Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2013 Earnings Presentation
44 slides from Betsson Ab Class B's earnings presentation, 2013
Slide 1: Q1 2013 – Revenues increased by 19 percent
PRESENTATION Q1 2013 Q1 2013 Revenues increased by 19 percent
Slide 2: Presentation Outline
PRESENTATION Q1 2013 Presentation Outline Introduction B2C – Business to Consumers B2B – Business to Business Regulated Markets Q1 Highlights Mobile Legal Update Events after Q1 Q&A
Slide 3: Introduction
PRESENTATION Q1 2013 INTRODUCTION
Slide 4: Betsson - years in gaming
PRESENTATION Q1 2013 Betsson - 50 years in gaming 743 (459) employees + 195 (165) full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 1 000 000 000 Licensed in Malta, Italy, Denmark and Estonia
Slide 5: Multi Supplier and Multi Brand Strategy
PRESENTATION Q1 2013 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 6: Business model development
PRESENTATION Q1 2013 Business model development Betsson continues to invest in a number of internal projects in order to optimise its business for growth: “E-Commerce” capabilities • Business Intelligence • One-to-one marketing • SEO • Conversion optimisation Backend efficiency • Platform migrations
Slide 7: Automaten acquisition
PRESENTATION Q1 2013 Automaten acquisition After the transaction Betsson is fully responsible for the brands Sverigeautomaten, Norgesautomaten and Danmarksautomaten revenues will grow strongly over the coming 12 months Annual savings of 52.7 SEKm, based on 2012 years acitivity level. Low risk acquis
Slide 8: B2C – Business to Consumers
PRESENTATION Q1 2013 B2C – BUSINESS TO CONSUMERS
Slide 9: PRESENTATION Q1 2013
PRESENTATION Q1 2013
Slide 10: Betsafe - Back on track
PRESENTATION Q1 2013 Betsafe - Back on track Betsafe’s performance on the right track Best performing B2C brand in March Sportsbook and mobile more than fulfill our expectations, goes for all brands in the group. that
Slide 11: Increased media spending
PRESENTATION Q1 2013 Increased media spending Gross Media Spending (mSEK) Sweden 1400 1 266 +41% 1200 In 2012 E-Gaming operators grew +52%. 900 1000 +44% 845 For 2013 Betsson estimate a continued 800 +52% 625 556 strong growth in media investments. 600 +61% 345 400 Need to spend more to meet competi
Slide 12: Betsson – Marketing
PRESENTATION Q1 2013 Betsson – Marketing Campaign in the Nordics for Betsson.com including Fredrik Ljungberg (Sweden), Thomas Myhre (Norway) and Jari Litmannen (Finland) Aim to build long term brand value New media channels used after Gerdin/Sjöberg verdict
Slide 13: Betsafe & Nordicbet – Marketing
PRESENTATION Q1 2013 Betsafe & Nordicbet – Marketing Betsafe New slogan – In it to win it Tv commercial running Sponsored athletes at UFC Betsafe Alpine challenge in Åre Gumball 3000 coming up Nordicbet Commercial running with Nordicbet ambassador Börje Salming Next big event – Ice Hockey World Cham
Slide 14: B2B – Business to Business
PRESENTATION Q1 2013 B2B – BUSINESS TO BUSINESS
Slide 15: PRESENTATION Q1 2013
PRESENTATION Q1 2013
Slide 16: Gross profit development, B2B
PRESENTATION Q1 2013 Gross profit development, B2B M SEK Gross profit for B2B amounted 180 165.4 to SEK 165.4 (142.8) million, an 160 142.8 increase of 16 percent 140 120 Strong development driven by 100 Sportsbook growth 80 60 Going forward, Automaten will be 40 excluded from B2B 20 0 Q1 Q2 Q3 Q4 Q
Slide 17: Regulated Markets
PRESENTATION Q1 2013 REGULATED MARKETS
Slide 18: Italy, Denmark, China
PRESENTATION Q1 2013 Italy, Denmark, China The development of the Italian casino site Starcasino.it has been slower than expected. However, there are still opportunities to establish a successful business in Italy. Danish sites continues to grow and gave a positive net contribution in Q1. The set of
Slide 19: Q1 Highlights
PRESENTATION Q1 2013 Q1 HIGHLIGHTS
Slide 20: Q1 Financials
PRESENTATION Q1 2013 Q1 Financials Revenues amounted to SEK 638.7 (536) million, equivalent to an increase of 19 percent Operating income amounted to SEK 161.1 (174) million Operating margin (percent of Revenues) amounted to 25.1 percent (31.9 percent)
Slide 21: Q1 Financials
PRESENTATION Q1 2013 Q1 Financials Deposits in all of Betsson’s gaming solutions amounted to SEK 2,113.9 (1,468.6) million, which represents an increase of 44 percent Cash by end of period SEK 606.4 million (588.4) Earnings per Share SEK 3.54 (3.91)
Slide 22: Revenues
