Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2020 Earnings Presentation
22 slides from Betsson Ab Class B's earnings presentation, 2020
Slide 1: Q1 2020
Q1 2020 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE Highlights Financial overview & Trading update Product & Technology update Regulation & Sustainability Summary Q&A 2
Slide 3: Highlights
HIGHLIGHTS — Strong results in all areas — Sustainable growth strategy delivers — Revenue SEK1,418m +7% Y/Y — EBIT SEK261m, EBIT margin 18.4% — Sportsbook revenue growth +29% All-Time High revenue — Launch of new mobile casino product — Acquisition of GiGs B2C vertical completed — Milestone reached
Slide 4: Active Customers and Deposits
ACTIVE CUSTOMERS AND DEPOSITS 800 000 7 000 700 000 6 000 600 000 5 000 500 000 4 000 SEKm 400 000 3 000 300 000 2 000 200 000 1 000 100 000 0 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Active Cust
Slide 5: Covid-19 Update
COVID-19 UPDATE — Managing health and safety via remote working - the whole business is operating well — Products and services delivered to the same high quality, passion and standards as prior to the crisis — Increase in casino activity partly mitigates the impact on sportsbook revenues from absenc
Slide 6: Financial Overview & Trading Update
FINANCIAL OVERVIEW & TRADING UPDATE
Slide 7: 5Y Revenue Development
5Y REVENUE DEVELOPMENT 1600 1400 1200 1000 SEKm 800 600 400 200 0 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenues 7
Slide 8: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +6.5% 98 177 33 24 1418 1331 Revenue Q1'19 Nordics Western Europe CEECA RoW Revenue Q1'20 Regions 8
Slide 9: Casino Development
CASINO DEVELOPMENT Casino revenue — Casino revenue performed in line with Q1 2019, representing 72% of total revenues — Gaming on mobile devices 67% (66%) of total casino revenues SEK m — New casino product added late March with compelling UX — Live casino share of total casino revenue is 22% 9
Slide 10: Sportsbook Development
SPORTSBOOK DEVELOPMENT 8 000 9% 7 000 8% 6 000 7% 6% 5 000 5% SEKm 4 000 4% 3 000 3% 2 000 2% 1 000 1% 0 0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SB Turnover SB Margin 450 — Sportsbook gross turnover growth +8% Y/Y 400 350 — Sportsbook margin 8.5% (6.3%) 300 250 SEK
Slide 11: EBIT Development YoY
EBIT DEVELOPMENT YOY EBIT 42 EBIT Margin Margin 6 13 19.2% 87 18.4% 21 MSEK 255 261 Q1 19 EBIT Revenues Cost of Services Marketing Personnel Other Costs Q1 20 EBIT Sold Expenses Expenses 11
Slide 12: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION SEK m Q1 2020 Q1 2019 FY 2019 — Operating cash flow SEK 322 million — Mainly driven by operating income and positive impact from changes in working capital Operating cash flow 322 215 1,150 — Investments — Driven by investments in Betsson’s proprietary technology Cash
Slide 13: Q2 2020 Trading Update
Q2 2020 TRADING UPDATE* — Daily average revenue until 16 April was equal to (2% organic) the full second quarter 2019 — Near-term trading hard to predict due to: — uncertainty on major sporting events’ timetable — duration of the covid-19 impact — All major business activities remain as normal * Thi
Slide 14: Product & Technology Update
PRODUCT & TECHNOLOGY UPDATE betsson ab
Slide 15: Launch of New Casino Product
LAUNCH OF NEW CASINO PRODUCT — A mobile casino with smart access and payment methods launched in Sweden mid-March — Based on simplicity in: Registration, Deposits and Quick withdrawals — This segment represents appr. 20% of the Swedish online casino gambling market 15
Slide 16: Sportsbook Enabled for B2B and New Markets
SPORTSBOOK ENABLED FOR B2B AND NEW MARKETS — Investments in building a flexible and competitive sportsbook enabled for B2B — The solid technical platform and flexible odds compiling drive revenue to relevant events — Additional markets and new features such as partial cash out added to enhance UX —
Slide 17: Regulation & Sustainability
REGULATION & SUSTAINABILITY
Slide 18: Regulatory Update
REGULATORY UPDATE — The Netherlands — Market opening postponed to July 2021 — Dutch government has extended the 24 months cooling-off period by six months — Germany — Licensed sport betting market opened on 1 Jan 2020, interim regime until July 2021, federal ban on online casino and wagering limits
Slide 19: Sustainability – Community Engagements
SUSTAINABILITY – COMMUNITY ENGAGEMENTS Betsson support its local communities through Sustainability framework covid-19, some examples: People Climate Community — Remote working for social distancing impact impact impact — Supporting local health organisations — Company appartments to frontline healt
Slide 20: Summary
Many years of SUMMARY extensive gaming industry — Strong quarter in all areas proving strategic direction experience Proprietary technology and scale — New casino product launched, enhancing UX secure the future — Milestone reached by signing first B2B sportsbook customer Strong financials to delive
Slide 21: Legal Disclaimer
LEGAL DISCLAIMER Betsson AB gives forecasts. Certain statements in this report presentation are forward-looking and the actual outcome may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include developments for custo
Slide 22: Betsson AB
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