Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q4 2022 Earnings Presentation
20 slides from Betsson Ab Class B's earnings presentation, Feb 14, 2023
Slide 1: Q4 2022 Presentation of results
Q4 2022 Presentation of results
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Business update ▪ Regulatory update ▪ Financials Pontus Lindwall Martin Öhman President & CEO, CFO, Betsson AB ▪ Trading update Betsson AB ▪ Summary ▪ Q&A 2
Slide 3: Long history of profitable growth
LONG HISTORY OF PROFITABLE GROWTH Revenue and profitability (MEUR) 777,2 800 657,7 609,3 600 528,4 489,6 488,5 434,8 397,8 400 333,6 286,3 253,1 200 99,9 116,4 107,3 117,6 131,2 69,5 90,3 94,7 91,6 81,7 66,3 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue EBIT Cash conversion (MEUR)
Slide 4: FY 2022 Highlights
FY 2022 HIGHLIGHTS REVENUE EBIT EBIT 777 MEUR 131 MEUR MARGIN +18% YoY +27% organic +11% YoY 16.9% PROPOSED OPERATING DIVIDEND CASH FLOW DISTRIBUTION 179 MEUR 59.7 MEUR 4 All-Time High Level
Slide 5: Q4 2022 Key Figures
Q4 2022 KEY FIGURES CUSTOMER REVENUE EBIT DEPOSITS EBIT ACTIVE 221 MEUR 40 MEUR MARGIN CUSTOMERS 1,096 +40% YoY +48% organic +92% YoY 18.1% 1.4M MEUR +40% YoY CASINO CASINO SPORTSBOOK SPORTSBOOK TURNOVER REVENUE TURNOVER REVENUE +38% +76% +35% +27% YoY YoY YoY YoY 5 All-Time High Level
Slide 6: Our Markets – Some Activities
OUR MARKETS – SOME ACTIVITIES EXISTING MARKETS NEW MARKETS B2B M&A Peru: Extended ties with the Peruvian Football Federation for the naming rights of the First Division football league – Liga 1 Betsson Chile: Official naming sponsor of the Chilean First Division football league - Campeonato Betsson
Slide 7: B2B & Strive Gaming
B2B & STRIVE GAMING EXISTING NEW MARKETS B2B M&A MARKETS 10+ customers in total for the Group 22% of revenue in Q4 2022 Live Brands ▪ 40% owned by Betsson ▪ 6 customers signed ▪ Launched 3 brands in North America ▪ 3 signed customers still to go live in H1 2023 ▪ Launched market-leading fully native
Slide 8: Product & Technology Development
PRODUCT & TECHNOLOGY DEVELOPMENT Added Launched sportsbook native app functionality in Greece with boosted odds for live betting Cloud migration and native app development continued 8
Slide 9: Awards in 2022
AWARDS IN 2022 28 Awards won during 2022 9
Slide 10: Sustainability – UN's Global Compact
SUSTAINABILITY –UN’S GLOBAL COMPACT Betsson became a participant of the United Nations Global Compact initiative. Pledged to implement the ten principles of the Global Compact into its strategies and operations, including human rights, labour, environment, and anti-corruption. 10
Slide 11: Sustainability: Consumer Protection Zone at ICE
SUSTAINABILITY: Consumer Protection Zone at ICE Betsson supported the Consumer Protection Zone at ICE London 2023 – a dedicated area showcasing innovation in safer gaming. In 2023, the donations of supporting companies went to: Better Change (UK) Betknowmore (UK) National Council on AGOG (the Nether
Slide 12: Regulatory Update
REGULATORY UPDATE NORWAY PERU ARGENTINA FINLAND Dialogue ongoing with Regulation is Obtained online The government is the Norwegian somewhat delayed at gaming license in the considering to replace the Gambling Authority this stage due to the province of Cordoba monopoly with a license- regarding cha
Slide 13: Development and KPIs
DEVELOPMENT AND KPIs Revenue (MEUR) ATH revenue of Active customers (000s) 250 +40% 220.6 MEUR 1 600 +23% 1 400 200 +48% organic 1 200 YoY 1 000 150 800 100 600 400 50 200 0 0 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Othe
Slide 14: Revenue Development by Region YoY
REVENUE DEVELOPMENT BY REGION YOY +40% +48% 1 11 26 RoW 2% 30 Nordics 1 5 24% CEECA MEUR 232 38% 221 158 Latin America Western 24% Europe 12% Q4 21 Nordics Western CEECA LatAm Rest of world Q4 22 FX and M&A Q4 22 revenue Europe reported effects organic revenue revenue 14
Slide 15: EBIT Development YoY
EBIT DEVELOPMENT YOY +92% MEUR Q4 2022 Q4 2021 EBIT EBIT Margin Margin 13.2% 18.1% Revenue 221 158 16 Gross profit 145 98 11 63 8 MEUR 2 Gross margin 65.6% 62.0% 7 Opex 105 77 40 21 EBIT 40 21 Q4 21 EBIT Revenue Cost of Marketing Personnel D&A Other Costs Q4 22 EBIT Services Sold Expenses Expenses 1
Slide 16: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION — Operating cash flow MEUR Q4 2022 Q4 2021 — Positive working capital impact due to decrease in receivables from payment service providers Operating cash flow 75.5 13.4 — Investments — Investments in own development (capitalisation) and Cash flow from investing -17.9 -
Slide 17: Proposed Cash Return to Shareholders
PROPOSED CASH RETURN TO SHAREHOLDERS Total distribution through automatic redemption 2022 Revenue process 777 (658) MEUR 59.7 (50.3) MEUR CASH DISTRIBUTION The Board of Directors proposes to the AGM a total 2022 Net income attributable to distribution per share of 2022 Parent Company equity holders
Slide 18: Q1 2023 Trading Update
Q1 2023 TRADING UPDATE* Average daily revenue up to and including 8 February was 34% higher than the average daily revenue of the full quarter in Q1 2022 Q1 The average organic daily revenue was 41% higher than the average daily revenue of the full quarter in Q1 2022 During this period, the sportsbo
Slide 19: Summary Q4
SUMMARY Q4 ▪ ATH revenue and EBIT for the Group, driven by new customers and high activity ▪ 48% organic revenue growth Y/Y ▪ Record turnover and revenue in casino and sportsbook ▪ Growth in all our regions, LATAM main growth driver ▪ Strong balance sheet and cash flow generation ▪ Looking ahead to
Slide 20: Thank You
betsson ab THANK YOU TIME FOR Q&A