Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q4 2019 Earnings Presentation
16 slides from Betsson Ab Class B's earnings presentation, February 2020
Slide 1: Q4 2019
Q4 2019 Pontus Lindwall, CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Q4 in Brief
Q4 IN BRIEF — Strong operating income — Revenue at SEK 1,290 million — EBIT at SEK 200 million, EBIT margin 15.5% — Sportsbook show strong turnover growth — Gross turnover all-time high in Q4 — SB margin lower than average impacting SB revenue — Number of active customers grew 3% Y/Y — Deposits in Q
Slide 3: Full Year 2019
FULL YEAR 2019 — Delivers operating income SEK 865 million — EBIT margin 16.7% — Temporary downturns mitigated by geographical spread and efficient organisation — Despite temporary challenges on a few markets our long-term ambition remains – to out-grow the market, organic and through acquisitions —
Slide 4: Recent Product & Technology Initiatives
RECENT PRODUCT & TECHNOLOGY INITIATIVES — Price winning Mobile Game Frame innovation for enhanced customer experience — Fast deposits — Game Search with access to recently played games — In-game communication — Sportsbook activities — B2B enabled — First B2B agreement signed in Q1 2020 with ibet — S
Slide 5: Betsson with Focus on ESG
BETSSON WITH FOCUS ON ESG Sustainability framework adopted by the Board Great Place to Work Customer Service International Gaming People Climate Community Operator of the Awards 2019 Year impact impact impact EGR Nordics Awards 2019 Ambition: Best workplace in the Ambition: Fighting climate change A
Slide 6: Commitment to Player Protection
COMITTMENT TO PLAYER PROTECTION Selected initiatives — Recent development and initiatives — Launch of “onebetsson.com” – covers Betsson’s Budget/deposit limits Gaming overview CSR initiatives around the globe In Q4 2019, 36% of all new Gives customers a clear picture of depositing customers chose th
Slide 7: Regulatory Update
REGULATORY UPDATE — Sweden — Fine regarding Nordicbet appealed, still pending — The Netherlands — Market opening postponed to July, 2021 & Applications accepted January, 2021 — Requirements on age verification — Denmark — Gaming tax increase from 20% to 28% from 2021 — Germany — Possible to apply fo
Slide 8: Financial Summary Q4
FINANCIAL SUMMARY Q4 — Total revenue SEK 1,290 million SEK m Q4 2019 Q4 2018 Change FY 2019 FY 2018 — Sportsbook performing well — Gross turnover increased 15% Y/Y and 17% Q/Q Revenue 1,290 1,437 -10% 5,173 5,420 — Sportsbook margin at 6.8% Gross profit 839 1,018 -18% 3,428 3,860 — Revenues on par w
Slide 9: Fourth Quarter – By Region
FOURTH QUARTER – BY REGION — The Nordics continue under pressure -10% — Weak revenue trend due to regulatory challenges — Betsson’s payment platform solution provide 209 future competitive advantage — Western Europe almost on par with Q3 67 100 29 — Hard to predict market conditions in the Netherlan
Slide 10: Sportsbook Development
SPORTSBOOK DEVELOPMENT 8 000 10% 7 000 — Sportsbook gross turnover growth by 15% Y/Y 6 000 8% due to performance enhancements 5 000 6% SEK m 4 000 4% — 50,108 live betting events in Q4 2019 reflecting a 3 000 2 000 competitive offering, an increase of 14% from Q3 1 000 2% 0 0% — SB revenue decline o
Slide 11: Casino Development
CASINO DEVELOPMENT — Betsson offer 2,700 casino games of which Casino revenue 2,000 on mobile 1 200 — Casino revenue decreased by 10% Y/Y but 1 000 saw an increase compared to Q3 800 — Live casino share of total revenue increasing SEK m 600 — Casino 75% of total revenue 400 200 0 Q4 2017 Q1 2018 Q2
Slide 12: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION — Operating cash flow SEK 238 million — Mainly driven by operating income and negative impact from changes in working capital SEK m Q4 2019 Q4 2018 FY 2019 FY 2018 — Investments Operating cash flow 238 289 1,150 1,273 — Driven by investments in Betsson’s proprietary te
Slide 13: Proposal on Dividend
PROPOSAL ON DIVIDEND — The Board of Directors proposes to the AGM that SEK 2.84 per share is distributed to the shareholders. — A total of SEK 393.1 million will be distributed through an automatic redemption process. — The proposed dividend represents 50 percent of net income, in line with the divi
Slide 14: Q1 2020 Trading Update
Q1 2020 TRADING UPDATE — Strong start of the new financial year — Daily average revenue up until February 9 was 6% higher than the full first quarter last year — Strong sportsbook margin during the first six weeks in 2020 6% 14
Slide 15: Summary
Long gaming SUMMARY industry experience and considerable — In full-year 2019 Betsson delivers an operating profit size of SEK 865 million despite a few market challenges Proprietary technology secures — Betsson confident about the long-term opportunities the future — Enhanced Sportsbook provide perf
Slide 16: Betsson AB
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