Slide 1: Q2 2014: Second quarter revenues grew 30%
PRESENTATION Q2 2014 Q2 2014 Second quarter revenues grew 30%
Slide 2: Presentation Outline
PRESENTATION Q2 2014 Presentation Outline Business development update Q2 Highlights Legal update FIFA World Cup Events after Q2 Q&A
Slide 3: Business Development Update
PRESENTATION Q2 2014 BUSINESS DEVELOPMENT UPDATE
Slide 4: Multi Supplier and Multi Brand Strategy
PRESENTATION Q2 2014 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 5: Unique customer offering
PRESENTATION Q2 2014 Unique customer offering IN HOUSE IN HOUSE IN HOUSE IN HOUSE IN HOUSE EXCLUSIVE PLATFORM SPORTSBOOK MOBILE APPS PAYMENT SYSTEM LOYALTY SYSTEM PRODUCTS
Slide 6: Mobile first - Penetration
PRESENTATION Q2 2014 Mobile first - Penetration Represents 17% of total revenues, which is an increase of 28% compared to the preceding quarter Betsson.com is the best performing brand. Mobile revenues increased 809% compared to corresponding period last year Brand penetration; Betsson, Betsafe and
Slide 7: Mobile first - Development
PRESENTATION Q2 2014 Mobile first - Development Native Ipad app was launched in May for Betsson and Betsafe New mobile web and Native app for Nordicbet.com Mobile web launched in Q2 for Oranje Added payment methods in mobile for Oranje & Kroon
Slide 8: Mobile Sportsbook Turnover
PRESENTATION Q2 2014 Mobile Sportsbook Turnover 35% 30% 30% 25% 20% 21% 21% 20% 17% 18% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 2013 2014
Slide 9: Oranje and Kroon – Q2
PRESENTATION Q2 2014 Oranje and Kroon – Q2 Contributed with SEK 87.8 million in revenues and SEK 58.2 million in EBIT EBIT margin of 66.3% 13% growth – compared to 5% last year
Slide 10: Q2 Highlights
PRESENTATION Q2 2014 Q2 HIGHLIGHTS
Slide 11: Q2 Financial highlights
PRESENTATION Q2 2014 Q2 Financial highlights Revenues amounted to SEK 752.3 (579.2) million, equivalent to an increase of 30% Organic growth amounted to 15%, adjusted for FX 16% Casino gross profit growth, adjusted for acquisition effects, amounted to 13% Deposits grew 30%
Slide 12: Q2 Financial highlights
PRESENTATION Q2 2014 Q2 Financial highlights Operating income of SEK 190.4 (137.8) million equal to a margin of 25.3 percent (23.8 percent) Cash by end of period SEK 433.2 million (317.5) Earnings per Share SEK 3.84 (2.95)
Slide 13: Revenues, 30% growth
PRESENTATION Q2 2014 Revenues, 30% growth M SEK 800 752.3 700 600 500 400 300 200 100 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 14: Product and Geographical Split
PRESENTATION Q2 2014 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 15: Gross Profit per segment
PRESENTATION Q2 2014 Gross Profit per segment 23.0% (25.7%) B2B, Business to business B2C, Business to 77.0% consumers (74.3%) Figures in brackets refer to the same period last year
Slide 16: Gross Profit per product
PRESENTATION Q2 2014 Gross Profit per product 1.8% (3.7%) Casino 26.5% (26.2%) Poker 2.9% Sportsbook 68.9% (4.6%) (65.5%) Other Figures in brackets refer to the same period last year
Slide 17: Gross Profit per geographical area (B2C)
PRESENTATION Q2 2014 Gross Profit per geographical area (B2C) 0.3% (0.3%) Nordic Countries 29.1% (17.7%) Other Europe 70.1% (81.4%) EU, outside Nordic region 0.5% (0.6%) Rest of the world Figures in brackets refer to the same period last year
Slide 18: Key Performance Indicators
PRESENTATION Q2 2014 KEY PERFORMANCE INDICATORS
Slide 19: Q2 Sportsbook