PRESENTATION Q1 2013 Revenues M SEK 638.7 700 600 500 400 300 200 100 0 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 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 23: Product and Geographical Split
PRESENTATION Q1 2013 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 24: Gross Profit per Segment
PRESENTATION Q1 2013 Gross Profit per Segment B2B, Business to business 30.6% 69.4% B2C, Business to consumers
Slide 25: Gross Profit per Product
PRESENTATION Q1 2013 Gross Profit per Product M SEK 600 Other 20 500 Poker 31 Sportsbook Casino 164 400 300 200 325 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 2012 2013
Slide 26: Gross Profit per Product
PRESENTATION Q1 2013 Gross Profit per Product 6% 4% Casino Sportsbook 30% Poker 60% Other
Slide 27: Gross Profit per Geographical Area (B2C)
PRESENTATION Q1 2013 Gross Profit per Geographical Area (B2C) 0.5% 18% Nordic Countries 0.4% Other Europe 81.1% EU, outside Nordic region Rest of the world
Slide 28: Key Performance Indicators
PRESENTATION Q1 2013 KEY PERFORMANCE INDICATORS
Slide 29: ATH in SB Turnover
PRESENTATION Q1 2013 ATH in SB Turnover M SEK Sportsbook Turnover Development 4500 4000 3873.6 3500 3000 2500 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013
Slide 30: Q1 SB Margins
PRESENTATION Q1 2013 Q1 SB Margins SEK million 2013 – Q1 2012 – Q1 2013 – Q1 2012 –Q1 3rd PARTY 3rd PARTY SB SB SB SB Gross Turnover SB 1,230.6 2,643.0 645.5 1,998.6 Gross Margin SB 6.7% 3.1% 6.9% 3.2% SEK million Gross Profit 82.8 81.2 44.6 63.2 * Margins after allocated costs
Slide 31: Active Customers
PRESENTATION Q1 2013 Active Customers Thousand 600 479.2 500 400 300 200 100 0 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 2007 2008 2009 2010 2011 2012 2013
Slide 32: Registered Customers
PRESENTATION Q1 2013 Registered Customers Thousand 7 000 6 044.2 6 000 5 000 4 000 3 000 2 000 1 000 0 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 2007 2008 2009 2010 2011 2012 2013
Slide 33: Deposits
PRESENTATION Q1 2013 Deposits M SEK 2 500 2 113.9 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013
Slide 34: Growth Indicators Summary
PRESENTATION Q1 2013 Growth Indicators Summary Y/Y Q/Q Active Customers 18% -8% Registered Customers 55% 5% Revenue 19% -2% Customer Deposits* 44% -2% Gross Turnover SB* 47% 2% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 35: Mobile
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Slide 36: Mobile Growth
PRESENTATION Q1 2013 Mobile Growth Mobile gross winning Strong development throughout 2012, Betsson management believes this trend will continue in 2013 Mobile revenues revenues 8% of total will grow revenues. strongly overMobile the growth from coming 12Q1 2012 is 485% months Mobile gross winning h
Slide 37: Mobile development
PRESENTATION Q1 2013 Mobile development New features implemented, such as live chat with support, deposits, more payment options, new bonus system and more games revenues will grow strongly over the Similar to our websites in functionality coming 12 months Ipad version launched CasinoEuro.dk in app
Slide 38: Mobile - Betsson
PRESENTATION Q1 2013 Mobile - Betsson The next big step is Betsson.com – launch in Q2 A complete mobile offering with: • Sportsbook • Livestreaming revenues will grow strongly over the • Casino coming 12 months • Scratch • Poker More competitive offer – industry leading solution Huge installed base
Slide 39: Legal Update
PRESENTATION Q1 2013 LEGAL UPDATE
Slide 40: Germany, The Netherlands, Sweden
PRESENTATION Q1 2013 Germany The legal uncertainties in Germany will continue for quite some time despite the new federal licenses being issued. The Netherlands The new law proposal is delayed, which means that licenses probably will not be granted until at least 2014. Sweden PM to be issued by Fina
Slide 41: USA
PRESENTATION Q1 2013 USA Nevada, New Jersey and Delaware have now moved ahead with online gaming regulations. No major political support for liberalising online gaming on a federal level. The situation is difficult due to the fact that New Jersey most likely will allow PokerStars to get a license wh
Slide 42: Events after Q1
PRESENTATION Q1 2013 EVENTS AFTER Q1
Slide 43: Events after Q1
PRESENTATION Q1 2013 The second quarter started with revenue at a lower average level than in the first quarter, which is expected because of the seasonal variation. On April 20, a pooled Jackpot of EUR 6.7 million went out on Betsson.com. There have been no other significant events after the end of
Slide 44: Q&A
PRESENTATION Q1 2013 betsson ab Q&A