
Slide 16: Regulatory Update
REGULATORY UPDATE — License in Spain — 20.3% (13.3) of revenues locally taxed — SEK 43.3 m (28.8) betting duties paid — Report on new gambling regulation for Sweden — 18% tax on GGR — Licenses for casino, sportsbook and other games — Implementation earliest Q1 2019 — Re-regulation of Netherlands bes
Slide 17: Trading Update
TRADING UPDATE — Revenue in the beginning of the second quarter: — higher than the daily average for the same quarter last year — lower than the daily average for the first quarter 2017 — The underlying activity remains strong 17
Slide 18: Outlook
OUTLOOK — The second quarter is normally seasonally weak. The company will continue its planned investments in marketing and product development. Operating expenses in the second quarter 2017 are therefore expected to grow slightly more than 10 percent, including acquired entities, compared to the o
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Slide 20: Betsson AB
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