Slide 1: Q4 2018
Q4 2018 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q4
HIGHLIGHTS Q4 — All-time high revenue — SEK 1,437 million — Growth across all regions — All-time high EBIT — SEK 342 million — Efficiencies continue to show effect — Gaming licenses received in Sweden — eCogra Safe and Fair Seal certificate received 2
Slide 3: Financial Summary Q4
FINANCIAL SUMMARY Q4 — Total revenue grew 14% SEK m Q4 2018 Q4 2017 Change FY 2018 — 12% organic growth Revenue 1,437 1,256 14% 5,420 — Casino revenue grew 24% Gross profit 1,018 903 13% 3,860 — Sportsbook revenue down by 5% Gross margin 70.9% 71.9% 71.2% — Explained by industry-high Sportsbook EBIT
Slide 4: Proposal on Dividend: SEK 3.89 per share
PROPOSAL ON DIVIDEND: SEK 3.89 per share The Board of Directors proposes to the AGM that SEK 539.0 (393.1) million, which corresponds to SEK 3.89 (2.84) per share, is distributed to shareholders. Distribution to shareholders will be made through an automatic redemption process. The proposed dividend
Slide 5: Back on Track Plan Still on Track
BACK ON TRACK PLAN STILL ON TRACK — Back on Track plan put in place in Q4 2017 Growth in core — Built around four areas with culture and markets organisation at the core — Pillars of the plan: — Improve products and performance — Turnaround growth trends in core markets — Improve efficiencies Produc
Slide 6: Product & Technology
PRODUCT & TECHNOLOGY — Major improvements in product offering and site speed — New functionality — Sportsbook Search, Market Filter, Cash-out on combination bets — Product modification for SGA compliance — Roll-out of OBG on desktop ongoing — AI automated chat box for customer service — Improved RG
Slide 7: Another Quarter with Growth in All Regions
ANOTHER QUARTER WITH GROWTH IN ALL REGIONS +14% Revenue, Q4 2018 29 6 93 3% 53 19% SEK m 1 437 46% 1 256 Nordics Nordics Revenue Q4 '17 Revenue Q4 '18 CEECA RoW Western Europe Western Europe 32% CEECA RoW 9% 26% 12% 13% 7
Slide 8: Efficiencies Continue to Improve Profitability
EFFICIENCIES CONTINUE TO IMPROVE PROFITABILITY 1 400 30% 1 200 25% 500 30% 1 000 25% 20% 400 800 20% SEKm 15% 300 600 15% 10% 200 400 10% 5% 100 200 5% 0 0% 0 0% 2014 2015 2016 2017 2018 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 EBIT EBIT margin EBIT EBIT margin 8
Slide 9: Casino Development
CASINO DEVELOPMENT — Betsson offer 2,700 casino games of which 2,000 on mobile 1 200 — Casino growth 24% — Organic growth 20% 1 000 — Casino 75% of total revenue 800 — Growth primarily in the Nordics and SEK m Western Europe 600 — Mobile casino revenue increased 35% and 400 accounts for 64% of casin
Slide 10: Sportsbook Development
SPORTSBOOK DEVELOPMENT — Betsson has extensive football offering within its 7 000 9% 8% own Sportsbook solution 6 000 7% 5 000 — 230+ pre-match markets 4 000 6% 5% SEK m — 100+ live markets 3 000 4% — 46,691 live betting events in Q4 2018, 2 000 3% 2% 24% increase from last year 1 000 1% 0 0% — SB t
Slide 11: Sweden Regulated Market
SWEDEN REGULATED MARKET —Regulated since January 1, 2019 — 18 percent betting duties — 5 year licenses for four brands —Impact from re-regulation on EBIT — Welcome bonus, one time per customer — Increased marketing — Betting duties —Approximately 20,000 customers self-excluded at spelpaus.se —New ma
Slide 12: Regulatory Update
REGULATORY UPDATE — Licences in 12 jurisdictions including Sweden from January 1, 2019 — Revenue share from regulated markets estimated to increase from 24% in 2018 to 30-40% in 2019 — Re-regulation of gambling market in the Netherlands ongoing — Betting duties increase in Italy from 1 January, 2019
Slide 13: Summary
SUMMARY —All-time high revenue and EBIT —2018 has got the company Back on Track —Stay on track — Continued improvements of products and technology to offer our customers fun and secure entertainment — Efficiencies to absorb betting duties — Continued growth in core markets — Geographical spread to l
Slide 14: betsson abo
betsson abo