PRESENTATION Q2 2014 Q2 Sportsbook SEK million 2014 – Q2 Growth 2014 – Q2 Growth B2C B2C B2B B2B Gross Turnover SB 1,474.2 30.5% 2,666.2 15.0% Gross Margin SB¹ 5.3% pp 0,1 3.3% pp 0,4 Gross Profit 78.6 33.4% 88.0 30.0% Total margin after free bets was 7.0% (6.5%) ¹Margins after allocated costs
Slide 20: Active Customers – focus on high value customers
PRESENTATION Q2 2014 Active Customers – focus on high value customers Thousand 600 500 381.4 400 300 200 100 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 2007 2008 2009 2010 2011 2012 2013 2014
Slide 21: Registered Customers
PRESENTATION Q2 2014 Registered Customers Thousand 8 000 7 475.4 7 000 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 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 2013 2014
Slide 22: Deposits – 30% growth
PRESENTATION Q2 2014 Deposits – 30% growth M SEK 3 000 2 613.4 2 500 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 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014
Slide 23: Legal Update
PRESENTATION Q2 2014 LEGAL UPDATE
Slide 24: Legal Update
PRESENTATION Q2 2014 Legal Update The Netherlands The proposed legislation has recently been sent from the government to the second chamber in the parliament. The parliament will review the proposal in September this year The proposal was in line with expectations in terms of tax and structure Betss
Slide 25: FIFA World Cup
PRESENTATION Q2 2014 FIFA WORLD CUP
Slide 26: World Cup Facts
PRESENTATION Q2 2014 World Cup Facts Total turnover during WC was 827,4 million SEK Average turnover per game was 12,9 million SEK In Q2, World Cup represented 4% of total revenues SB margins after free bets during the World Cup were in line with overall margins during the quarter Most popular bets:
Slide 27: Turnover comparison in SEK
PRESENTATION Q2 2014 Turnover comparison in SEK SEK 40 000 000 35 000 000 30 000 000 25 000 000 20 000 000 15 000 000 10 000 000 5 000 000 0 Allsvenskan Top game in Top game in Average Champions World Cup Derby La Liga Premier World Cup League Final Final League match
Slide 28: Turnover per game in SEK
PRESENTATION Q2 2014 Turnover per game in SEK Top 6 games (All from playoffs) M SEK 40 35 30 ”Median” 6 games 25 20 Lowest 6 games 15 10 5 0
Slide 29: Characteristics of profitable results
PRESENTATION Q2 2014 Characteristics of profitable results Tie game Few goals Underdogs performing well Top 5 – Game win Germany – Argentina (1-0) - Final and the winning goal in the 113th minute Brazil – Mexico (0-0) – Heroic performance from Mexico's goalkeeper Netherlands – Costa Rica (4-3 after
Slide 30: Characteristics of less profitable results
PRESENTATION Q2 2014 Characteristics of less profitable results… Predictable outcome Several goals Less profitable live bet where the outcome is known at an early stage Top 5 – Game loss Germany – Brazil (7-1) – 5 goals after 29 minutes in first half France – Honduras (3-0) – France ball possession
Slide 31: Suarez “biting odds” social media hit!
PRESENTATION Q2 2014 Suarez “biting odds” social media hit! It had a huge penetrating power in international media. For example it was mentioned in the British tabloids, CNN, Fox Sports and ESPN
Slide 32: Events after Q2
PRESENTATION Q2 2014 EVENTS AFTER Q2
Slide 33: Events after Q2: third quarter start
PRESENTATION Q2 2014 The third quarter has started with revenues somewhat above average level of the previous quarter. This is explained by the activity and good margins in connection with the end of the World Cup There have been no other significant events after the end of the period
Slide 34: Q&A
PRESENTATION Q2 2014 betsson ab Q&A