Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2010 Earnings Presentation
37 slides from Betsson Ab Class B's earnings presentation, Apr 27, 2010
Slide 1: Presentation Q1 2010
2010-04-27 Presentation Q1 2010 Pontus Lindwall CEO and President
Slide 2: Betsson
Betsson • Introduction • Q1 Financial Presentation • Product and Geographical split • Key Performance Indicators - Sportsbook margin - Customer deposits • Legal • Events after Q1 • Q&A
Slide 3: Introduction
2010-04-27 Betsson Introduction
Slide 4: Betsson
Betsson • 45 years of accumulated competence • 276 employees • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of € 500 000 000 • Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Expekt, Bwin and similar
Slide 5: Betsson - What's your thrill? OPEN ACCOUNT!
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Slide 6: CasinoEuro.com
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Slide 7: Sverigeautomaten
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Slide 8: Finnish site: Tietoa meista
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Slide 9: Cherry Casino
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Slide 10: High Growth and Profitability
High Growth and Profitability Revenue Growth EBIT-margin 2007 121% 29.3% 2008 60% 26.7% 2009 25% 24.4% 2010 (Q1) 17% 22.9% • Outperforming both market growth and competitors • Manage to ”invest during operation”, constantly investing in IT-infrastructure and partnerships while managing operations
Slide 11: Examples of Investments 2009
Examples of Investments 2009 Investment Outcome Active Customers +82% Sportsbook Gross Turnover +89% EU outside Nordic +28%
Slide 12: Investment Outcome
Investment Outcome Increased Livebetting offering Live Gross Turnover +161% Introduction of Scratch games Other Products +163%
Slide 13: Ongoing Investments 2010
Ongoing Investments 2010 Investment Betsson Business Solutions GTS Implementation (CasinoEuro) Entraction Betsson.com - General Improvments
Slide 14: Financial Presentation Q1 2010
2010-04-27 Betsson Financial Presentation Q1 2010
Slide 15: Q1 Highlights
Q1 Highlights • Revenues increased 17% to SEK 367.7 M (315.5) • Customer deposits increased with 31% • Operating income increased 2% to SEK 84.2 M (82.4) • Betsson broaden both poker and casino offer • Betsson Business has faced great interest
Slide 16: Q1 Highlights
Q1 Highlights • Operating income negatively affected with SEK 9.2 M (revenue 5.6 M) because of currency revaluation • Net contribution from capitalization and amortization of development costs was SEK 0.6 (7.8) M SEK • Earnings per Share SEK 2.04 (2.01) Numbers in gray = Q1 2009
Slide 17: Q1 Highlights
Q1 Highlights • Operating margin 22.9% (26.1) • Active customers increased 82% to 318 600 (174 600) • Cash by end of period SEK 520.4 M (436.8) Numbers in gray = Q1 2009
Slide 18: Quarter on Quarter
Quarter on Quarter • Revenues decreased 4% to SEK 367.7 M (382.9) • Operating income decreased 10% to SEK 84.2 M (93.5) • Active customers increased 10% to 318 600 (288 700) Numbers in gray = Q4 2009
Slide 19: Sportsbook
Sportsbook • Launched in 2006, it contributes to 25% of Gross Profit with continued growth • 89% growth year-on-year in Turnover, 161% in live betting • Margins above industry average
Slide 20: Revenues
M SEK Revenues 450 367.7 400 350 300 250 200 150 100 50 0 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
Slide 21: Product and geographical split
2010-04-27 Betsson Product and geographical split
Slide 22: Gross Profit per Product
M SEK Gross Profit per Product 350 300 Growth (%) 250 Other + 163 (Y) + 20 (Q) 200 Poker - 26 (Y) - 4 (Q) 150 Sportsbook + 25 (Y) 100 - 12 (Q) Casino + 19 (Y) 50 - 3 (Q) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009
Slide 23: Gross Profit per Product
Gross Profit per Product 5% 10% Casino Sportsbook 24% 61% Poker Other Q1 2010
Slide 24: Gross Profit per Geographical Area
Gross Profit per Geographical Area SEK Growth (%) + 138 (Y) + 111 (Q) + 28 (Y) + 5 (Q) + 29 (Y) + 0 (Q) + 6 (Y) - 10 (Q) 2008 2009
Slide 25: Gross Profit per Geographical Area
Gross Profit per Geographical Area 0.6% 14% Nordic Countries 13% Other Europe 61 % 33% 34% 54% 51% EU, outside Nordic region Rest of the world Q1 2010
Slide 26: Key Performance Indicators
2010-04-27 Key Performance Indicators SB Margins Deposits
Slide 27: Growth Indicators
Growth Indicators Growth Q1 2010 Y/Y Q/Q Active Customers 82% 10% Registred Customers 48% 14% Revenues 17% - 4% Customer Deposits 31% 5% Gross Turnover SB 89% 34% • Increase in active customers due to higher activity and different market activities. The measure active customers shall be seen in a lo
Slide 28: Active Customers
Active Customers 350 318 600 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 • + 82% compared to Q1 2009 • + 10% compared to Q4 2009
Slide 29: Registered customers
Registered customers 3000 2 414 900 2500 2000 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 • + 48% compared to Q1 2009 • + 14% compared to Q4 2009
Slide 30: Sportsbook Margins
Sportsbook Margins 2010 2009 2009 2009 2008 Q1 Q1 Q4 FY FY Gross Turnover SB 1012.8 536.5 755.3 2571.5 1567.1 Gross Margin SB¹ 7.1% 10.7% 10.9% 8.0% 10.1% Gross Profit 72.0 57.4 82.0 206.6 159.0 1) Margin after direct and allocated costs
Slide 31: Live Betting Increases
Live Betting Increases Q1 2010 Q1 2009 13% 61 % 33% 54% Share of Gross Turnover in Sportsbook
Slide 32: Legal
2010-04-27 Betsson Legal "4 betsson gx
Slide 33: Legal
Legal French National Assembly approved online gaming laws, with the ambition to have it at place before FIFA World Cup in June. Opinion from the European Commission still to be seen. No news during the quarter in Turkey. Payment ban to be implemented June 1, 2010. EFTA Surveillance Authority has pr
Slide 34: Legal
Legal Continued discussions about legalising internet gaming both on federal and state level. Denmark plans a new legislation to be implented January 1st , 2011 with no limitations in number of licensees. Allowed product offering does not include Bingo or Lottery tickets. Legislation in place which
Slide 35: Events after Q1
2010-04-27 Betsson Events after Q1
Slide 36: Events after the first quarter
Events after the first quarter • Revenues in the beginning of the second quarter in line with revenues in the first quarter • Annual General Meeting to be held May 6, Stockholm
Slide 37: Q&A
Q&A What's your thrill? - betsson 9x